BioProgress plc Announces Acquisition of DMPL
DMPL is a profitable French specialist OTC sales and marketing business focused on the promotion of neutraceuticals and parapharmaceuticals including a range of slimming products under the brand MINCI DIET. DMPL achieved sales of EUR568,000 in 2006 and currently distributes mainly in Paris and the surrounding districts. The market size for OTC products in France is approximately EUR2.6bn (Datamonitor), of which EUR35 million is estimated to be for the slimming market. Approximately a third of the population in France is estimated to be potential users of slimming and appetite suppressant products.
BioProgress has developed a number of OTC products including line extensions of prescription only brands during the past 12 months. The Group has also, through its BioTec Films division, developed a number of OTC appetite suppressant and slimming support products for launch in both the US and EU markets. The acquisition of DMPL provides the Group with a distribution channel separate from its external partners for the OTC market in France. BioProgress intends to grow organically this OTC division throughout France as part of the Group's overall strategy to expand its OTC capability both as distributor of high margin niche proprietary developed products and branded products for its partners.
Richard Trevillion, Chief Executive Officer, BioProgress plc, said:
"The acquisition of DPML is the latest development of the Group's drive into the growing niche OTC markets for preventative and curative therapies where compliance and effectiveness of products are key issues. The Group's commercialised systems are well positioned both to differentiate and to improve products in this exciting market category. Consequently we expect to see strong growth in this area of the Group's business."
Jean-Francois Sfarti, Head of Dexo France, said:
"I am delighted to welcome the DMPL team into the Dexo business. The market for both slimming products and prescription medicine to OTC switches is growing substantially in France in a similar fashion to other Western markets. DMPL's expertise will assist both the Group's own product drive and partner development programmes. "
For further information:
BioProgress Plc + 44 (0) 20 7098 9881 Richard Trevillion, CEO Steve Martin, CDO Hiral Patel, CFO
Buchanan Communications + 44 (0) 20 7466 5000 Rebecca Skye Dietrich/Mark Court
About BioProgress
BioProgress plc is an innovative specialty pharmaceutical and healthcare business based around its platform technologies in polymer and film systems. Listed on London's AIM in May 2003 and on US NASDAQ in October 2004, the company has over 80 patents granted or in application within 24 patent families and has product development agreements and strategic alliances with several global companies. As a vertically integrated business, BioProgress has acquired sales and marketing resources within Europe and the US as a launch mechanism for its own pharmaceutical products. The business continues to develop innovative delivery mechanisms using its XGEL™ polymer technology, replacing the need to use animal-derived gelatine in pharmaceutical and healthcare products. For further information please go to www.bioprogress.com
Forward-Looking Information.
The Ordinary Shares of BioProgress plc are registered under the US Securities and Exchange Act of 1934. To the extent that this announcement contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, this paragraph applies. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements. The forward-looking statements in this release include statements addressing future financial and operating results and the timing and benefits of the reorganisation. Detailed information about factors pertinent to the business of the company that could cause actual results to differ is set forth in the Company's filings with the Securities and Exchange Commission. The Company is under no obligation to (and expressly disclaim any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. This announcement is for information only and does not constitute an offer or invitation to acquire or dispose of any securities or investment advice. The distribution of the announcement and/or issue of securities in certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes are required to inform themselves about and to observe such restrictions.
This information is provided by RNS The company news service from the London Stock Exchange
SOURCE: BioProgress PLC