FOR IMMEDIATE RELEASE
Jim O'Shea Noonan/Russo Communications, Inc.
Chairman, President, & CEO 212-696-4455
Sam Nickerson Kristen Hammer (media) 249
Investor Relations Belinda Brouder-Hayes (investor) 224
Bioject Medical Technologies Inc. Email: news@noonanrusso.com
503-639-7221
BIOJECT REPORTS SALE OF ITS GLUCOTRAXTM TECHNOLOGY
-Company will focus on core needle-free business-
PORTLAND, OR - July 2, 1999 - Bioject Medical Technologies Inc. (Nasdaq: BJCT),
the leading manufacturer of jet injection technology for needle-free drug
delivery today announced that Marathon Medical Technologies Inc., Bioject's
joint venture with Elan Corporation, plc (NYSE: ELN), has entered into an
agreement to sell the venture's license and other rights to the GlucoTrax(TM)
blood glucose monitoring technology to Medisys, plc. (AIM: MDY.L). Medisys is a
U.K.-based medical device company which has developed and commercialized devices
to monitor blood glucose levels.
In accordance with the terms of the agreement, Bioject and Elan will receive $4
million for the sale of the license and related intellectual property rights and
certain fixed assets of the joint venture. Bioject had an 80.1 percent ownership
stake in the joint venture and estimates the receipt of approximately $2.5
million in net cash proceeds. In addition, Marathon will receive royalties on
future revenues, if any, generated by the GlucoTrax technology.
"Choosing to sell the blood glucose monitoring technology was difficult," said
Jim O'Shea, Bioject's chairman, president and CEO. "While we would have liked to
continue to develop GlucoTrax, pursuing simultaneous development of both the
blood glucose monitor and our next-generation needle-free injection systems
placed an excessive burden on our capital resources. Selling the technology
significantly reduces the company's current cash requirements and generates
additional cash reserves to support the core needle-free side of our business."
Commenting on Bioject's near-term strategy, Mr. O'Shea added, " We are very
excited about the opportunities available to Bioject. There is growing interest
in Bioject's needle-free injection technology as a potentially enabling drug
delivery method, as evidenced by the use of the Biojector(R) 2000 in recent
human clinical studies at Stanford University and at the U.S. Naval Medical
Research Center. We will continue to develop the needle-free business through
the establishment of corporate alliances to capitalize on market opportunities
and enhance our commercial presence." -more- Bioject Medical Technologies, Inc.
located in Portland, Oregon is an innovative developer and manufacturer of drug
delivery systems. The company's advanced injection system, the Biojector
2000, is a high-speed delivery system designed to inject medication without a
needle. The Biojector employs compressed carbon dioxide (CO2) as a power source
to eject medication through a tiny orifice in a fraction of a second,
effectively penetrating the skin. Using this technology to administer injections
virtually eliminates the risk of contaminated needlestick injuries and resulting
blood-borne pathogen transmission, a major concern throughout the healthcare
industry. The Biojector 2000 has received the Seal of Acceptance from the
Alliance of Children's Hospitals, Inc.
This press release contains forward looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including statements
concerning the company's products as a potentially enabling drug delivery method
and continued growth of the company's needle-free business segment through
future corporate alliances. Forward looking statements such as these involve
known and unknown risks, uncertainties and other factors, any of which may cause
the actual results, performance or achievements of the company, or industry
results, to be materially different from any future results, performance, or
achievements expressed or implied by the forward looking statements. These
risks, uncertainties and other factors include, without limitation, the risk
that research and development efforts of the company or others will not produce
desired results, dependence on the continued performance of strategic corporate
partners, the company's need for additional financing and uncertainties related
to i.) the time required to complete research and development, ii.) obtaining
necessary clinical data and regulatory clearances, iii.) successfully attracting
additional strategic corporate partners and iv) successfully executing
revenue-generating agreements with those additional strategic partners. Readers
of this press release are referred to the company's filings with the Securities
and Exchange Commission, including the company's Annual Report on Form 10-K for
the year ended March 31, 1999 for further discussions of factors which could
affect future results.
Forward-looking statements are based on the estimates and opinions of management
on the date the statements are made. The Company assumes no obligation to update
forward-looking statements if conditions or management's estimates or opinions
should change.
Editor's Note: This press release can also be found on
http://www.noonanrusso.com and www.bioject.com.
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