Medicis and aaiPharma Announce Strategic Alliance
SCOTTSDALE, Ariz. and WILMINGTON, N.C.--June 26, 2002--Medicis (NYSE:MRX) and aaiPharma Inc. (Nasdaq:AAII), through AAI International, its contract research services business, today announced the signing of an exclusive strategic alliance for the development, commercialization and license of a key dermatologic product. Specific details regarding the nature of the development product were not disclosed.
Terms of the agreement include an initial payment of $7.7 million payable to aaiPharma within three business days of the signing of the agreement and potential additional payments of undisclosed amounts due upon the successful completion of various development milestones. Medicis expects to record a special charge for the initial payment and fees associated with the transaction in research and development expenditures in the fourth quarter of fiscal 2002. This strategic alliance for this important dermatologic product was not included in Medicis' previously provided fourth quarter fiscal 2002 guidance.
"We are pleased to be working with aaiPharma on this important research and development project," said Jonah Shacknai, chairman and chief executive officer of Medicis. "We expect aaiPharma to bring significant expertise to this important development program, which, we believe, will make a meaningful contribution to Medicis' pipeline of new products."
"We are very pleased to be collaborating with Medicis, a leader in dermatology. It is gratifying that they have recognized our significant experience in drug development and analytical expertise by choosing to enter into this collaboration with us," commented Dr. Philip S. Tabbiner, President and Chief Operating Officer of aaiPharma.
About Medicis
Medicis is a specialty pharmaceutical company and a leading independent pharmaceutical company in the United States focusing primarily on the treatment of dermatological, pediatric and podiatric conditions. Medicis develops and markets leading products for major segments within dermatology, including acne, fungal infections, rosacea, hyperpigmentation, photoaging, psoriasis, eczema, skin and skin-structure infections, seborrheic dermatitis, head lice and cosmesis (improvement in the texture and appearance of skin). Ascent Pediatrics, Inc., Medicis' wholly owned subsidiary, markets leading pediatric products for the treatment of asthma and other respiratory inflammatory conditions; acute otitis media, or middle ear infections; and an over-the-counter saline nasal mist.
Medicis' brands include the prescription brands DYNACIN(R) (minocycline HCl), LOPROX(R) (ciclopirox), LUSTRA(R) (hydroquinone), LUSTRA-AF(R) (hydroquinone) with sunscreen, ALUSTRA(TM) (hydroquinone) with retinol, PLEXION(R) Cleanser (sodium sulfacetamide/sulfur), PLEXION TS(TM) (sodium sulfacetamide/sulfur), PLEXION SCT(TM) (sodium sulfacetamide/sulfur), TRIAZ(R) (benzoyl peroxide), OMNICEF(R) (cefdinir), ORAPRED(R) (prednisolone sodium phosphate), OVIDE(R) (malathion), LIDEX(R) (fluocinonide), SYNALAR(R) (fluocinolone acetonide) and TOPICORT(R) (desoximetasone); the over-the-counter brand ESOTERICA(R); and BUPHENYL(R) (sodium phenylbutyrate), a prescription product indicated in the treatment of Urea Cycle Disorder.
About aaiPharma
aaiPharma Inc. is a science-based specialty pharmaceutical company with more than 22-years of drug development experience. Focusing on targeted therapeutic areas, aaiPharma markets a growing portfolio of established branded products and applies innovative technologies to increase the commercial potential of these products. At the same time, aaiPharma's research and development organization is developing an impressive pipeline of products to position it for near-term and long-term growth in its targeted therapeutic areas. In addition to developing and marketing its own line of proprietary pharmaceutical products, aaiPharma continues to be a world leader in providing contract pharmaceutical development services through its AAI International division.
Forward-Looking Statements -- Medicis
Except for historical information, this press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act. All statements included in this press release that address activities, events or developments that Medicis expects, believes or anticipates will or may occur in the future are forward-looking statements. This includes earnings estimates, future financial performance and other matters. These statements are based on certain assumptions made by Medicis based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Medicis cannot validate its assumptions of the full impact on its business of the approval of competitive generic versions of Medicis' core brands, or any future competitive product approvals that may affect Medicis' brands. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Medicis. Any such projections or statements include the current views of Medicis with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such results will be achieved and there are a number of important factors that could cause actual results to differ materially from those projected, including the ability of Medicis to successfully integrate Ascent's operations, the ability to realize anticipated synergies and benefits of the transaction, the risks and uncertainties normally incident to the pharmaceutical industry, dependence on sales of key products, the uncertainty of future financial results and fluctuations in operating results, dependence on Medicis' strategy including the uncertainty of license payments and/or other payments due from third parties, the timing and success of new product introductions and other risks described from time to time in Medicis' SEC filings including its Annual Report on Form 10-K for the year ended June 30, 2001. In addition, Medicis recently sold $400 million of 2.5% Contingent Convertible Notes Due 2032. There can be no assurance as to when or if any of the Notes will be converted, and what impact the increase in the number of shares outstanding will have on our results of operations. Forward-looking statements represent the judgment of Medicis' management as of the date of this release, and Medicis disclaims any intent or obligation to update any forward-looking statements.
NOTE: Full prescribing information for any Medicis prescription product is available by contacting Medicis. OMNICEF(R)is a registered trademark of Abbott Laboratories, Inc. under a license from Fujisawa Pharmaceutical Co., Ltd. All other marks (or brands) and names (other than aaiPharma which is the property of aaiPharma Inc.) are the property of Medicis or its affiliates.
Forward-Looking Statements -- aaiPharma
Information in this press release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934, including the statements by Dr. Tabbiner and in the "About aaiPharma" paragraph and the statements pertaining to the future development, commercialization, license and commercial importance of the dermatological product covered by the agreement; potential development milestones and related payments; aaiPharma's ability to effectively apply its product research and development expertise to Medicis' and other companies' development projects; aaiPharma's growing product portfolio; future product improvements and line extensions; and aaiPharma's growth. These statements involve risks and uncertainties that could cause actual results to differ materially, including, without limitation, risks and uncertainties pertaining to aaiPharma's or its individual business units' ability to successfully develop Medicis' product and third parties' products, achieve the contract milestones on an effective and timely basis, and successfully find, acquire, develop, improve, enhance the safety or efficacy of, obtain regulatory approval to sell, and sell, on a commercially profitable basis, pharmaceutical products without adversely affecting its fee-for-service client relationships or business opportunities. Additional factors that may cause the actual results to differ materially are discussed in aaiPharma's recent filings with the Securities and Exchange Commission, including, but not limited to, its registration statement, as amended, its Annual Report on Form 10-K filed with the SEC on March 11, 2002, including the exhibits thereof, its 10-Q filed with the SEC on May 15, 2002, including the exhibits thereof, its Form 8-Ks and its other filings with the Securities and Exchange Commission. Forward-looking statements represent the judgment of aaiPharma's management as of the date of this release, and aaiPharma disclaims any intent or obligation to update any forward-looking statements.
Contacts: Medicis, Scottsdale Libby Ivy, 602/808-3854 www.medicis.com or aaiPharma Inc. Andrea Johnston, 910/254-7340