News
Orbus signs letter of intent with Breckenridge Pharmaceutical, Inc.
Orbus Pharma Inc. (ORB - TSX), ("Orbus") today announced the signing of a Letter of Intent (LOI) with Breckenridge Pharmaceutical, Inc. ("Breckenridge"), a United States based distributor of own-label pharmaceutical products. The LOI pertains to an exclusive long term profit-sharing agreement for the United States that covers the development, supply and marketing of the Orbus developed metoprolol succinate extended-release tablets. Jeff Renwick, President and CEO of Orbus Pharma, explained: "This agreement validates a tremendous market opportunity for the Orbus products in the United States and the significant financial benefits of a profit-sharing arrangement with Breckenridge, both of which are first time occurrences for us."
Under terms of the LOI, Orbus will develop and submit an Abbreviated New Drug Application ("ANDA") to the U.S. Food and Drug Administration (FDA) for metoprolol succinate extended-release tablets. Breckenridge will contribute its experience with the FDA regulatory framework, particularly with regard to ANDA procedures. Upon approval by the FDA, Orbus will manufacture and Breckenridge will market and distribute the product on an exclusive basis in the United States. On a long term basis, the two companies will be equal partners. "This profit-sharing arrangement recognizes the significance of the Orbus development efforts. It also gives us the ability to participate more broadly in the strong revenue growth Breckenridge is expecting for the product"; according to Greg Muir, VP Finance and CFO of Orbus Pharma.
The metoprolol succinate extended release tablet is a once a day beta blocker that can be used alone or in combination with other medications to treat high blood pressure. It is also used to prevent angina and, in combination with other medications, to treat heart failure. The product is a generic form of Astra Zeneca's branded product, Toprol XL, which had annual sales in the United States of approximately $1.7 billion in 2006.
Breckenridge was founded in 1983 and is headquartered in Boca Raton Florida. Its website is www.bprix.com. Breckenridge markets a broad range of ValuBrand™ and generic prescription products in many therapeutic categories. Its sophisticated marketing programs and experienced sales team reaches over 100 accounts including wholesalers, distributors, chains and managed care accounts as well as retail pharmacies throughout the United States.
Orbus, headquartered in Markham, Ontario and listed on the Toronto Stock Exchange under the symbol ORB, pursues an integrated global strategy of: (1) generic drug development, using proprietary delivery systems for certain products; (2) product out-licensing; and (3) pharmaceutical supply agreement manufacturing. For more information please visit www.orbus.ca.