12th Nov 2009 07:00
Sinclair Pharma plc Sinclair Pharma and Orapharma mutually agree to terminate US distribution agreement for Decapinol(R) mouth rinse
12 November 2009, Godalming, UK: Sinclair Pharma plc (the "Company" or "Sinclair": SPH:L), the international specialty pharma company, today announces that it has mutually agreed with Orapharma Inc to terminate with immediate effect their distribution agreement for Decapinol mouth rinse, known as Impede, in the US. Decapinol is an innovative product for treating gingivitis and plaque and preventing periodontitis. Orapharma, a Johnson & Johnson subsidiary, held US rights to the niche market of sale and promotion to dental professionals.
The effect of this termination is that Sinclair is immediately free to license and reposition the product for a much larger target market, including the over-the-counter (OTC) market in the US. The agreement with Orapharma effectively meant the product would not reach the OTC market for some years. Sinclair is in discussions about the opportunities and is confident that the long term benefit to shareholders can outweigh any short-term loss of potential milestone income from Orapharma.
Incoming CEO of Sinclair Pharma, Chris Spooner, commented:
"The refinancing of our business allows Sinclair to take a strategic view of its operations with less reliance on one-off licensing income and greater focus on ongoing revenues and profitability. There is considerable interest in Sinclair's Decapinol rinse and related dental products in the US and we will now be able to negotiate an agreement that will help maximise its potential more broadly by allowing us to quickly penetrate the US market via both the OTC as well as the specialist dental prescriptions."
Sinclair recently announced that it entered into new debt facilities of 9 million and as planned, the proposed equity fundraising will be scaled back to 18 million. The funds will be used to pay for the acquisition, if approved by shareholders, for the products from Solvay Pharmaceuticals as announced on 12 October 2009, as well as for working capital purposes for the Company.
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For further information please contact:
Sinclair Pharma plc Tel: +44 (0) 1483 410 600Chris SpoonerDr Michael FlynnJerry Randall
Singer Capital Markets Ltd Tel: +44 (0)20 3205 7500 Shaun Dobson Claes Spang
Capital MS&L Tel +44 (0)20 7307 5340Mary ClarkAnna Mitchell
About Sinclair Pharma Plc www.sinclairpharma.com
Sinclair Pharma plc is an international specialty pharmaceutical company providing solutions to treat dermatological, oral care and gynaecological diseases through advanced surface technology and innovative delivery systems. It has a growing sales and marketing operation that is already present in France, Italy, Spain and Portugal, and a complementary marketing partner network that spans more than 90 countries.
Decapinol
Decapinol(R) is an innovative range of treatments that helps treat gingivitis and prevent periodontitis. Delmopinol, a surface-active agent is the key ingredient in Decapinol. It is able to form a cationic barrier that reduces surface tension on the teeth and gums, preventing microbial adhesion and colonisation on their surface, thus hampering the adherence of bacteria and significantly slowing the formation of new plaque without adversely altering the oral bacterial flora. Decapinol is proven to reduce gingivitis and bleeding gums by 36% more than placebo and oral hygiene and in clinical trials had fewer side effects and was better tolerated than the gold standard - chlorhexidine.
Decapinol gel can reduce gingivitis and mild to moderate periodontitis acting on plaque adhesion and consequently on gingival inflammation and it is safe and well-tolerated.
Decapinol is available in seven countries: Greece, Italy, Slovakia, Finland, Cyprus, Israel and Norway.
"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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