TORONTO, Oct. 22 /PRNewswire-FirstCall/ -- Dimethaid Research Inc. (TSX: DMX) and Solvay Pharma Inc. today announced they have entered into a non- binding letter of intent relating to their agreement to market and sell Pennsaid(R) in Canada. Based on this agreement, Solvay has agreed to withdraw its notice of termination, proposed to take effect December 10, 2004, subject to entering into a definitive agreement.
Under the new terms, Solvay will assume primary responsibility for Pennsaid sales and promotion in Canada. Dimethaid will continue to participate in Canadian marketing initiatives and will retain full responsibility for managing the product's international marketing, distribution, licensing, and business development. All Dimethaid Canadian Pennsaid sales activities will cease effective November 1, 2004. Final terms of the agreement are currently under negotiation.
"We are confident this renewed relationship will help position Pennsaid strongly in the Canadian marketplace," said Daniel H. Chicoine, chairman of the board for Dimethaid. "Now more than ever, Canadians are looking for a safe, effective treatment for arthritis pain. Solvay has the expertise and breadth of team to execute a strong marketing program to ensure that health professionals know about Pennsaid."
In conjunction with the renewed agreement with Solvay, Dimethaid also today announced that it was eliminating its sales force of 38 people. "We regret having to take this step, but the duplication of efforts by the two sales forces was not in the best long term interest of Dimethaid," Mr. Chicoine said.
Dimethaid Research Inc. is a publicly traded, Canadian, pharmaceutical company headquartered in Markham, Ontario, with manufacturing facilities in Varennes, Quebec and Wanzleben, Germany. The company develops and commercializes targeted therapeutic drugs designed to produce minimal side effects. Dimethaid's two technology platforms focus on transcellular drug delivery and immune system regulation. Products are aimed at expanding treatment options in rheumatology, dermatology, oncology, immunology, and the therapeutic management of chronic viral infections. For more information, please visit http://www.dimethaid.com/.
Solvay Pharma Inc. is a research-based pharmaceutical company, active in the therapeutic areas of cardiology, gastroenterology, mental health, men's health and a select group of specialized markets. It is headquartered in Markham, Ontario with a manufacturing facility in Victoriaville, Quebec. Solvay Pharma Inc. is a part of the internationally oriented Solvay Pharmaceuticals organization whose core activities consist of discovering, developing and manufacturing medicines for human use. Solvay Pharmaceuticals is a member of the worldwide Solvay Group of chemical and pharmaceutical companies, headquartered in Brussels, Belgium. For further information please see http://www.solvaypharma.ca/.
This release may contain forward-looking statements, subject to risks and uncertainties beyond management's control. Actual results could differ materially from those expressed here. Risk factors are discussed in the Company's annual information form filed with the securities commissions in each of the provinces of Canada. The Company undertakes no obligation to revise forward-looking statements in light of future events.
Dimethaid Research Inc.
CONTACT: Jodi Peake, Dimethaid Research Inc., Director, InvestorRelations, Tel: (905) 415-1446 ext. 257, email@example.com;Sheila McEachen, Cohn & Wolfe, Tel : (416) 924-5700 ext. 4069,Cell : (416) 707-0414, Sheila_mceachen@ca.cohnwolfe.com