Lake Success , NY
Aceto Corporation Executes Its First Generic Biopharmaceutical Agreement; Joins Forces with Three Rivers Pharmaceuticals® to Produce and Market Three Generic Biopharmaceuticals
(BUSINESS WIRE) – Aceto Corporation (NASDAQ:ACET), a global distributor of chemically-derived pharmaceuticals, biopharmaceuticals, specialty chemicals and agrochemicals, today announced that it signed an agreement with Three Rivers Pharmaceuticals, LLC to bring three generic biopharmaceutical products to market.
Under the agreement, Aceto will source the active pharmaceutical ingredients, manage the regulatory and quality control functions of production, and supply the final dosage form of the products to Three Rivers. Three Rivers will file applications with the appropriate regulatory agencies and market the products in the U.S., Europe and Japan. Aceto anticipates Three Rivers will submit regulatory applications within the next year, with commercialization of the products expected in 2007.
The agreement provides for revenue sharing between the two companies based on Three Rivers’ final selling prices, and will continue for a minimum term of ten years from the date of initial commercial sales.
Leonard S. Schwartz, Chairman, CEO and President of Aceto, stated, “This agreement represents a number of milestones for Aceto:
— Our entree into the generic biopharmaceuticals business.
— The Company’s first significant supply of finished dosage forms.
— The first time Aceto’s revenues will be based on a percentage of the selling price of finished pharmaceuticals to wholesalers, medical facilities, doctors and patients.
“We are extremely pleased to be partnering with Three Rivers, which already has had success in the generic pharmaceutical market. We are also enthusiastic about the products that underlie this agreement, one of which will compete with a brand-name market that approximates $500 million (wholesale) in the U.S.”
Mr. Schwartz continued, “Our work under this contract will complement our strong position in chemically-derived active pharmaceutical ingredients, and establish Aceto as an early participant in the generic biopharmaceutical business. Our expanded Chinese headquarters, which will be completed in March of this year, along with our increasing staffing levels in China, are part of our plan to facilitate the development of this business and our growing position in the evolving biopharmaceuticals market in general. We remain confident about our prospects in the emergent generic biopharmaceuticals segment as well as other biopharmaceuticals markets, and look forward to reporting on future developments.”
Three Rivers Pharmaceuticals, LLC is a privately owned generic drug manufacturing company located in Cranberry Township, PA. For more information, visit http://3riverspharma.com.
Aceto Corporation, which was incorporated in 1947, is a global leader in the distribution and marketing of chemically-derived pharmaceuticals, biopharmaceuticals, specialty chemicals and agrochemicals used principally as raw materials in the agricultural, color, pharmaceutical, surface coating/ink and general chemical consuming industries. With offices in ten countries, Aceto Corporation distributes over 1,000 chemicals in these and other fields.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include, but are not limited to the filing of regulatory applications within the next year, commercialization in 2007, and completion of the Chinese headquarters. All forward-looking statements in this press release are made as of the date hereof, and the Company assumes no obligation to update these forward-looking statements whether as a result of new information, future events or otherwise, other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. These uncertainties include, but are not limited to, the mix of products sold and the profit margins thereon, order cancellation or a reduction in orders from customers, competitive product offerings and pricing actions, the availability and pricing of key raw materials, dependence on key members of management, risk of entering into new European markets, continued successful integration of acquisitions, economic and political conditions in the United States and abroad, as well as other risks detailed in the Company’s SEC reports, including the Company’s Form 10-K and other filings. Copies of these filings are available at www.sec.gov.
Contact Aceto Corporation Leonard S. Schwartz or Douglas Roth, 516-627-6000 www.aceto.com or Investor Relations Counsel: The Equity Group Inc. Loren G. Mortman, 212-836-9604 LMortman@equityny.com or Lauren Barbera, 212-836-9610 LBarbera@equityny.com | www.theequitygroup.com.