Healthcare Industry News: ZEGERID
News Release - November 21, 2006
Santarus Announces Effective Date of OTC License Agreement with Schering-PloughSAN DIEGO--(HSMN NewsFeed)--Santarus, Inc. (NASDAQ:SNTS ), a specialty pharmaceutical company focused on therapies for gastrointestinal diseases and disorders, today announced that its license agreement with Schering-Plough HealthCare Products, Inc. for the development, manufacturing and commercialization of ZEGERID® brand products for the over-the-counter (OTC) market is now effective, following the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. Santarus expects to receive the $15 million upfront license fee payable under the OTC license agreement on or about November 22, 2006.
In addition to the $15 million upfront license fee, Santarus may receive up to an additional $65 million in milestone payments upon the achievement of certain regulatory and sales milestones. Santarus will also receive a royalty, subject to adjustment in certain circumstances, on net sales of any ZEGERID OTC products sold by Schering-Plough under the license agreement. Santarus will be obligated to pay to the University of Missouri a royalty based on any ZEGERID OTC net sales pursuant to a license agreement between Santarus and the University of Missouri.
Santarus, Inc. is a specialty pharmaceutical company focused on acquiring, developing and commercializing proprietary products that treat gastrointestinal diseases and disorders and enhance the quality of life for patients. The company currently markets ZEGERID Capsules (launched in late March 2006) and ZEGERID Powder for Oral Suspension. These products are immediate-release formulations of omeprazole, a widely prescribed PPI. More information about Santarus is available on the company's Web site at www.santarus.com.
Santarus cautions you that statements included in this press release that are not a description of historical facts are forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by Santarus that any of its plans will be achieved. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in Santarus' business, including, without limitation: risks related to the licensing arrangement with Schering-Plough, the success of Schering-Plough's development, sales and marketing activities, and Schering-Plough's level of commitment and the potential for termination of the arrangement; Santarus' ability to drive increased market demand for, and generate increased sales of, ZEGERID Capsules, ZEGERID Powder for Oral Suspension and any other products that may be marketed; the scope and validity of patent protection for ZEGERID products and Santarus' and Schering-Plough's ability to commercialize ZEGERID products without infringing the patent rights of others; unexpected adverse side effects or inadequate therapeutic efficacy of ZEGERID products that could delay or prevent product development or commercialization, or that could result in recalls or product liability claims; competition from other pharmaceutical or biotechnology companies; other difficulties or delays relating to the development, testing, manufacturing and marketing of ZEGERID products; Santarus' ability to obtain additional financing as needed to support its operations; and other risks detailed in Santarus' prior press releases as well as in public periodic filings with the Securities and Exchange Commission.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and Santarus undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.
Santarus® and ZEGERID® are registered trademarks of Santarus, Inc.
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