WILSON, NC--(Marketwire - October 20, 2011) -
PharmStar Pharmaceuticals, Inc. (PINKSHEETS: PHAR
) (the "Company") today announced that it has signed a commitment letter for a 3-year wholesale distribution agreement for its signature product line, Aquaprin.
Alert Medical Supply ("AMS"), a worldwide wholesale distributor located in Brooklyn, NY, has committed to order a total of $5 million of Aquaprin over a three-year period, beginning upon PharmStar's initial operations for the production of Aquaprin, which Pharmstar's management is planning for the third quarter of 2012. The agreement will require the Company to meet a minimum order requirement over the period of the contract before additional product can be made available to other distribution channels. AMS will look to expand its distribution agreement to include extension products that have been developed by the Company as they become available in the product supply channel.
AMS is also making a direct investment in PharmStar through its Preferred D offering to further the Company's goals of meeting its production deadlines.
PharmStar CEO Howard Phykitt stated, "Distribution is a key function in getting Aquaprin to retail shelves in a timely manner, as we all know. We continue to develop distribution agreements with companies that have experience in getting products to market and on time. Alert Medical meets that goal for us, and we expect this partnership to grow as our ability to produce more Aquaprin grows. Additionally, AMS is now a minority equity partner, and as such is incentivized to help streamline the distribution process."
AMS President Babatunde Kupoluyi stated, "It is exciting to be the first distributor of Aquaprin. I had the opportunity to test Aquaprin, and it is a great product. I made the commitment to the Company with my first order, and show my belief in the product by putting together an equity position as well. I look forward to assisting in getting this aspirin product to market."
About PharmStar Pharmaceuticals, Inc.
PharmStar Pharmaceuticals, Inc. ("PharmStar") is a U.S.-based drug development, manufacturing and marketing company and the innovator of the FDA-approved liquid pain reliever, Aquaprin™. In development since 1993 with over $3 million invested to-date, Aquaprin™ is a liquid derivative of aspirin, and is now ready for commercialization. Aquaprin™'s unique, multiple patent-pending formulas are designed to dissolve nearly instantly in just 1.5 ounces or more of water. This enables the product to be absorbed into the bloodstream up to 10 times faster than traditional OTC pain relievers, and with little to no stomach upset.
PharmStar initially plans to sell Aquaprin™ directly to nursing homes, outpatient and health care clinics, emergency units of hospitals nationwide, as well as retail distribution in selected local markets and third-party websites to be announced. All package engineering, product stability, shelf life testing and quality control research has been completed. PharmStar's headquarters are located in Wilson, NC.
Forward-Looking Statements Disclosure
This press release includes "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as "believes," "will," "looking ahead," "anticipates," "estimates" and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company's projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.