Bio-Technology General Corp. Modifies Distribution Agreement With Accredo Health, Incorporated.
EAST BRUNSWICK, N.J.--(BUSINESS WIRE)--Nov. 4, 2002
BTG to Sell Oxandrin(R), Delatestryl(R) Directly to Wholesalers;
Accredo to Continue to Provide Management Services
Bio-Technology General Corp. (NASDAQ:BTGC) today announced the renegotiation of its agreement with Accredo Health, Incorporated (NASDAQ:ACDO) for the distribution of Oxandrin(R) for the treatment of involuntary weight loss and Delatestryl(R) for the treatment of testosterone deficiency. The original distribution agreement was entered into with Gentiva Health Services which was acquired by Accredo in 2002.
Under the revised agreement, BTG will sell these products directly to wholesalers and Accredo will distribute them for BTG on a consignment basis for a transaction fee. Accredo will earn management fees from BTG for certain services it will continue to provide, such as warehousing and shipping of product, but will cease to recognize revenue it previously recognized as the sole distributor for Oxandrin and Delatestryl. The transition to this arrangement is underway and will be completed during 2003.
In anticipation of the change in its distribution agreement with Accredo, BTG has established direct relationships with key wholesalers. The new arrangement is expected to provide greater economy by reducing BTG's distribution costs.
Sales of Oxandrin have recently been driven by several new initiatives, such as the 2002 sales force expansion and the 2000 long-term care partnership with Ross Products Division, Abbott Laboratories.
Oxandrin prescriptions for the three and nine months ended September 30, 2002 grew 35% and 18%, respectively, over the comparable periods of 2001. Prescription growth from the second to the third quarter of 2002 was 12%. Retail prescriptions, representing approximately 60% of the total, grew 22% in the first nine months of 2002, compared to the same period in 2001, whereas prescriptions in the long-term care sector grew 18%.
As previously announced, BTG has launched a new 10mg Oxandrin tablet for the treatment of involuntary weight loss. The new tablet strength, which allows patients taking 20mg a day, the most common dosage, to convert from eight 2.5 mg tablets to the convenience of one 10mg tablet twice daily, is expected to improve patient adherence to therapy and drive market share growth. Since introducing the product in December 1995, the Company has grown Oxandrin sales to over $47 million in 2001.
Oxandrin is the only oral anabolic agent approved by the FDA as adjunctive therapy to promote weight gain after weight loss following extensive surgery, chronic infections, or severe trauma, and in some patients who without definite pathophysiologic reasons fail to gain or to maintain normal weight. Oxandrin is now available in both 2.5mg and 10mg strengths.
Bio-Technology General Corp. develops, manufactures and markets genetically engineered and other products for human health care. BTG's products are marketed worldwide. Products sold in the United States are Oxandrin(R) (oxandrolone, USP), marketed by BTG and by the Ross Products Division of Abbott Laboratories under a co-marketing agreement, Delatestryl(R) (testosterone enanthate), marketed by BTG, Mircette(R) (oral contraceptive), marketed by Organon, Inc., and BioLon(TM) (sodium hyaluronate), marketed by Akorn, Inc. Products sold internationally are Bio-Tropin(TM) (recombinant human growth hormone), BioLon(TM) (sodium hyaluronate), Bio-Hep-B(TM) (hepatitis B vaccine), Silkis(R) (vitamin D derivative), Arthrease(TM) (sodium hyaluronate for osteoarthritis), and recombinant human insulin. BTG's news releases and other information are available on the Company's website at www.btgc.com.
Arthrease is a trademark of DePuy Orthopaedics, Inc.; Mircette is a registered trademark of Organon, Inc.; Silkis is a registered trademark of Galderma.
Statements in this news release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements" as that term is defined under the Federal Securities Laws. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. Such risks, uncertainties and factors include, but are not limited to, changes and delays in product development plans and schedules, customer acceptance of new products, changes in pricing or other actions by competitors, patents owned by the Company and its competitors, and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission.
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|Date:||Nov 4, 2002|
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