SPRING VALLEY, N.Y., Nov. 6 /PRNewswire-FirstCall/ -- Par Pharmaceutical, Inc., the principal subsidiary of Pharmaceutical Resources, Inc. , today announced that it has entered into a joint development agreement with Nortec Development Associates, Inc., a Glatt Technologies company. The companies will collaborate on the development of several controlled release generic and branded products over the next four years. Nortec/Glatt is recognized for its ability to develop complex controlled release formulations for generic and branded pharmaceutical products. Its CPS(TM) Technology represents a new proprietary drug delivery system for the development and production of drug pellets with controlled release properties.
Par and Nortec/Glatt entered into their initial product agreement in 2002. This collaboration was designed to utilize Nortec/Glatt's unique CPS/Orocel(TM) Technology in the development of controlled release drugs. Based on the initial success of the products originally licensed, Par has elected to expand its collaboration with Nortec/Glatt.
"Par is especially pleased to enter into an expanded relationship with a company we view to be an ideal partner," said Scott Tarriff, president and chief executive officer of PRX. "Extensive experience, a remarkably talented development team, and a reputation for innovation place Glatt among the premier sustained release technology companies in the world. Access to this technology will enable us to target generic and branded products for commercialization that are difficult to formulate and challenging to develop. Importantly, this agreement provides Par with another sustainable platform for developing innovative products with longer life cycles."
"We look forward to working closely with Par to make our new partnership a success," said Ken Olsen, founder and chief executive officer of Nortec. "This collaboration is based on complementary skills and expertise which we fully expect to be of mutual benefit. For Nortec/Glatt, this alliance provides an opportunity to participate more fully in a future stream of innovative and successful pharmaceutical products." Reiner Nowak, president and chief executive officer of the Glatt Group, also expressed his great satisfaction that Par will be the first company to develop and market products utilizing the innovative CPS/Orocel(TM) Technology.
Under the terms of the new agreement, Par will pay a product licensing fee and fund the cost of bio-studies and any associated legal expenses. Par will be responsible for the marketing and sales of all successfully developed products. Glatt and Par will both contribute the necessary research and development, and manufacturing personnel to the alliance. At Par's discretion, Glatt may also be responsible for some product manufacturing. In return, Par will receive the significant majority of the net profits generated by all marketed products with Nortec/Glatt receiving the balance. At the end of four years, Par has the right to purchase Nortec Development, Inc. under terms outlined in the agreement.
The collaboration of Nortec, Glatt and Par will create a new alliance with extensive expertise and capabilities in the research, development and manufacturing of branded and generic pharmaceutical products utilizing sustained, delayed and modified release technologies. As a result of this agreement, Par will have full access to Glatt's CPS(TM) Technology for product development and manufacturing. Nortec/Glatt, located in Ramsey, New Jersey, is also considered the leader in fluid bed controlled release-coating technology for the pharmaceutical and related industries. A significant percentage of currently marketed generic and branded sustained release products utilize Glatt's technology.
Pharmaceutical Resources, Inc., a holding company, develops, manufactures, and distributes generic pharmaceuticals through its wholly owned subsidiary, Par Pharmaceutical. Through its FineTech unit, PRX also develops and utilizes synthetic chemical processes to design and develop intermediate ingredients used in the production of finished products for the pharmaceutical industry. PRX currently manufactures and distributes over 170 products representing various dosage strengths of 70 drugs. For press release and other Company information, visit http://www.parpharm.com/.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. To the extent any statements made in this news release contain information that is not historical, these statements are essentially forward-looking and are subject to risks and uncertainties, including the difficulty of predicting FDA filings and approvals, acceptance and demand for new pharmaceutical products, the impact of competitive products and pricing, new product development and launch, reliance on key strategic alliances, uncertainty of patent litigation filed against us, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission, such as the Company's Form 10-K, Form 10-Q, and Form 8-K reports.
Par Pharmaceutical, Inc.