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EXHIBIT 99.2
EPIX Medical, Inc.
71 Rogers Street
Cambridge, MA 02142-1118
Tel: 617.250.6000
Fax: 617.250-6032
Web: www.epixmed.com
FOR IMMEDIATE RELEASE
SCHERING AG AND EPIX MEDICAL ESTABLISH PARTNERSHIP
FOR MRI CARDIOVASCULAR CONTRAST AGENTS
--Schering AG will make $20 million equity investment in EPIX--
BERLIN, GERMANY, CAMBRIDGE, MASSACHUSETTS; JUNE 9, 2000 - Schering AG Germany
(Dax: SCHG) and EPIX Medical, Inc. (Nasdaq: EPIX) today announced the formation
of a strategic partnership to develop and commercialize magnetic resonance
imaging (MRI) cardiovascular contrast agents. As previously announced, Schering
AG gains worldwide rights (excluding Japan) to market MS-325, which is in Phase
III trials. In addition, Schering AG will have an option to develop and market
an unspecified cardiovascular product from EPIX's product pipeline. Also under
the terms of the agreement, EPIX will have an option to participate in the
development and marketing of two Schering AG products currently in clinical
trials, SHU555C and Gadomer-17. Schering AG will make a $20 million equity
investment in EPIX at $17.98 per share, equal to the 20-day average closing
price of EPIX stock as of May 5, 2000. Schering AG will purchase unregistered,
restricted common shares.
"Based on Schering AG's commitment to MRI technology, our leading position in
the market and the potential of MS-325, we expect to strengthen our presence in
the critical US market. As MS-325 opens up new capabilities in cardiovascular
MR, we are securing our leadership position in the MRI contrast media market,"
said Michael Rook, Diagnostics Business Unit Head, of Schering AG.
The four products-in-development covered by this agreement are intended to
enhance MRI in detecting blockages in the cardiovascular system. The agents are
designed to provide a safe,
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EPIX Medical and Schering AG Establish Partnership
June 9, 2000/Page 2
minimally-invasive alternative to X-ray angiography, the current gold standard
in detecting cardiovascular disease. Over 10 million invasive X-ray angiograms
are performed worldwide each year.
TERMS OF THE AGREEMENT
As announced earlier today, Schering AG has acquired exclusive rights to
co-develop and sell MS-325 worldwide (excluding Japan). Generally, EPIX and
Schering AG will share equally in MS-325 clinical development costs and profits.
Schering AG has also acquired the right to exclusive worldwide co-development
and sales of a cardiovascular MRI agent from EPIX's product pipeline. After
completion of EPIX-funded preclinical activities for this product, Schering AG
may exercise its right through payment of an up-front fee and milestone
payments, sharing equally in development costs and profits.
Schering AG will fund the development costs of SHU555C. EPIX has the right to
obtain a royalty from the worldwide sales of Schering AG's SHU555C and may
exercise this right through payment of an up-front fee upon the marketing
approval of SHU555C and MS-325. EPIX has also acquired the exclusive rights to
worldwide co-development and profit sharing for Schering AG's Gadomer-17. After
completion of Schering AG-funded Phase II studies, EPIX may exercise this right
through payment of an up-front fee and milestones. EPIX and Schering AG will
share equally in development costs and profits for Gadomer-17.
Michael D. Webb, Chief Executive Officer of EPIX, said, "We are extremely
pleased to be partnering with Schering AG in this field. Schering AG is the most
powerful worldwide sales and marketing company of MRI contrast agents, with over
60% market share worldwide. We believe that this agreement covers the four
leading products in this field, and that together, EPIX and Schering AG will be
able to build a large and mutually profitable business in magnetic resonance
angiography."
