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EXHIBIT 99.1
[NOVAVAX LETTERHEAD]
COMPANY CONTACTS: John A. Spears
President & CEO
Jim Mirto
Chief Operating Officer
NOVAVAX, INC.
301-854-3900
INVESTORS/MEDIA: Olga Fleming/Lisa Bradlow
WEBER SHANDWICK WORLDWIDE
646-658-8000
NOVAVAX AND KING PHARMACEUTICALS SIGN U .S. CO-PROMOTION AGREEMENT FOR
ESTRASORB(TM)
- NOVAVAX TO CO-PROMOTE AN ADDITIONAL WOMEN'S HEALTH PRODUCT CURRENTLY
MARKETED BY KING IN THE U.S. -
- NOVAVAX TO ACQUIRE AVC PRODUCT FROM KING -
COLUMBIA, MD, JANUARY 8, 2001 - NOVAVAX, INC. (AMEX: NOX) today announced the
signing of a 50/50 co-promotion agreement with King Pharmaceuticals, Inc. (NYSE:
KG) for ESTRASORB(TM), Novavax's topical, transdermal estrogen replacement
therapy, in the United States. All patients enrolled in the Phase III pivotal
trial of ESTRASORB have recently completed dosing, and Novavax expects to file a
New Drug Application (NDA) for ESTRASORB in the first half of 2001. In addition,
Novavax and King will combine U.S. sales efforts to immediately begin
co-promoting one of King's products already on the market, Nordette(R), a birth
control pill. Novavax also announced that it will acquire AVC(TM) Cream and
Suppositories from King for $3.3 million, which is currently being marketed by
King for the treatment of vaginal bacterial infections. As previously announced,
in December 2000, King completed a $25 million convertible debenture investment
in Novavax.
Under the terms of the agreement, both Novavax and King will be involved in the
marketing and promotion of ESTRASORB in the United States and will share in the
revenues and expenses equally. Novavax will be responsible for manufacturing and
distributing the product. In addition, Novavax will receive a milestone payment
from King of $5 million upon filing the ESTRASORB NDA prior to June 30, 2001.
The co-promotion agreement relating to Nordette provides for Novavax and King to
share equally in all revenues and expenses above an established baseline.
Nordette generated sales in the U.S of approximately $34 million during 1999;
AVC sales during 2000 were $1.3 million.
"We are excited to be extending our relationship with King to co-promote
ESTRASORB, which has the potential to be the first-to-market topical estrogen
replacement therapy that addresses the uncomfortable symptoms associated with
post-menopause," stated John A. Spears, President and CEO of Novavax. "Our
agreement with King marks a significant event in the company's history, and the
combined force will create a formidable presence in the women's healthcare
market place. The advantages of this agreement are clear. Novavax, which
recently acquired Fielding Pharmaceuticals' proven sales force with an
established reputation with obstetricians and gynecologists, will gain support
from King's women's health sales staff. The combination will enable Novavax and
King to expand the reach of the promotional programs at an accelerated pace and
offer greater opportunity to achieve strong market penetration for ESTRASORB and
Nordette. This co-promotion agreement will also allow us to expand the products'
sales potential without losing the financial benefits of marketing the product
on our own."
John M. Gregory, Chairman and Chief Executive Officer of King, stated, "We are
very pleased to collaborate with Novavax in the development and potential
commercialization of ESTRASORB. This exciting new women's health product, if
approved, will compete in the $1.2 billion estrogen replacement therapy market
and potentially provide an excellent addition to our expanding women's health
product line."
-more-
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NOVAVAX AND KING PHARMACEUTICALS SIGN U.S. CO-PROMOTION AGREEMENT FOR
ESTRASORB(TM)
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Mr. Spears also stated, "We are also very pleased to add two women's health
products to our portfolio, which build upon our existing product line.
Nordette(R) and AVC(TM) Cream and Suppositories are products with established
sales that we believe have the potential to grow through our Fielding sales
force effort. With these products, Novavax now has a broad portfolio of women's
health products available for sale, allowing us to broaden the spectrum of
treatment we can provide to female patients.
"Overall, our corporate accomplishments over the last 60 days allow us to begin
the New Year as a more focused company, providing us with a strong product,
marketing, sales and financial foundation. We certainly look forward to the
opportunities that lie ahead as we work with King to strengthen our position as
a specialty pharmaceutical company focused on women's health," concluded Mr.
Spears.
ABOUT KING PHARMACEUTICALS
King, headquartered in Bristol, Tennessee, is a vertically integrated
pharmaceutical company that manufactures, markets, and sells primarily branded
prescription pharmaceutical products. King seeks to capitalize on niche
opportunities in the pharmaceutical industry created by cost containment
initiatives and consolidation among large global pharmaceutical companies.
King's strategy is to acquire branded pharmaceutical products and to increase
their sales by focused promotion and marketing and through product life cycle
management.
ABOUT NOVAVAX
Novavax, Inc. is a biopharmaceutical drug delivery company engaged in the
research and development of differentiated drug products primarily in the fields
of women's health and infectious diseases. The Company is applying its
proprietary lipid vesicle encapsulation technologies, including Novasome(R)
lipid vesicles and micellar nanoparticles, to develop product candidates for the
topical and oral delivery of generic and non-generic drugs, peptides, proteins
and oligonucleotides. The Company's Novasome technology is also being developed
as an adjuvant delivery system for enhanced vaccine efficacy. Novavax has
several product candidates in pre-clinical and human clinical trials, including
ESTRASORB(TM), a topical cream for estrogen replacement therapy, which has
completed the Phase III clinical trial. Novavax's Biomedical Services Division
is engaged in contract research and development and Phase I/II vaccine
manufacturing of human vaccines for government laboratories and other vaccine
companies.
The senior management of Novavax will be conducting a conference call on
TUESDAY, JANUARY 9, 2001 AT 4:30 P.M. EASTERN TIME to discuss today's
announcement.
In order to participate in the conference call:
- Please call (719) 457-2653 five minutes prior to the 4:30 P.M. start time.
OR
- Log on to www.vcall.com and click on the company's name to access the call
(NOVAVAX). Internet participants are encouraged to log on to the site 15
minutes prior to the call to register and download any necessary software.
There will also be a replay available until January 12, 2001 by calling (719)
457-0820 and referencing pass code number 699319.
Statements made in this press release that state the company's or management's
intentions, hopes, beliefs, expectations or predictions of the future are
forward-looking statements. The company's actual results could differ materially
from those projected in such forward-looking statements. Additional information
concerning factors that could cause actual results to differ materially from
those in the forward-looking statements is contained in the company's SEC report
on Form 10K for the year ended December 31, 1999 incorporated herein by
reference. Statements made herein should be read in conjunction with the
company's Form 10K. Copies of these filings may be obtained by contacting the
company at 8320 Guilford Road, Columbia, MD 21046 Tel 301-854-3900 or the SEC.
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