Baxter and Inhale enter strategic collaboration.PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif.--(BUSINESS WIRE)--March 4, 1996--Inhale Therapeutic Systems (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : INHL INHL Institute for Nursing Healthcare Leadership ) today announced it has entered into a broad strategic collaboration with Baxter International Baxter International Inc. (NYSE: BAX), is a global healthcare company with 48,000 employees and 2006 sales of US$10.4 billion. Its headquarters is in Deerfield, Illinois. Inc. (NYSE NYSE See: New York Stock Exchange : BAX) to use Inhale's dry powder Dry Powder A slang term for cash reserves kept on hand to cover future obligations. Notes: For example, if a venture capitalist expects bad times in the IPO markets you might hear him say something like, "we want to keep enough dry powder around to keep funding our pulmonary delivery system as a technology platform for developing and launching therapeutic products. Initial work will begin with four compounds, with Baxter providing Inhale development, milestone and equity funding Equity funding An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. totaling up to $80 million. The first four drugs being developed are outside of Inhale's traditional peptide and protein focus. The companies jointly will explore adding additional compounds, including peptides, proteins and other types of therapeutic molecules, to the collaboration. "Inhale has created an innovative technology platform that can be used to develop products to complement Baxter's existing product lines across a number of our businesses," said Dr. Kshitij Mohan, Baxter's Corporate Vice President of Research and Technical Services. "Their system could, we believe, lower the cost of disease treatment and, most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , improve patient compliance and acceptance of new therapies while increasing the availability and quality of home health care." Robert B. Chess, President and Chief Executive Officer of Inhale, said,"This strategic alliance expands the application of our technologies beyond peptides and proteins and will significantly broaden our therapeutic product pipeline." He added, "Baxter is an excellent partner because of its breadth of experience in the health care field, including novel drug delivery approaches, and the company's strong track record in commercializing innovative technologies." Baxter will make an immediate equity investment of $20 million in Inhale at a 25% premium to the current market price. Inhale will receive up to an estimated $60 million of research-and-development funding and milestone payments for the first four molecules, assuming successful development and continuation of the program by Baxter. Baxter also has an option to add molecules to the collaboration that could result in additional funding and milestone payments to Inhale. Inhale will receive royalties and manufacturing revenue on sales of products developed through the collaboration. Inhale has primary responsibility for development of the selected therapeutics. Inhale will develop dry powder formulations for use with its portable inhalation device, and will process and package powders for clinical supplies and marketed products. Clinical trials also will be managed by Inhale. Baxter will be responsible for the worldwide commercialization of the products resulting from the collaboration. The agreement is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976. Baxter International, through its subsidiaries, is the leading manufacturer and marketer of health-care products and services in nearly 100 countries worldwide. The company concentrates research-and-development programs in biotechnology, cardiovascular medicine, renal therapy and related medical fields. Inhale Therapeutics Systems was founded in July 1990 to develop a deep-lung delivery system for a variety of therapeutics including large molecule drugs, such as insulin, erythropoietin erythropoietin /eryth·ro·poi·e·tin/ (-poi´e-tin) a glycoprotein hormone secreted by the kidney in the adult and by the liver in the fetus, which acts on stem cells of the bone marrow to stimulate red blood cell production , interferons and others, presently given by injection for a variety of chronic disorders. This delivery system would provide an alternative to invasive drug delivery -- subcutaneous and intravenous injections -- and may expand the market opportunities for approved therapeutics as well as enable new uses of certain drugs. The company currently has partnerships with a number of major pharmaceutical and biotechnology companies Top 100 Biotechnology Companies The following is a list of the top 100 biotechnology companies ranked by revenue. The first nine companies qualify for the list of the top 50 pharmaceutical companies. . CONTACT: Inhale Therapeutic Systems Rob Chess, 415/354-0700 or Baxter International Mary Thomas, 847/948-2815 or Burns McClellan Clarence Swearngan Jr., 212/505-1919 |
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