THURSDAY JULY 9, 12:36 PM EASTERN TIME
COMPANY PRESS RELEASE
SOURCE: PARACELSIAN, INC.
PARACELSIAN ANNOUNCES STRATEGIC ALLIANCE WITH R.P. SCHERER
ITHACA, N.Y., July 9 /PRNewswire/ -- (Nasdaq: PRLN - news) Paracelsian, Inc.
(http://www.paracelsian.com) announced today that it has signed a definitive
agreement with R.P. Scherer (NYSE: SHR - news) that establishes R.P. Scherer
North America as Paracelsian's exclusive agent for the marketing and
distribution of its BioFIT Certification program. In addition, the Agreement
provides for collaboration between the two companies in the development of new
dietary supplements and OTC products.
R.P. Scherer (http://www.rpscherer.com), is a leading manufacturer of herbal and
other dietary supplement products, and the world leader in soft gel technology
and drug delivery systems.
The agreement between Paracelsian and R.P. Scherer covers the North American
market and calls for negotiation of a worldwide agreement within 90 days, on
terms and conditions essentially equivalent to those in the North American
agreement. Revenues to Paracelsian from this agreement include development fees,
certification fees, and minimum required royalty payments.
"This represents significant value to Paracelsian and its shareholders", stated
Bernie Landes, Paracelsian's President and CEO. "The agreement covers the cost
of developing and running the BioFIT Certification Program, while also providing
a continuing, growing, and highly profitable royalty stream," he added.
"The past several months have been particularly difficult because of the
pressure to meet the expectations of stockholders to complete a deal with a
major corporate partner, thereby validating our new corporate strategy.
Fortunately, we were able to proceed in a prudent manner to reach a deal with
the partner that we believe will maximize value for Paracelsian shareholders.
This partnership supersedes any prior discussions with other potential partners
in the degree of credibility and value it adds to Paracelsian's core
technology," Landes concluded.
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Under the terms of the North American agreement, Paracelsian will initially
complete development of 10 BioFit assay systems. R.P. Scherer will receive
exclusive BioFit marketing and distribution rights. R.P. Scherer will pay
Paracelsian fees concurrent with the completion of BioFIT assay systems,
certification of products, and completion of agreements with new customers. The
terms of the agreement call for Paracelsian to receive royalties on the sale of
all BioFIT certified products and the establishment of minimum royalty payments.
In addition to these fees, Scherer agrees to pay Paracelsian a per batch fee for
ongoing certification of products on a batch to batch basis. These fees
represent a significant additional source of revenue to Paracelsian.
"R.P. Scherer is pleased to conclude this agreement with Paracelsian. The
exclusive right to produce and market herbal products under the BCP further
strengthen R.P. Scherer's leadership in the herbal category, today and in the
future," said David Heyens, VP of R.P. Scherer's Nutritional Division. "We are
excited to promote this program and are committed to an aggressive marketing
program."
R.P. Scherer Corporation an international developer and manufacturer of drug
delivery systems, is the world's largest producer of soft gelatin capsules
("soft gels"). The company is currently developing and commercializing a variety
of advanced drug delivery systems. The company's proprietary drug delivery
systems improve the efficacy of drugs by regulating the dosage so as to ease
administration, increase absorption, enhance bioavailability and control the
time and place of release. The company operates a global network of 19
facilities in 12 countries.
Paracelsian is a unique biotechnology company whose business centers on the
development and application of functional bioassays. These assays are used for
Quality Assurance of herbs, botanicals and other dietary supplements, in the
development of dietary supplement, OTC and pharmaceutical products, and in
monitoring environmental toxins and identifying carcinogens.
Notice: This news release may contain forward-looking statements.
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Investors are cautioned that such forward-looking statements involve risks and
uncertainties, including but not limited to, the results of research and
development efforts, the effect of regulation by the United States Food and Drug
Administration and other agencies, the impact of competitive products, product
development commercialization and technological difficulties, and other risks
detailed in the Company's periodic reports filed with the Securities and
Exchange Commission.
No forward-looking statement is a guarantee of future results or events, and one
should avoid placing undue reliance on such statements.
SOURCE: Paracelsian, Inc.
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