Exhibit 99.1
DURAMED EXPANDS MARKETING ALLIANCE
WITH SOLVAY PHARMACEUTICALS, INC.
Solvay Pharmaceuticals to Lead Marketing of
Cenestin Synthetic Conjugated Estrogens
Solvay Pharmaceuticals to Assume Advertising, Sales Promotion
Costs for Cenestin as Duramed Recovers Cenestin Investment
10-Year Agreement to Act as Catalyst for
New Duramed Growth Opportunities
Solvay America Provides Loan Guarantee
CINCINNATI, OH AND MARIETTA, GA (MARCH 1, 2000) - DURAMED
PHARMACEUTICALS, INC. (NASDAQ: DRMD) AND SOLVAY PHARMACEUTICALS,
Inc. today announced they have entered into a 10-year marketing
agreement whereby the two companies will share in the marketing
and profits of Duramed's Cenestin (registered trademark)
(synthetic conjugated estrogens, A) Tablets.
"This alliance deepens the existing co-promotion agreement
between Duramed and Solvay Pharmaceuticals," said Duramed
Chairman and Chief Executive Officer E. Thomas Arington. "This
is a highly significant beneficial alliance and gives Duramed
renewed strength and a fresh start as we work with Solvay
Pharmaceuticals to make Cenestin (registered trademark) top of
mind among physicians and consumers."
"Since the alliance between Solvay Pharmaceuticals and Duramed
Pharmaceuticals began, total prescriptions for Cenestin
(registered trademark) from OB/GNYs have increased almost five-
fold," said David A. Dodd, Solvay Pharmaceuticals President and
Chief Executive Officer. "The expansion of our co-promotion
alliance is a reaffirmation of our shared commitment to offer
women a variety of sale and effective hormone replacement therapy
treatments."
Effective January 1, 2000, Solvay Pharmaceuticals, the second
largest pharmaceutical company in the U.S. hormone replacement
therapy market, assumed responsibilities for the marketing of
Cenestin (registered trademark). This responsibility also
includes assuming all advertising and sales promotion expenses
for Cenestin (registered trademark), including all expenses
associated with Duramed's sales force. During this initial stage
of the marketing agreement, Solvay Pharmaceuticals will receive
80 percent of the gross profit from Cenestin (registered
trademark) and Duramed will receive 20 percent of Cenestin
(registered trademark)'s gross profit until Solvay
Pharmaceuticals has recovered all of the ongoing advertising and
marketing expenses and Cenestin (registered trademark) becomes an
income-producing product.
The agreement then moves into a second stage, where Duramed will
receive 80 percent of Cenestin (registered trademark)r net profit
dollars and Solvay Pharmaceuticals will receive 20 percent, until
Duramed recovers the $38 million it invested in Cenestin
(registered trademark) since the product was approved in March
1999.
Upon completion of these two stages, when both Duramed and Solvay
Pharmaceuticals have recovered the specified investments, the two
companies each will receive 50 percent of Cenestin (registered
trademark) net profit dollars on a moving-forward basis.
Duramed also granted Solvay Pharmaceuticals a worldwide exclusive
license to Cenestin (registered trademark) outside the United
States. The global rights to Cenestin (registered trademark)
include all countries except Puerto Rico and Eastern Europe
countries that are currently covered by other established
marketing partners. Solvay Pharmaceuticals and Duramed will
enter into mutually agreed upon license and supply agreements for
each country as opportunities arise. Solvay Pharmaceuticals has
also been granted the option to an exclusive worldwide license to
Verapamil SR, a calcium channel blocker for the treatment of
hypertension, which has been previously approved by the FDA.
This agreement deepens an alliance Solvay Pharmaceuticals and
Duramed established in October 1999 when the two companies
jointly promote Duramed's Cenestin (registered trademark)
(synthetic conjugated estrogens, A) Tablets and Solvay
Pharmaceuticals' Estratest (registered trademark)/Estrates
(registered trademark) H.S. Tablets (esterified estrogens and
methyltestosterone) and Prometrium (registered trademark)
(progesterone) Capsules*. Starting October 11, 1999, an expanded
national sales force of approximately 300 Duramed and Solvay
Pharmaceuticals sales representatives began calling on
obstetricians and gynecologists across the United States,
providing product information, samples and patient education
materials.
