Sinclair Pharma plc
Sinclair Pharma and Orapharma mutually agree to terminate US distribution
agreement for Decapinol® mouth rinse
12 November 2009, Godalming, UK: Sinclair Pharma plc (the "Company" or
"Sinclair": SPH:L), the international specialty pharma company, today announces
that it has mutually agreed with Orapharma Inc to terminate with immediate
effect their distribution agreement for Decapinol mouth rinse, known as Impede,
in the US. Decapinol is an innovative product for treating gingivitis and
plaque and preventing periodontitis. Orapharma, a Johnson & Johnson subsidiary,
held US rights to the niche market of sale and promotion to dental
professionals.
The effect of this termination is that Sinclair is immediately free to license
and reposition the product for a much larger target market, including the
over-the-counter (OTC) market in the US. The agreement with Orapharma
effectively meant the product would not reach the OTC market for some years.
Sinclair is in discussions about the opportunities and is confident that the
long term benefit to shareholders can outweigh any short-term loss of potential
milestone income from Orapharma.
Incoming CEO of Sinclair Pharma, Chris Spooner, commented:
"The refinancing of our business allows Sinclair to take a strategic view of
its operations with less reliance on one-off licensing income and greater focus
on ongoing revenues and profitability. There is considerable interest in
Sinclair's Decapinol rinse and related dental products in the US and we will
now be able to negotiate an agreement that will help maximise its potential
more broadly by allowing us to quickly penetrate the US market via both the OTC
as well as the specialist dental prescriptions."
Sinclair recently announced that it entered into new debt facilities of £9
million and as planned, the proposed equity fundraising will be scaled back to
£18 million. The funds will be used to pay for the acquisition, if approved by
shareholders, for the products from Solvay Pharmaceuticals as announced on 12
October 2009, as well as for working capital purposes for the Company.
Ends -
For further information please contact:
Sinclair Pharma plc Tel: +44 (0) 1483 410 600
Chris Spooner
Dr Michael Flynn
Jerry Randall
Singer Capital Markets Ltd Tel: +44 (0)20 3205 7500
Shaun Dobson
Claes Spång
Capital MS&L Tel +44 (0)20 7307 5340
Mary Clark
Anna Mitchell
About Sinclair Pharma Plc www.sinclairpharma.com
Sinclair Pharma plc is an international specialty pharmaceutical company
providing solutions to treat dermatological, oral care and gynaecological
diseases through advanced surface technology and innovative delivery systems.
It has a growing sales and marketing operation that is already present in
France, Italy, Spain and Portugal, and a complementary marketing partner
network that spans more than 90 countries.
Decapinol
Decapinol® is an innovative range of treatments that helps treat gingivitis and
prevent periodontitis. Delmopinol, a surface-active agent is the key ingredient
in Decapinol. It is able to form a cationic barrier that reduces surface
tension on the teeth and gums, preventing microbial adhesion and colonisation
on their surface, thus hampering the adherence of bacteria and significantly
slowing the formation of new plaque without adversely altering the oral
bacterial flora. Decapinol is proven to reduce gingivitis and bleeding gums by
36% more than placebo and oral hygiene and in clinical trials had fewer side
effects and was better tolerated than the gold standard - chlorhexidine.
Decapinol gel can reduce gingivitis and mild to moderate periodontitis acting
on plaque adhesion and consequently on gingival inflammation and it is safe and
well-tolerated.
Decapinol is available in seven countries: Greece, Italy, Slovakia, Finland,
Cyprus, Israel and Norway.
"Safe Harbor" Statement under the US Private Securities Litigation Reform Act
of 1995: Some or all of the statements in this document that relate to future
plans, expectations, events, performances and the like are forward-looking
statements, as defined in the US Private Securities Litigation Reform Act of
1995. Actual results of events could differ materially from those described in
the forward-looking statements due to a variety of factors.
END
