Infoseek: The News Channel

Pathogenesis to Announce Acquisition of TOBI License Rights, Other News at Annual Meeting
04:48 p.m Jun 03, 1998 Eastern

SEATTLE, June 3 /PRNewswire/ -- At its annual stockholders' meeting today, PathoGenesis Corp. will announce it has acquired all rights of the Cystic Fibrosis Foundation in TOBI(R) (tobramycin solution for inhalation). TOBI is the company's product for the management of cystic fibrosis patients with Pseudomonas aeruginosa.

In 1994, PathoGenesis obtained an exclusive worldwide license to the use of an aerosol tobramycin solution from the foundation and another party. PathoGenesis has acquired the Cystic Fibrosis Foundation's rights in TOBI in return for a series of payments to the foundation over the next two years. Further terms were not disclosed.

"This acquisition will improve PathoGenesis' gross margins starting in the second half of this year, since we will no longer pay a royalty to the foundation on sales of TOBI," said Wilbur H. Gantz, chairman and chief executive officer. "That is good news for our company and for our shareholders."

In addition, PathoGenesis will announce at its annual meeting that:

* The Health Protection Branch of Canada has accepted for priority review

PathoGenesis' new drug submission.

* The U.S. Patent and Trademark Office has granted PathoGenesis a patent

for a highly sensitive technique that allows researchers to subtract

out cellular material that is common between two relatively small

samples in order to focus on differences that may be significant.

* PathoGenesis uses this technique to identify novel targets for drug

development.

* Market acceptance of TOBI continues to be good. Second quarter 1998

sales of TOBI are expected to represent an increase from the estimated

$10 million of TOBI sales in the first quarter that went to fill

patient prescriptions. The remainder of PathoGenesis' $14.7 million in

first quarter revenues came from sales to fill the distribution

pipeline, grants and royalties.

Also on the annual meeting agenda is a discussion of PathoGenesis' prospects for growth, including its progress on obtaining approval for TOBI in international markets and on pursuing new indications. PathoGenesis filed in March for regulatory approval of TOBI in Canada, and expects to file for TOBI approval in Europe in the fourth quarter. The company also is conducting Phase II clinical trials of TOBI in people with bronchiectasis and tuberculosis and of PA-1648 in tuberculosis patients. Results are expected to be announced in the fourth quarter.

"Our goal is to broaden and deepen the market for TOBI, allowing PathoGenesis to maintain its strong growth rate and bring new drugs to market," Gantz said. "We made an excellent start by becoming profitable for the first time and achieving $14.5 million in TOBI sales in the first quarter. We believe we can continue our strong growth through market leadership in chronic lung infections."

In other news, PathoGenesis received two awards in May for its development of TOBI: the Commissioner's Special Citation from the Food and Drug Administration, and a tribute award from the National Organization of Rare Disorders. TOBI's development was made possible in part by the Orphan Drug Act, which was enacted 15 years ago to provide incentives for companies to develop treatments for rare disorders.

Seattle-based PathoGenesis Corp. develops drugs for treating serious infectious diseases where there is a significant need for improved therapy. The company markets an inhaled antibiotic in the U.S. and is developing drug candidates to treat cystic fibrosis, bronchiectasis and tuberculosis patients. PathoGenesis' stock is traded on the Nasdaq National Market System under the symbol PGNS. The company's Web site is located at www.pathogenesis.com.

Note: This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to known and unknown risks, uncertainties or other factors that may cause the company's actual results to be materially different from historical results or any results expressed or implied by such forward-looking statements. Factors that might cause such a difference include, but are not limited to, uncertainties related to the fact that PathoGenesis began commercial operations only recently, its dependence on TOBI, third party reimbursement and product pricing, government regulation, drug development and clinical trials, competition and alternative therapies, and other factors described in PathoGenesis' filings with the Securities and Exchange Commission. SOURCE PathoGenesis Corp.

Volver a Medios de Comunicación