The Quigley Corporation and Phosphagenics Limited Form JV to Develop and Market OTC Products
March 23 2010 - 8:30AM
Marketwired
The Quigley Corporation (NASDAQ: QGLY) and
Phosphagenics Limited (ASX: POH) (OTCQX:
PPGNY)
today announced the formation of a
joint venture to develop a wide range of non-prescription remedies
for worldwide distribution and sale.
The joint venture entity is the newly formed Phusion Laboratories LLC. Phusion combines
Phosphagenics' state-of-the-art science and research team with
Quigley's robust distribution network and OTC market expertise to
develop and market powerful OTC products.
The new products will be powered by Phosphagenics' proprietary,
patented TPM™ technology. TPM™ is a patient-friendly and cost
effective system used to deliver proven pharmaceutical and
nutraceutical products. The ability of TPM™ delivery technology to
increase the amount and depth of penetration of active molecules
into the skin has been compellingly demonstrated in human clinical
trials. It is effective in delivering OTC molecules orally,
topically and via inhalation.
"Phosphagenics' extraordinary technology lends itself perfectly
to delivery of OTC drugs as the inclusion of TPM™ will increase the
absorption and efficacy of many OTC active ingredients," said
Quigley CEO Ted Karkus. "Our signature product Cold-EEZE® has built
its reputation and robust distribution network on its uniquely
effective delivery system. We see the world-class scientific
research team at Phosphagenics as the perfect partner to help us
leverage our existing network and consumer product expertise."
Harry Rosen, CEO of Phosphagenics, said, "Phosphagenics has
invested more than nine years in developing its proprietary TPM™
technology. Quigley has a proven track record of distributing its
OTC lines throughout the US. We see extraordinary OTC products
coming out of this joint venture for large markets such as acne
treatment and smoking cessation where irritation is a major issue.
Our technology has demonstrated that it can deliver products more
effectively than other commercial products, while significantly
reducing irritation. We believe our partner has an exceptional
ability to effectively market and distribute these potential future
products."
"Because we are focusing on OTC drugs, for which no prescription
is required, we will avoid the tens of millions of dollars of costs
and years of development associated with launching a new
prescription drug," added Mr. Karkus.
Under the terms of the agreement, Quigley and Phosphagenics will
each own 50% of Phusion Laboratories, LLC. Phusion has been granted
a worldwide, exclusive, royalty-free license to the TPM™ technology
for use in a wide range of non-prescription products, applications
and active ingredients. Quigley will make a one time payment to
Phosphagenics of $1 million and the issuance to Phosphagenics of
1.44 million shares of Quigley common stock.
Additionally, Quigley has contributed $500,000 of initial
capital and committed up to $2 million toward the initial
development and marketing costs of new products for Phusion
Laboratories to commercialize. Phosphagenics will conduct and
oversee much of the product development, formulation, testing and
other R&D needed by the company. Quigley will oversee much of
the distribution, sales and marketing.
Ted Karkus will discuss and answer questions about Phusion
Laboratories during Quigley's earnings conference call later this
week on Thursday, March 25th at 11:00am EDT.
About The Quigley Corporation
The Quigley Corporation is a diversified natural health medical
science company. It is a leading marketer and manufacturer of the
Cold-EEZE® family of lozenges and sugar free tablets clinically
proven to significantly reduce the severity and duration of the
common cold. Cold-EEZE customers include leading national
wholesalers and distributors, as well as independent and chain
food, drug and mass merchandise stores and pharmacies. The Quigley
Corporation has several wholly owned subsidiaries including Quigley
Manufacturing Inc., which consists of an FDA approved facility to
manufacture Cold-EEZE lozenges and fulfil other contract
manufacturing opportunities, and Quigley Pharma, Inc., which
conducts research in order to develop and commercialise a pipeline
of patented botanical and naturally derived potential prescription
drugs. For more information visit us at www.Quigleyco.com
About Phosphagenics Limited
Phosphagenics is a Melbourne-based, globally driven
biotechnology company focused on the discovery of new and cost
effective ways to enhance the bioavailability, activity, safety and
delivery of proven pharmaceutical and nutraceutical products. The
company is commercializing drug delivery applications based on its
novel transdermal (drugs administered via skin) TPM - Targeted
Penetration Matrix technology. TPM™ is a patient friendly and cost
effective system used to deliver proven pharmaceutical and
nutraceutical products.
Two product targets are advancing through clinical trials,
including an insulin patch for diabetics and an oxycodone patch for
the relief of chronic pain.
Phosphagenics' shares are listed on the Australian Securities
Exchange (POH) and its ADR - Level 1 program in the US is with The
Bank of New York Mellon (PPGNY).
For more information, visit us at www.phosphagenics.com
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and involve known and unknown risk,
uncertainties and other factors that may cause the Company's actual
performance or achievements to be materially different from the
results, performance or achievements expressed or implied by the
forward-looking statement. Factors that impact such forward-looking
statements include, among others, changes in worldwide general
economic conditions, changes in interest rates, government
regulations, and worldwide competition.
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For Quigley: Media Relations The Lexicomm Group Wendi Tush Email
Contact (212) 794-4531 Lindsey Gardner Email Contact (570) 479-4895
www.lexicommgroup.com Investor Contact Ted Karkus Chairman and CEO
The Quigley Corporation (215) 345-0919 x 0 For Phosphagenics
Limited: Fred Banti, President, Phosphagenics (US) Phone:
646-706-2155 Investor and Media Contact: Michael D. Becker,
President & CEO MD Becker Partners LLC Phone: 267-756-7094
Email: Email Contact Web: www.mdbpartners.com
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