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EXHIBIT 99.1
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 SIGNED AGREEMENTS WITH EPIX MEDICAL AND
MALLINCKRODT TO DEVELOP AND MARKET MS-325
-- SCHERING AG WILL PAY $30 MILLION IN UP-FRONT FEE AND MILESTONE PAYMENTS --
BERLIN, GERMANY; CAMBRIDGE, MASSACHUSETTS; ST. LOUIS, MISSOURI, JUNE 9, 2000 -
Schering AG, Germany (Dax: SCHG), EPIX Medical, Inc. (Nasdaq: EPIX) and
Mallinckrodt Inc. (NYSE: MKG) today announced that they have signed agreements
to develop, manufacture and market MS-325, EPIX' novel cardiovascular magnetic
resonance imaging (MRI) agent currently in Phase III clinical trials.
Under the terms of a series of agreements signed this week, Schering AG will pay
$10 million in an up-front fee and $20 million in milestone payments for the
exclusive rights to co-develop and sell MS-325* worldwide (excluding Japan).
EPIX will assume responsibility for completing clinical trials and filing for
Food and Drug Administration approval in the United States, and Schering AG will
lead clinical activities for the product outside the United States. EPIX and
Schering AG will split clinical development costs equally. Pursuant to a
long-term supply contract, Mallinckrodt will assume responsibility for the
manufacture of MS-325 for clinical development and commercial use. Under the
agreements, EPIX and Schering AG will generally share equally in operating
profits in the United States, while Schering AG will pay EPIX a royalty on gross
profits in the rest of the world. Mallinckrodt also will receive profit sharing
from EPIX and earn profits on manufacturing.
"As a bloodpool agent, MS-325 opens up new capabilities in MR-Angiography, an
innovative and exciting technique for improved and less invasive detection of
cardiovascular disease. As a result, we are securing our leadership position in
the MRI contrast media market," said Michael Rook, Diagnostics Business Unit
Head of Schering AG. "With the impressive growth rates we have experienced in
the diagnostic marketplace, the addition of MS-325 represents one more strategic
step forward and helps also to strengthen our presence in the critical US
market."
"This collaboration signifies a tremendously important milestone for MS-325 and
adds to our already impressive group of strategic collaborators," said Michael
D. Webb, Chief Executive Officer of EPIX. "As the global MRI market leader for
contrast agents, Schering AG is an ideal partner to maximize the sales potential
of MS-325, and we welcome its expertise as we strengthen and broaden our
clinical development plan. Similarly, Mallinckrodt's commitment to
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* MS-325 was formerly known by the Mallinckrodt product name, AngioMARK.
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MS-325, and its world-class expertise in the manufacture of contrast agents,
will be vital to our overall commercialization plans."
Bradley J. Fercho, President of Mallinckrodt's Imaging Group, said,
"Mallinckrodt is pleased to realign its partnership for MS-325 to leverage the
R&D expertise of EPIX, Schering AG's worldwide presence in MRI, and
Mallinckrodt's proven manufacturing capabilities to collectively pursue the
magnetic resonance angiography market. The trend in the industry today is toward
collaboration. Successful companies will continue to combine resources to more
effectively leverage their asset base, improve efficiencies and reduce costs.
This new collaboration by EPIX, Mallinckrodt and Schering AG is a good
illustration of that principle at work."
MS-325 is designed to enable a non-invasive, safe and cost-effective way to
detect blockages in the cardiovascular system. EPIX' Phase III multi-center
clinical trial program is designed to compare the diagnostic accuracy of
MS-325-enhanced MRI with that of X-ray angiography in patients with aortoiliac
occlusive disease. X-ray angiography, which is an invasive procedure, is the
current standard for diagnosing vascular disease. Evaluation for aortoiliac
occlusive disease is a critical component of two common procedures performed on
the peripheral vascular system: abdominal aortography, particularly for the
identification of abdominal aortic aneurysm, and leg arteriography, also known
as peripheral run-off, for the detection of atherosclerosis. There are
approximately one million X-ray angiographic procedures performed in the United
States each year to diagnose aortoiliac occlusive disease. A 600-patient Phase
III program is being conducted at over 50 sites.
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.
EPIX is a specialty pharmaceutical company based in Cambridge, MA, engaged in
developing targeted contrast agents to transform the diagnosis and clinical
management of 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, please
visit the EPIX Medical website at www.epixmed.com.
Mallinckrodt Inc. is a global manufacturer and marketer of specialty healthcare
products for respiratory care, diagnostic imaging and pain management. The
company's imaging group provides contrast agents for magnetic resonance imaging,
x-ray and ultrasound for imaging a wide variety of diseases. Mallinckrodt
operates in more than 100 countries globally and had fiscal 1999 net sales of
$2.6 billion.
THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS BASED ON CURRENT
EXPECTATIONS OF THE COMPANY'S MANAGEMENT. SUCH STATEMENTS ARE SUBJECT TO RISKS
AND UNCERTAINTIES WHICH COULD
-more-
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CAUSE ACTUAL RESULTS TO DIFFER FROM THOSE PROJECTED, INCLUDING RISKS AND
UNCERTAINTIES RELATED TO THE CONDUCT OF, AND RESULTS OBTAINED FROM, OUR CLINICAL
TRIALS, OUR DEPENDENCE ON CORPORATE COLLABORATIONS, OUR ABILITY TO DEVELOP
MULTIPLE APPLICATIONS FOR OUR PRODUCTS AND TECHNOLOGIES, MARKET ACCEPTANCE OF
OUR PRODUCTS, REIMBURSEMENT POLICIES OF THIRD-PARTY PAYORS WITH RESPECT TO OUR
OWN PRODUCTS, COMPETITION AND TECHNOLOGICAL CHANGE.
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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]
AT MALLINCKRODT INC.
BARBARA ABBETT -- MEDIA BOB MARTSCHING - INVESTOR
Phone: (314) 654-5230 Phone: (314) 654-3190
[email protected] [email protected]
