Flamel Technologies Announces Multi-Year Supply Agreement with GlaxoSmithKline for Coreg CRTM Microparticles
- Additional payments of €2.6 million
- Increased manufacturing margins
LYON, France--(BUSINESS WIRE)--Flamel Technologies (Nasdaq: FLML) announced today that it has entered into a multi-year supply agreement with GlaxoSmithKline (NYSE: GSK) for the production of Coreg CR microparticles. Flamel Technologies is the sole supplier of Coreg CR microparticles for GSK. Under the agreement, Flamel will receive guaranteed minimum payments to supply Coreg CR microparticles over a period of several years. The agreement defines the manufacturing relationship between the two companies following the expiration of the previous supply agreement on December 31, 2010. Pursuant to the agreement, Flamel received a payment of €1.3 MM during the third quarter and anticipates a further €1.3 MM payment to be paid in the next ten days, as well as the higher margin on all product produced by Flamel since January 1, 2011.
Stephen H. Willard, Flamel's chief executive officer, commented, "We welcome the conclusion of this agreement with GSK. The new supply agreement provides Flamel and its shareholders with higher margins and greater certainty. We believe that this agreement further strengthens our ability to develop both of our best-in-class drug delivery platforms."
About Micropump®. The Micropump® micro-encapsulation drug delivery platform (oral drugs) is designed to increase the absorption time of drugs, particularly for drugs only absorbed in the small intestine. Micropump enables the achievement of precise pharmacokinetics. Micropump can be presented in various dosage forms such as capsules, tablets, sachets or oral suspensions (LiquiTimeTM) without modifying the release rate. Micropump is the intellectual platform licensed by GlaxoSmithKline for the development of Coreg CR. Flamel has also developed another drug delivery technology for oral drugs, i.e. Trigger LockTM for the controlled release of narcotic and opioid analgesics while defeating most commonly employed methods of tampering. Additional information can be found at www.flamel.com/technology-platforms/micropump/.
About Flamel Technologies
Flamel Technologies SA (NASDAQ: FLML) is a leading drug delivery company focused on developing safer, more efficacious formulations of drugs that address unmet medical needs. Its product development pipeline includes biological and chemical drugs formulated with the Medusa® and Micropump® proprietary platforms. Several Medusa-based products are at various clinical stages of development; Medusa's lead internal product candidate IFN-alpha XL (long-acting interferon alpha-2b) is currently the subject of a Phase 2 trial in HCV patients. The Company has developed approved products in the US and in EU and manufactures Micropump-based microparticles. Flamel Technologies has collaborations with a number of leading pharmaceutical and biotechnology companies, including Baxter, GlaxoSmithKline, Merck Serono (long-acting interferon beta) and Pfizer. Further information may be found at www.flamel.com.
This document contains a number of matters, particularly as related to financial projections and the status of various research projects and technology platforms, that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The presentation reflects the current view of management with respect to future events and is subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. These risks include risks that products in the development stage may not achieve scientific objectives or milestones or meet stringent regulatory requirements, uncertainties regarding market acceptance of products in development, the impact of competitive products and pricing, and the risks associated with Flamel's reliance on outside parties and key strategic alliances. These and other risks are described more fully in Flamel's Annual Report on the Securities and Exchange Commission Form 20-F for the year ended December 31, 2010.
Charles Mosseri Marlio
tel: (+) 33 (0)4 7278 3434
fax: (+) 33 (0)4 7278 3435
Director of Strategic Planning and Investor Relations