7th Sep 2010 07:00
SPH.L
Sinclair Pharma completes licensing deal
for Kelo-Cote® scar reduction products and technology from ABT Inc.
in France, Italy and Spain
7 September 2010, Godalming, UK: Sinclair Pharma plc (the "Company" or "Sinclair": SPH:L), the international specialty pharma company, is pleased to announce that it has licensed the range of patented fast-drying transparent silicone scar-reduction gel and spray wound dressings marketed under the Kelo-Cote® brand for sale in 3 of the Company's 4 European country operations from Advanced Bio-Technologies, Inc. based in Georgia, USA. The transaction provides Sinclair with an option to manufacture Kelo-Cote® directly in the future and gives it access to the underlying patented silicone technology to develop new products with possibilities of combining Kelo-Cote® with Sinclair delivery technologies and woundcare ingredients. The deal includes an upfront consideration and downstream payments linked to sales performance in the territories from Sinclair to ABT as well as royalties for a fixed transition term.
Kelo-Cote® is a patented topical silicone range composed of a gel and a spray for the management and prevention of abnormal scars (hypertrophic scars and keloids). Kelo-Cote® is approved as a Class I Medical device in Europe. Silicone is recommended as the first-line treatment in the most recognized scar management guidelines and by physicians worldwide including the 2002 International Clinical Recommendations on Scar Management. Kelo-Cote® is the most well researched and published silicone technology available and is a widely recognized scar treatment amongst physicians worldwide. It is present across most of Europe through ABT exclusive distributors. In the UK and Germany alone wholesale sales exceeded €1.1m in the last year with consumer sales in excess of €2m.
Sinclair plans to launch the products in France, Italy and Spain in early 2011 under the Kelo-Cote® name but with Sinclair branding. Primary target markets include pharmacies for domestic burns and mature scars, dermatologists, burns centres and hospitals. Kelo-Cote® has been endorsed previously by the model Katie Piper who previously suffered facial injuries after an acid attack. Since then through her charity, the Katie Piper Foundation, she has campaigned to help people live with burns and scars. Katie Piper said: "Kelo-Cote® has been a key part of the management of my facial scars over the past two years and I will continue to use it for the foreseeable future. It has made a considerable difference to my scars and I am delighted that the product is to become available to more people. Through the Katie Piper Foundation I am working to help people who have been through similar experiences to my own to recover their self esteem and confidence."
The exclusive rights to market Kelo-Cote® in three of Sinclair's core European markets is a new step in Sinclair's strategy to consolidate its presence in Europe and expand its woundcare franchise which started last year with the acquisition of the two branded Solvay drugs, Flammazine® and Flammacerium® . Sinclair Pharma's woundcare franchise is also expected to be bolstered with new internally developed products to be released later in 2011.
This multi-country deal marks a significant step forward in reinforcing ABT's continued expansion of Kelo-Cote® as the leading global brand for hypertrophic and keloid scars. Both companies aim to have a close relationship going forward where ABT will have first right of refusal to market outside the territories in this agreement any new products developed by Sinclair based on Kelo-Cote® 's patented technology and where both will consider other products to co-market in each other's territories.
Chris Spooner, Chief Executive Officer of Sinclair Pharma, said:
"Kelo-Cote® is a well-known brand and presents a great opportunity for Sinclair Pharma to leverage both its existing woundcare portfolio and its in-house technical expertise to develop line extensions. This acquisition is in accord with Sinclair's strategy to acquire and develop high quality, differentiated and well presented dermatology/wound care products.
Following the acquisition of Flammazine/Flammacerium and subsequent operational and financial restructuring we believe Sinclair Pharma now has a solid base from which to create a dynamic business, reinforce brand equity and increase shareholder value. Recent operational performance suggests the underlying business has already improved significantly, with a strong start to the new financial year."
Jeff Thompson, Chairman and Chief Executive Officer of ABT, Inc added that: "We are proud to be associated with Sinclair in these European markets and are confident that this transaction is strongly aligned with ABT's growth strategy for the region. Additionally, the combination of ABT's unique silicone technology and Sinclair's commercial and product development capabilities have the potential to enhance shareholder value for both companies and benefit patients around the world through cutting-edge existing and new products for scars and wounds."
Ends
For further information please contact:
Sinclair Pharma plc Tel: +44 (0) 1483 410 600Chris Spooner, CEOAlan Olby, CFOSinger Capital Markets Ltd Tel: +44 (0)20 3205 7500Shaun DobsonClaes Sp¥ngBiddicks, Financial Public Relations Tel: +44 (0)20 7448 1000Shane DolanNotes to Editors:
About Sinclair Pharma Plc www.sinclairpharma.com
Sinclair Pharma plc is an international, highly commercial, rapid-growth dermatology and oral care company providing and promoting high quality and differentiated products through growing sales and marketing operation that is present in France, Italy, Germany and Spain, and through an extensive marketing partner network across selected developed & emerging markets.
"Safe Harbor" Statement under the US Private Securities Litigation Reform Act of 1995: Some or all of the statements in this document that relate to future plans, expectations, events, performances and the like are forward-looking statements, as defined in the US Private Securities Litigation Reform Act of 1995. Actual results of events could differ materially from those described in the forward-looking statements due to a variety of factors.
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