DEPRENYL ANIMAL HEALTH ANNOUNCES EQUITY INVESTMENT IN PHOENIX SCIENTIFIC, INC.
DEPRENYL ANIMAL HEALTH ANNOUNCES EQUITY INVESTMENT IN PHOENIX SCIENTIFIC, INC. OVERLAND PARK, Kan., June 24 /PRNewswire/ -- Deprenyl Animal Health, Inc. (NASDAQ: DAHI) and Phoenix Scientific, Inc. (privately held) are pleased to announce that Deprenyl Animal Health, Inc. has purchased an equity position in Phoenix Scientific, Inc. a newly formed privately held pharmaceutical manufacturing company. Phoenix Scientific, Inc. began construction of its plant in late 1990 specifically to meet the new FDA requirements passed in January 1991 regulating the manufacture of generic drugs for animals. It is perhaps the only state-of-the-art veterinary pharmaceutical manufacturing company with "terminal sterilization" capability. Phoenix Scientific, Inc. is developing a range of veterinary generic pharmaceuticals under the 1991 generic animal drug amendments to the U.S. Food and Drug Act. Phoenix Scientific expects to receive its first generic approval during 1992, with additional approvals expected in 1993, 1994 and in later years. Phoenix Scientific is seeking to establish a contract manufacturing business in addition to the production of generic animal pharmaceuticals. In addition to equity in Phoenix Scientific, Inc. Deprenyl Animal Health, Inc. will receive: -- rights to distribute Phoenix Scientific, Inc. products overseas -- manufacturing of its first anticipated product, Anipryl(R), on a "most favored" basis -- dividends or percentage of profits based on Phoenix Scientific, Inc.'s profitability This relationship provides access to manufacturing and to distribution. Phoenix Scientific, Inc. has relationships with major veterinary product distribution companies with operations throughout the United States. Deprenyl Animal Health, Inc. has granted Phoenix Scientific a non-exclusive right to distribute Anipryl. Commenting on his company's investment in Phoenix Scientific, Dr. David R. Stevens, president, Deprenyl Animal Health, said, "This new association with Phoenix Scientific, a comprehensive strategic relationship, is a major step forward in our drive to become a multi- product animal health pharmaceutical company. In addition to the revenue potential afforded by our right to distribute all future Phoenix Scientific products outside the U.S.A., Phoenix expects that the existing manufacturing facilities at Phoenix Scientific will be expanded to include tablet and power manufacturing capabilities for our Anipryl line of veterinary pharmaceuticals. Through this collaboration with Phoenix Scientific we will have the potential of an added revenue stream during our development stage, plus the potential to manufacture Anipryl. We will also obtain access to the marketing structure which Phoenix Scientific already has in place." C. Wesley Remington, president, Phoenix Scientific, said, "We are especially pleased to have this 'partnership' with Deprenyl Animal Health, and we look forward to the benefits to both our organizations that will result. The Deprenyl Animal Health scientific resources and its technical know-how in the regulatory approval process will be invaluable as we grow our company and its veterinary product line." DAHI will receive 12.5 percent equity in Phoenix Scientific in return for a total purchase price of $1,750,000 of which an initial payment of $750,000 will be made upon the signing of the agreement. Deprenyl Animal Health, Inc. will pay $500,000 from its existing cash reserves and receive a loan from Deprenyl Research Limited for the balance of $250,000. The remaining $1 million will be paid to Phoenix Scientific in $200,000 increments (also by way of loan from Deprenyl Research Limited to Deprenyl Animal Health, Inc.) upon Phoenix Scientific, Inc.'s achieving FDA pre-marketing approval for specified ANADA's. -0- 6/24/92 /CONTACT: David R. Stevens, president of Deprenyl Animal Health, 913-338-2120, or C. Wesley Remington, president of Phoenix Scientific, 816-364-5777, or Irving L. Straus of Straus Corporate Communications, 212-768-2477, for Deprenyl/ (DAHI) CO: Deprenyl Animal Health, Inc.; Phoenix Scientific, Inc. ST: Kansas IN: MTC SU: TNM
LR-OS -- NY062 -- 3456 06/24/92 16:54 EDT
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|Date:||Jun 24, 1992|
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