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Exhibit 99.1
For Immediate Release
SONUS PHARMACEUTICALS AND ABBOTT LABORATORIES
EXPAND ALLIANCE FOR ECHOGEN(R) TO INTERNATIONAL TERRITORIES
EchoGen(R) Alliance Extended to include Europe, Canada, Latin America,
Middle East, Africa, and certain Asia/Pacific Rim Countries
New York, N.Y., October 7, 1996 - SONUS Pharmaceuticals, Inc. (NASDAQ NNM:SNUS)
and Abbott Laboratories (NYSE:ABT) announced today the signing of a second
agreement for EchoGen(R), a proprietary ultrasound contrast agent developed by
SONUS, that will expand Abbott's licensed territory to include the following:
Europe, Latin America, Canada, Middle East, Africa, and certain Asia/Pacific Rim
countries. In May, SONUS and Abbott signed a strategic alliance for EchoGen(R)
in the United States. Daiichi Pharmaceutical Co., Ltd. has the rights to Echo
Gen(R) in Japan and nine other Pacific Rim countries.
Under the agreement, SONUS has primary responsibility for clinical development
and regulatory affairs for EchoGen(R) in the European Community (EC). Abbott
Laboratories assumes primary responsibility for all marketing, sales, and
technical support of EchoGen(R) throughout the international territory, and all
necessary clinical development and regulatory affairs in the international
territory outside the EC. SONUS has retained potential co-promotion rights to
EchoGen(R) in the major countries of the international territory, which may
arise under certain circumstances.
Abbot has agreed to pay SONUS $34.6 million in license and milestone payments
for the International territory, a portion of which will be credited against
future royalties. In addition, Abbott has agreed to pay SONUS a royalty that
ranges from 36% to 42% of EchoGen(R) net sales based on annual sales. The
royalty rates include the cost of the product. The agreement spans the life of
the patents relating to EchoGen(R) in the countries of the territory.
"Our alliances with Abbott and Daiichi now cover 100% of the worldwide market
for EchoGen," said Steven C. Quay, M.D., Ph.D., founder, president and CEO of
SONUS. "We are extremely fortunate to have these to marketing powerhouses to
launch EchoGen. SONUS will use the $97.6 million dollars in total potential
license fees and milestone payments and the $15.0 million dollars in related
equity purchases from these agreements primarily to continue to focus on EchoGen
clinical development and regulatory approval, and on new products."
"Our sales and marketing expertise, combined with SONUS cutting-edge technology,
will help us quickly establish a strong position in the diagnosis imaging
market," said Robert L. Parkinson, senior vice president, international
operations, Abbott Laboratories.
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SONUS announced on September 5, 1996 that a New Drug Application for EchoGen(R)
had been submitted to the U.S. Food and Drug Administration. SONUS plans to file
an application for approval of EchoGen(R) with the European Medicines Evaluation
Agency by year-end.
EchoGen(R) is the first fluorocarbon-based ultrasound contrast agent, and the
first such agent being investigated for broad clinical utility in both
cardiology and radiology applications. Contrast agents are administered to
patients immediately prior to imaging procedures to enhance the images
(pictures) being taken.
Ultrasound is one of the most widely used and cost-effective diagnostic imaging
tests, ideally suited to today's cost conscious health care environment. There
are over 100 million ultrasound studies to conducted annually worldwide -
greater than the number of all x-ray angiography, CT, MRI and nuclear medicine
procedures combined. Combined contrast agent sales from these other imaging
modalities exceed $3 billion annually worldwide. Ultrasound is currently the
only imaging modality without a contrast agent for broad clinical use. Ann
effective contrast agent should improve the accuracy and clinical utility of
ultrasound, thus gaining use in many of the current ultrasound procedures while
expanding the use of the technology to procedures where ultrasound is not
currently being used.
Certain of the statements made in this news release are forward looking. As
discussed in SONUS' annual report on Form 10-K dated March 29, 1996 EchoGen(R)
will require regulatory approval, which approval is subject to certain
regulatory requirements and can be lengthy, and market acceptance of EchoGen(R)
will depend on a number of factors, including safety, efficacy and ease of
administration, and the presence of competitive imaging products or
technologies. In addition, to the Company is dependant on collaborative partners
for a variety of activities, and if the agreements with such partners are
terminated, or if the collaborations are not successful, the Company will not
receive scheduled license, milestone, and royalty payments, and will be required
to identify alternative partners.
SONUS Pharmaceuticals, based in Bothell, Washington, is engaged in thee research
and development of proprietary contrast agents for use in ultrasound imaging.
The Company's products are being investigated to improve the management of heart
disease, cancer, infectious disease and other debilitating conditions.
Contacts: SONUS Pharmaceuticals Abbott Laboratories
Steven C. Quay Joseph Daab
(206) 487-9500 (847) 937-3357
NOTE: SONUS Pharmaceuticals' press releases are available via PR Newswire's
Company News on Call service. To receive previous SONUS press releases via fax,
dial 1-800-758-5804, ext. 108377. SONUS releases also can be accessed on the
Internet at http://www.prnewswire.com/ or at
http://www.shareholdernews.com/snus.
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