Cypros Pharmaceutical acquires Ethamolin Injection; product is expected to double fiscal 1997 sales.CARLSBAD, Calif.--(BUSINESS WIRE)--Nov. 5, 1996--Cypros Pharmaceutical Corp. (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 :CYPR), Tuesday announced that it has acquired the rights to Ethamolin Injection from Schwarz Pharma Inc. ("Schwarz"), in an asset purchase for $3.2 million in staged payments. Simultaneously, the company also entered into a three-year agreement with Schering-Plough Corp. for the manufacture of Ethamolin in finished form. This acquisition continues the Cypros business strategy to build a hospital sales force and near-term profitability around a critical mass of acquired products that serves the same market as its own development-stage products. Ethamolin is an injectable drug approved by the U.S. Food and Drug Administration for the treatment of varices varices /var·i·ces/ (var´i-sez) [L.] plural of varix. Varices A type of varicose vein that develops in veins in the linings of the esophagus and upper stomach when these veins fill with blood and swell that bleed into the esophagus and stomach, an often fatal event. This is common in patients with severe liver disease Liver Disease Definition Liver disease is a general term for any damage that reduces the functioning of the liver. Description The liver is a large, solid organ located in the upper right-hand side of the abdomen. , and comprises 15 to 20 percent of all gastrointestinal hemorrhages. Ethamolin is the only approved agent for this medical condition. Ethamolin is well established, but under-utilized, due to an absence of promotion efforts over the last few years. Since it is Cypros' third acute-care drug on the market, the company will be devoting significant sales force time and marketing effort to expanding the sales of Ethamolin in the hospital setting. In commenting on the announcement, Paul J. Marangos, chief executive officer, said: "Ethamolin should immediately double the company's revenues from product sales, and facilitate our sales force expansion. This new addition to our portfolio of marketed products will bring Cypros one step closer to reaching its goal of profitability. "Additional acquisitions and late-stage product development opportunities are being evaluated to expand our near-term product portfolio and complement our internal clinical programs." Cypros Pharmaceutical develops cytoprotective drugs and markets acute-care, hospital-based products. The company has two clinical development programs, and several drugs in preclinical research. Six Phase II trials are currently in progress, which include four for CPC-111 (acute complications of angioplasty, coronary artery bypass grafting coronary artery bypass graft n. Abbr. CABG A surgical procedure in which a section of vein or other conduit is grafted between the aorta and a coronary artery below the region of an obstruction in that artery. surgery, congestive heart failure congestive heart failure, inability of the heart to expel sufficient blood to keep pace with the metabolic demands of the body. In the healthy individual the heart can tolerate large increases of workload for a considerable length of time. and sickle cell anemia sickle cell anemia n. A chronic, usually fatal inherited form of anemia marked by crescent-shaped red blood cells, occurring almost exclusively in Blacks, and characterized by fever, leg ulcers, jaundice, and episodic pain in the joints. crises), and two for CPC-211 (stroke and head injury). The company also markets two intravenous agents (Inulin inulin /in·u·lin/ (in´ul-in) a starch occurring in the rhizome of certain plants, yielding fructose on hydrolysis, and used in tests of renal function. in·u·lin n. and Glofil), used to assess kidney function. This news release contains forward-looking statements which involve risks and uncertainties. Such statements are subject to certain factors which may cause the company's plans to differ. Factors that may cause such differences include, but are not limited to, the risks discussed in the company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended July 31, 1996, and the Risk Factors section of the company's Registration Statement No. 33-80645. CONTACT: Cypros Pharmaceutical Corp., Carlsbad David W. Nassif, 619/929-9500 |
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