Healthcare Industry News: Tercica
News Release - May 16, 2007
Tercica Announces New Manufacturing Agreement with LonzaTercica expects significant reduction in Increlex(R) cost of goods by transfer to new manufacturing facility
BRISBANE, Calif.--(HSMN NewsFeed)--Tercica, Inc. (Nasdaq:TRCA ) today announced that it has entered into a new manufacturing agreement with Lonza Group Ltd., for the manufacturing and commercial supply of Increlex®, recombinant human insulin-like growth factor-1 (rhIGF-1).
As part of the agreement, Tercica and Lonza have agreed to transfer the manufacture of bulk Increlex® from Lonza's Baltimore (formerly Cambrex Bio Science Baltimore, Inc.) facility to Lonza's Hopkinton, Massachusetts production facility. The commercial production of Increlex® at the Hopkinton facility is expected to begin in the second half of 2009. The facility in Baltimore will continue to produce Increlex® into early 2008. Between now and the time of the closure of the Baltimore facility, Tercica will build sufficient inventory and safety stock to meet expected commercial demand of Increlex® through the transition period.
"We are pleased to expand our commercial manufacturing partnership with Lonza," said Andrew J. Grethlein, Tercica's Senior Vice President of Pharmaceutical Operations. "They are an organization with significant expertise in biopharmaceutical production, process optimization, and quality systems. We believe that by transferring the production of Increlex from Baltimore to Hopkinton, we will fully leverage Lonza's global capabilities in reliable biopharmaceutical manufacturing and will be able to achieve significant reduction in Increlex cost of goods."
Tercica is a biopharmaceutical company committed to improving endocrine health by partnering with the endocrine community to develop and commercialize new therapeutics for short stature and other metabolic disorders. For further information on Tercica, please visit www.Tercica.com.
Safe Harbor Statement
Except for the historical statements contained herein, this press release contains forward-looking statements concerning the Company's prospects and expectations, including without limitation, that the Company: (A) expects significant reduction in Increlex® cost of goods by transferring to the Hopkinton manufacturing facility; (B) is expected to begin the commercial production of Increlex at the Hopkinton facility in the second half of 2009; © will continue to produce Increlex® into early 2008 in the Baltimore facility; and (D) will build sufficient inventory and safety stock to meet expected commercial demand of Increlex® through the transition period. Because Tercica's forward-looking statements are subject to risks and uncertainties, there are important factors that could cause actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, risks and uncertainties related to the following: (i) the transfer to the new manufacturing facility may not result in a significant reduction in Increlex® cost of goods and/or commercial production by the second half of 2009 because of technological or regulatory issues; (ii) the inventory and safety stock may not meet actual commercial demand of Increlex® through the transition period; and (iii) the risks and uncertainties disclosed from time-to-time in reports filed by Tercica, including most recently Tercica's Form 10-Q for the quarter ending March 31, 2007 filed with the SEC on May 4, 2007. Tercica disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release.
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