Polydex Pharmaceuticals sells Veterinary Pharmaceutical business in US

Toronto, ON – January 14, 2004 – Biotechnology company Polydex Pharmaceuticals says it has sold its Veterinary Laboratories finished product veterinary pharmaceutical business in the United States to its longtime partner Sparhawk Laboratories. The sale includes substantially all assets of the subsidiary, and is in exchange for $5,500,000 in cash and an exclusive ten-year commitment from Sparhawk for the purchase of certain bulk chemicals from Polydex. The deal also includes settlement of all outstanding litigation between the two companies.

“This sale allows us to focus our efforts and resources on human pharmaceutical research,” says George Usher, President, CEO and Chairman of Polydex. “[This] includes further benefits of our leading human pharmaceutical compound, Ushercell, than are currently being explored.”

Ushercell is a gel formulation originally envisioned for topical vaginal use primarily in the prevention of unplanned pregnancies as well as the transmission of AIDS and other sexually transmitted diseases.

As part of the FDA approval process, several comprehensive studies have been completed to date to assess Ushercell’s safety and tolerance in contraception and the prevention of HIV and other STDs with the assistance and financial support of the contraceptive research and development program, Consortium for Industrial Collaboration in Contraceptive Research and Global Microbicide Program (CONRAD).

“We intend to provide additional funding to the research team to embark upon research into Bacterial Vaginosis inhibition immediately, and are committed to increasing the opportunities to commercialize Ushercell,” he adds.

Polydex Pharmaceuticals researches, manufactures and markets biotechnology-based products. It says its business approach is to research and license potential human pharmaceutical products to valued partners for final development, thereby reducing R&D expenditures while retaining a revenue stream from royalties on successful products. It also manufactures bulk pharmaceutical intermediates for the worldwide veterinary pharmaceutical industry.