Axcan Completes Joint Venture With Schwarz Pharma.MONTREAL--(BUSINESS WIRE)--Jan. 21, 1997--AXCAN PHARMA(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). ;ME AXP The brand name Digital gave to its first family of Alpha-based computers. In 1998, Digital was acquired by Compaq. See Alpha. ) Axcan Pharma Inc. announces that it has completed its joint venture arrangement with Schwarz Pharma Inc. of Milwaukee (Wisconsin) and formed Axcan Schwarz LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a Delaware limited liability company. This Company will market and distribute URSO URSO University Radiation Safety Officer (assesses radiation hazards on campus) (TM) ursodiol tablets in the USA, initially for the treatment of Primary Biliary Cirrhosis Primary Biliary Cirrhosis Definition Primary biliary cirrhosis is the gradual destruction of the biliary system for unknown reasons. Description (PBC PBC 1 Peripheral blood cells 2 Primary biliary cirrhosis, see there ) and later for other indications as well, once they are approved by the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. . Axcan and Schwarz each have a 50 percent ownership interest in Axcan Schwarz. The agreement in principle was announced in November. PBC represents a 50,000 patient US $100 M market in the U.S.A. The other indications pursued by Axcan target a much larger clientele which would represent several million patients in the U.S.A. As part of this 10-year agreement, Schwarz Pharma has purchased from Axcan 750,000 special warrants that will unconditionally be converted into 750,000 common shares. Each warrant was purchased at a price of $15.50 for aggregate proceeds of $11,625,000. Axcan has agreed to qualify the common shares to be issued to Schwarz under the prospectus to be filed with Canadian securities commissions in connection with Axcan's prior issue on December 19, 1996, of 1,509,300 special warrants. Initial funding of the joint venture has been made through equal capital contributions of US $250,000 by both Schwarz and Axcan. Schwarz has also agreed to lend the joint venture up to US $5 million for 2 years for working capital purposes. Axcan has licensed the URSO(TM) trademark to Axcan Schwarz and will supply finished product to the joint venture. Axcan will receive milestone payments for new URSO indications once they are approved by the FDA. The net amount of these payments are US $20 million for the prevention of colorectal cancer, US $10 million for the treatment of hypercholesterolemia, US $5 million for adjunctive treatment of Hepatitis "C" and US $10 million for non-alcoholic steatohepatitis. Axcan Schwarz will benefit from marketing and distribution services provided by Schwarz, as well as scientific marketing and regulatory affairs services provided by Axcan to market ursodiol for PBC in the U.S.A. Axcan specializes in the field of gastroenterology and is also active in areas related to contraception, the prevention of sexually transmitted diseases Sexually transmitted diseases Infections that are acquired and transmitted by sexual contact. Although virtually any infection may be transmitted during intimate contact, the term sexually transmitted disease is restricted to conditions that are largely and hemodialysis. Founded in 1983, it now employs some 100 people in Canada and has its head office on Montreal's South Shore as well as affiliates and offices in Laval (Montreal), Calgary and Plattsburg, New York. CONTACT: Axcan Pharma Inc. Leon F. Gosselin, 514 467-5138 or Axcan Pharma Inc. Bertrand Bolduc, 514/467-5138 bbolduc@axcan.com |
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