EXHIBIT 99.1
CONTACT:
Chris A. Rallis Robert F. Amundsen, Jr.
President and Chief Operating Officer Chief Financial Officer
Triangle Pharmaceuticals, Inc. Triangle Pharmaceuticals, Inc.
(919) 493-5980 (919) 493-5980
www.tripharm.com www.tripharm.com
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FOR IMMEDIATE RELEASE:
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TRIANGLE PHARMACEUTICALS, INC. ANNOUNCES REACQUISITION OF
PRODUCT RIGHTS FROM ABBOTT LABORATORIES
MUTUAL DECISION TO BENEFIT R&D EFFORTS OF BOTH COMPANIES
DURHAM, NORTH CAROLINA, JULY 30, 2002 - Triangle Pharmaceuticals, Inc. (Nasdaq:
VIRS) today announced that it has reacquired from Abbott Laboratories full
product rights, including rights to all profits, for four drug candidates in
clinical development, including Coviracil(R) (emtricitabine) for HIV.
"We have moved aggressively to reacquire full rights to our products not only
because of our enthusiasm for the compounds but also because we believe this is
a win-win outcome for Triangle and Abbott," said Chris Rallis, President and
Chief Operating Officer of Triangle. "For Triangle, we believe that the
reacquisition of the rights to Coviracil, amdoxovir and clevudine, all currently
in clinical development, allows us to maximize the potential return on
investment for the portfolio."
"The agreement with Triangle to end our alliance will enable Abbott to focus
exclusively on our core areas of expertise and scientific success in HIV and
hepatitis C research, which will include the delivery of a third-generation,
breakthrough protease inhibitor and the discovery and development of effective
therapies for hepatitis C, a disease with a high co-morbidity with HIV," said
John Leonard, Vice President of Global Pharmaceutical Development of Abbott
Laboratories.
Triangle and Abbott entered into a series of collaborative agreements in 1999
related to the development and commercialization of Triangle's products,
including a profit-sharing arrangement whereby each company would receive
roughly half of the profits from the sales of these products. Significant terms
related to the reacquisition of rights include the following:
o Triangle reacquired all worldwide rights, which include the rights to
all profits from the sale of its drug candidates, including Coviracil
for the treatment of HIV and hepatitis B, amdoxovir for the treatment
of HIV, and clevudine for the treatment of hepatitis B.
o Triangle will no longer be required to provide Abbott a right of first
discussion on all future compounds which Triangle develops.
o Triangle will have access to two unsecured lines of credit totaling
$42.5 million, subject to certain terms and conditions. Upon approval
of Coviracil for the treatment of HIV in the United States, Abbott will
make available to Triangle an unsecured line of credit of $30 million.
Upon approval of Coviracil for the treatment of HIV in Europe, Abbott
will make available to Triangle an unsecured line of credit of $12.5
million. The available lines of credit may be reduced by certain types
of non-dilutive financing Triangle may receive from other parties.
o Under a new manufacturing and supply agreement, Abbott will manufacture
initial launch quantities of Coviracil, expected to be sufficient for
approximately the first year's sales, and will supply additional
material through July 31, 2005, at Triangle's request. Abbott will also
provide resources as needed to transfer the manufacturing process for
Coviracil to a third-party manufacturer.
o In exchange for the above rights, Triangle will forego rights to all
remaining milestone payments and the right to co-promote Abbott's HIV
product, Kaletra(R), in the United States.
o Abbott will also receive a 1% royalty on the first $200 million of
cumulative sales of Coviracil for the treatment of HIV.
o Abbott's representative on Triangle's Board of Directors will resign
and Abbott's right to purchase additional Triangle shares will
terminate.
"Triangle's reacquisition of these product rights allows us to optimally move
our antiviral development programs forward," said Rallis. "Our four drug
candidates in active clinical development - Coviracil for HIV, Coviracil for
hepatitis B, amdoxovir and clevudine - represent the cornerstone of a bright
future for Triangle. All four programs continue to show encouraging clinical
progress."
A conference call to discuss the information contained in this press release
will be held on Wednesday, July 31, 2002 at 11:00 a.m. EDT. Interested parties
in the U.S. may join the call toll free by dialing 1-877-679-9049. International
callers may join the call by dialing 1-952-556-2803. The call will be Webcast on
the Triangle Pharmaceuticals website at www.tripharm.com and archived for replay
on our site for one week after the call.
Triangle Pharmaceuticals, Inc. is a specialty pharmaceutical company engaged in
the development of new antiviral drug candidates, with a particular focus on
therapies for the human immunodeficiency virus (HIV) and the hepatitis B virus.
Triangle's proprietary drug candidates under development for HIV and/or
hepatitis include Coviracil(R) (emtricitabine), amdoxovir (formerly DAPD), and
clevudine (formerly L-FMAU). Triangle is also developing immunotherapies for
hepatitis B in collaboration with Dynavax Technologies Corporation (Dynavax)
utilizing Dynavax' immunostimulatory sequence (ISS) technology. More information
about Triangle's portfolio, management and product development strategy is
available on Triangle's website.
Statements in this press release that are not historical facts are
forward-looking statements and are subject to numerous risks and uncertainties,
including the risk that we may not be able to obtain adequate funding or support
to optimally progress our development programs. Moreover, future events or
changes in our drug development strategies may impact the timing and degree of
actual spending. Additionally, other risks include the fact that clinical trials
for our drug candidates may not proceed as planned and regulatory submissions
for those drug candidates may be delayed, the Company may be unable to
successfully complete pivotal clinical trials or its trials could be halted or
terminated by regulatory authorities, its regulatory submissions may be delayed,
its inability to commercialize amdoxovir and ISS-based therapies due to patent
rights held by third parties, its ability to obtain additional funding
(including the ability to access the Abbott lines of credit), its ability to
obtain patent protection and required regulatory approvals for its drug
candidates, the development of competitive products by others, the cost of
coactive therapy and the extent to which coactive therapy achieves market
acceptance, the Company's success in identifying new drug candidates, acquiring
rights to the candidates on favorable terms and developing any candidates to
which the Company acquires any rights, and that the Company's collaborations
with third parties may not prove successful. These and other risks are discussed
in detail from time to time in the Company's filings with the Securities and
Exchange Commission. As a result of these and other risks and uncertainties,
actual results may differ materially from those predicted in this press release.
The Company disclaims any obligations to update any forward-looking statements
in this press release.