EPIX Medical is a specialty pharmaceutical company based in Cambridge, MA,
engaged in developing targeted contrast agents to transform the diagnosis and
clinical management of
-more-
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EPIX Medical and Schering AG Establish Partnership
June 9, 2000/Page 3
disease using MRI. The Company's principal product under development, MS-325, is
an investigational new drug designed to enhance MRI. To receive EPIX Medical's
latest news and other corporate developments, visit the EPIX Medical website at
www.epixmed.com.
Schering AG is a research-based pharmaceutical company. Its activities are
focused on four business areas: gynecology, diagnostics, dermatology and
therapeutics for disabling diseases, e.g. multiple sclerosis, leukemia and solid
tumors. As a global player with innovative products Schering AG aims for leading
positions in specialized markets world-wide. With in-house R&D and supported by
an excellent global network with external partners, Schering AG is securing a
promising product pipeline. Using new ideas, Schering AG aims to make a
recognized contribution to medical progress and strives to improve the quality
of life.
THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES. THESE STATEMENTS ARE BASED ON CURRENT EXPECTATIONS; ACTUAL
RESULTS MAY DIFFER MATERIALLY. AMONG THE FACTORS THAT COULD CAUSE ACTUAL RESULTS
TO DIFFER MATERIALLY FROM THOSE PROJECTED ARE THE FOLLOWING: THE EFFECT OF
BUSINESS AND ECONOMIC CONDITIONS; THE IMPACT OF COMPETITIVE PRODUCTS AND
CONTINUED PRESSURE ON PRICES REALIZED BY THE COMPANY FOR ITS PRODUCTS;
CONSTRAINTS ON SUPPLIES OF RAW MATERIALS USED IN MANUFACTURING CERTAIN OF THE
COMPANY'S PRODUCTS; CAPACITY CONSTRAINTS LIMITING THE PRODUCTION OF CERTAIN
PRODUCTS; DIFFICULTIES OR DELAYS IN THE DEVELOPMENT, PRODUCTION, TESTING, AND
MARKETING OF PRODUCTS; DIFFICULTIES OR DELAYS IN RECEIVING REQUIRED GOVERNMENTAL
OR REGULATORY APPROVALS; MARKET ACCEPTANCE ISSUES, INCLUDING THE FAILURE OF
PRODUCTS TO GENERATE ANTICIPATED SALES LEVELS; DIFFICULTIES IN RATIONALIZING
ACQUIRED BUSINESSES AND IN REALIZING RELATED COST SAVINGS AND OTHER BENEFITS;
THE EFFECTS OF AND CHANGES IN TRADE, MONETARY AND FISCAL POLICIES, LAWS AND
REGULATIONS; FOREIGN EXCHANGE RATES AND FLUCTUATIONS IN THOSE RATES; THE COSTS
AND EFFECTS OF LEGAL AND ADMINISTRATIVE PROCEEDINGS, INCLUDING ENVIRONMENTAL
PROCEEDINGS AND PATENT DISPUTES INVOLVING THE COMPANY; AND THE RISK FACTORS
REPORTED FROM TIME TO TIME IN THE COMPANY'S SEC REPORTS. THE COMPANY UNDERTAKES
NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENTS AS A RESULT OF FUTURE
EVENTS OR DEVELOPMENTS.
# # #
FOR FURTHER INFORMATION, PLEASE CONTACT:
AT SCHERING
OLIVER RENNER HONG CHOW
BUSINESS AND FINANCIAL COMMUNICATION INVESTOR RELATIONS
Phone: +49-30 - 468 124 31 Phone: +49-30 - 468 128 38
Fax: +49-30 - 468 166 46 Fax: +49-30 - 468 166 46
[email protected] [email protected]
AT EPIX MEDICAL AT FEINSTEIN KEAN HEALTHCARE
MICHAEL WEBB -- CHIEF EXECUTIVE OFFICER FRANCESCA T. DEVELLIS OR JULIE MOSOW
SYDNEY BARRETT -- INVESTOR RELATIONS Phone: (617) 577-8110
Phone: (617) 250-6012 [email protected]
