26 Jan 2009 12:21
FOR IMMEDIATE RELEASE 26 January 2009
ReGen Signs Distribution Agreement for Colostrinin™ in Turkey
ReGen Therapeutics Plc ('ReGen' or the 'Company') is pleased to announce that it has today signed an agreement with Eczacibasi Ilac Pazarlama A.S.*, appointing the Company as the exclusive distributor of its nutritional supplement Colostrinin™ in the Rupublic of Turkey.
This appointment is conditional upon Eczacibasi securing import and regulatory approval for the product. An application to gain approval should be submitted in the first quarter 2009. Should approval be forthcoming Eczacibasi will pay ReGen a $50,000 milestone payment on approval being granted and then a fee per unit for the active ingredient component of the formulated product. Net Revenues to ReGen from Eczacibasi pursuant to the minimum annual purchase commitments in the distribution agreement are estimated to be $52,000 in the first year after regulatory approval is obtained, and $104,000 in the second year. No further details of the agreement will be disclosed.
To date Colostrinin™ is marketed in the US, Canada and Australia under the brand name CogniSure™ ** and in Cyprus under the brand name Cognase™ *** as a nutritional supplement to 'support healthy brain aging and cognition in humans'.
Commenting on this agreement Percy Lomax, Chairman and Chief Executive Officer of ReGen said :
'This agreement marks yet another important step in the accelerated roll out programme for Colostrinin™, and shows the further build up of revenues. We expect to be announcing more deals over the coming months'.
* Eczacibasi www.eczacibasi.com is a leading turkish industrials group with 40 companies, approximately 9,300 employees and revenues of $3.2bn in 2007. Eczacibasi's Ilac Pazarlama A.S. division is based in Levent-Istanbul, Turkey.
**Colostrinin™ for use as a human nutraceutical is licensed in North America and Australasia to Metagenics Inc. of San Clemente, California (www.metagenics.com).
*** Colostrinin™ is distributed in the Republic of Cyprus by Golgi Pharmaceuticals Ltd (www.healthybrainaging.com)For further information:
Percy Lomax ReGen Therapeutics Plc Tel No 020 7153 4920
Roland Cornish/Felicity Geidt Beaumont Cornish Limited Tel No 020 7628 3396
Nick Bealer/David Scott Alexander David Tel No 020 7448 9820
Notes to Editors:
Colostrinin™ is derived from colostrum a mammal's first milk after birth and is produced in a production line in S Dakota, freeze dried in Oregon and tabletted at Metagenics Inc plant in California. Metagenics are the distributors in North America and Australia. If full production and sales were achieved on North American margins revenue to the Company would be $10 million before relatively low head office expenses. It would be possible, by spending around another $550,000 to bring production facilities up to a level to generate revenue of around $50 million.
Colostrinin™ has been available in the professional channel of the healthcare market in North America and Australia for over a year. Although achieving professional awareness and endorsement was a necessary first step, retail distribution, was always and remains our objective. The first retail launch was in Cyprus in October 2008 and there are already encouraging reports from this market. Turkey marks yet another step in the development of Colostrinin™ to make ReGen Therapeutics a self-sustaining business.