CALGARY, Alberta, Dec. 22, 2011 /PRNewswire/ -- Fero Industries, Inc. (OTCQB: FROI), the exclusive owner, producer and distributor of the Type-II diabetes treatment Sucanon®, is pleased to announce that it has entered into a Distribution Agreement with Premium Pharma Co. for the marketing and distribution of Sucanon® in several countries in the region (Egypt, Saudi Arabia, United Arab Emirates, Bahrain, Kuwait, Qatar, Oman, Jordan, Lebanon, Iraq, Sudan and Libya).
The 5-year Distribution Agreement calls for a minimum purchase of $13 million USD and gives Premium Pharma the exclusive right to market and sell Sucanon® through its established distribution channels and will begin shortly the regulatory process with the Ministries of Health for the sale of Sucanon®. Fero is also taking the necessary steps to comply with the United States government for this Agreement, and the companies expect to complete the licencing process and commence shipping of Sucanon® within a year.
"We are thrilled to be able to expand our presence within the Greater Middle East region to distribute Sucanon® with a well-established and reputable partner," said Mr. Luis Lopez, President and COO of Fero Industries. "Premium Pharma's regional business and consumer knowledge, along with their established pharmaceutical and healthcare products distribution network, makes them an ideal partner to expand this business model across the Middle East. This new agreement represents a major financial milestone for Fero, as it brings the total in minimum product to be purchased to $24 million USD for the region. We are working to expedite the necessary approvals from the various US government agencies and expect notification soon. This agreement validates Sucanon as a major new drug for Type II diabetes."
Iran and other countries in the Middle East have one of the largest and fastest growing diabetic populations in the world. Six countries in the Middle East and North African Region rank among the world's top ten for diabetes prevalence. According to the World Health Organization, current estimates show that 26.6 million people have Type-II diabetes in the region (7.7% of the adult population) with that number expected to nearly double in the next 20 years. Similarly, the number of people with Impaired Glucose Intolerance ("IGT") or "pre-diabetes" is estimated to be an additional 24.4 million cases (7.1% of the adult population). Healthcare costs associated with diabetes in the region were estimated to be $5.6 billion in 2010.
"The rapidly increasing number of people with Type-II diabetes in the Middle East is a direct indicator of the need for Sucanon® in the region. We are proud to have aligned ourselves with a company of Premium Pharma's caliber to mark our entry into this important geographical sector," stated Mr. Lopez.
Sucanon® is one of only three approved drugs in the multi-billion dollar market for a class of diabetic medications called "insulin sensitizers." Pre-clinical and clinical studies show that Sucanon® and other insulin sensitizers lower a patient's blood sugar by increasing the muscle, fat and liver's sensitivity to the body's own naturally produced insulin. Sucanon® has been approved for prescription sale in China, Peru and Mexico. Sucanon® is also approved as an OTC treatment for Type-II diabetes by regulatory authorities in Mexico, and is distributed there under an exclusive agreement with Merck S.A. de C.V.
For further information regarding Sucanon®, please visit the Fero Industries, Inc. website at www.feroindustries.com.
About Fero Industries, Inc.
Fero Industries, Inc. (OTCQB: FROI) is focused on diabetes prevention and treatments. The Company holds the intellectual property and all exclusive world-wide rights related to the production, marketing, and distribution of Sucanon®, an oral treatment for Type-II diabetes. Sucanon® is a member of a class of diabetic medications called insulin sensitizers. Insulin sensitizers lower blood sugar by increasing the muscle, fat and liver's sensitivity to insulin. Insulin sensitizers are blood sugar normalizing or euglycemic drugs that help return the blood sugar to the normal range without the risk of low blood sugars. Fero's strategy is to increase awareness, acceptance, and distribution of Sucanon® globally.
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Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Fero Industries, Inc. (the Company) to be materially different from those expressed or implied by such forward-looking statements.
The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."
SOURCE Fero Industries, Inc.