SOLVAY AMERICA, INC. PROVIDES LOAN GUARANTEE FOR DURAMED
In addition, Solvay America, Inc. the parent company of Solvay
Pharmaceuticals, Inc., will provide a 10-year, $20 million loan
guarantee for Duramed through The Provident Bank. Proceeds from
the loan will be used to payoff an existing long-term loan of
$7.7 million leaving $6.65 million available to pay Schein
Pharmaceutical the balance due under a settlement agreement
signed in October 1999 and $5.65 million for Duramed's working
capital purposes.
On October 22, 1999, Duramed announced it had reached a
settlement with Schein Pharmaceutical, Inc. pertaining to
litigation between Duramed and Schein related to a 1992 agreement
regarding Cenestin (registered trademark). Under terms of the
settlement agreement, Duramed made an initial $7.5 million
payment to Schein in October 1999 and additional payments in 2000
reducing the balance due to $6.65 million. Per the terms of the
settlement agreement Duramed may choose to make the final payment
in cash or Schein may require the final payment to be made in
cash or Duramed common stock at the lesser of the closing price
of the stock on October 22, 1999 ($8.75) or the closing price on
the date Schein requests settlement in stock. Duramed and Schein
have agreed the $6.65 million available to pay Schein will be
held in escrow until final determination is made regarding
ultimate payment in stock or cash.
Arington comment that Duramed has had a relationship with Provide
Bank dating back to 1985. "Provident has been a strong supporter
of Duramed and we're pleased they are a part of this financing."
ABOUT SOLVAY PHARMACEUTICALS, INC.
Solvay Pharmaceuticals, Inc., based in Marietta, Ga., is a
research-based pharmaceuticals company, active in the therapeutic
areas of cardiology, gastroenterology, mental health and women's
health. Solvay Pharmaceuticals is the second largest
pharmaceutical company in the U.S. hormone replacement therapy
market, having advanced from its previous standing of sixth in
the industry in 1996. It is a member of the worldwide Solvay
Group of chemical and pharmaceutical companies, headquartered in
Brussels, Belgium. The Group's members employ some 33,000 people
in 46 countries. Its 1999 revenue worldwide was 7.9 billion EUR
($7.9 billion) from four operating sectors: Chemicals, Plastics,
Processing, and Pharmaceuticals. Additional information about
the Group can be found on the World Wide Web at
http://www.solvay.com.
_____________________
ABOUT DURAMED PHARMACEUTICALS, INC.
Duramed Pharmaceuticals, Inc. develops, manufactures and markets
prescription drug products. The company's business strategy
emphasizes products with attractive market opportunities and
potentially limited competition due to technological barriers to
entry, focusing on women's health and the hormone replacement
therapy market.
The company's stock is traded on Nasdaq using the symbol DRMD.
Additional information about the company can be found on the
World Wide Web at http://www.duramed.com and www.cenestin.com.
______________________ ________________
*Estratest and Prometrium are trademarks of Solvay
Pharmaceuticals.
Like all estrogen drug products, CENESTIN (registered trademark),
and ESTRATES (registered trademark)/ESTRATEST (registered
trademark) H.S. Brand Tablets should not be used in women with
known or suspected pregnancy, breast cancer, or estrogen-
dependent neoplasia, undiagnosed abnormal genital bleeding,
active thrombophlebitis, or thromboembolic disorders. Estrogens
have been reported to increase the risk of endometrial carcinoma
in postmenopausal women with an intact uterus. The most common
adverse events reported in clinical experience with CENESTIN
(registered trademark) included headache, insomnia, asthenia,
nervousness, paresthesia, and depression. The most common
adverse events reported with ESTRATEST (registered
trademark)/ESTRATEST (registered trademark) H.S. Brand Tablets
included those typical of estrogen therapy (such as breast
tenderness, headache, nausea, edema and abdominal pain) and of
androgen treatment (including hair loss, acne and hirsutism).
Common side effects of PROMETRIUM (registered trademark) Capsules
are breast tenderness, dizziness, abdominal bloating, and vaginal
discharge. For additional information on CENESTIN (registered
trademark), ESTRATEST (registered trademark) Brand Tablets or
PROMETRIUM (registered trademark) Capsules, please see full
prescribing information.
The Securities and Exchange Commission (SEC) encourages companies
to disclose forward-looking information so that investors can
better understand a company's future prospects and make informed
investment decisions. Due to changing market conditions, product
competition, the nature of product development and regulatory
approval processes, the achievement of forward-looking statements
contained in this press release are subject to risks and
uncertainties. For further details and a discussion of these
risks and uncertainties, see Duramed's SEC filings, including its
annual report on Form 10-K/A.