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EXHIBIT 99.1
N E W S R E L E A S E
[KING PHARMACEUTICALS LOGO]
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FOR IMMEDIATE RELEASE
KING PHARMACEUTICALS ANNOUNCES EXCLUSIVE LICENSE
FOR ESTRASORB(TM) WITH NOVAVAX
BRISTOL, TN, January 8, 2001 - King Pharmaceuticals, Inc. (NYSE:KG) announced
today that it has obtained an exclusive license from Novavax, Inc. (AMEX:NOX) to
promote, market, distribute and sell Estrasorb(TM), Novavax's topical,
transdermal estrogen replacement therapy, worldwide except in the United States,
Canada, Italy, Netherlands, Greece, Switzerland and Spain. King will pay Novavax
during the term of the license a royalty based on 7.5% of net sales of
Estrasorb(TM) in any exclusive territory. King and Novavax will co-market
Estrasorb(TM) in the United States and Puerto Rico. Under the co-promotion
agreement, Novavax will pay King an amount equal to 50% of net sales, less cost
of goods, of Estrasorb(TM). Marketing expenses for Estrasorb(TM) approved
pursuant to the co-promotion agreement shall be shared equally by the parties.
All patients enrolled in the Phase III pivotal trial of Estrasorb(TM) have
recently completed dosing, and Novavax expects to file a New Drug Application
("NDA") for Estrasorb(TM) in the first half of 2001. King shall pay $5 million
to Novavax if the NDA for Estrasorb(TM) is accepted for filing by the U.S. Food
and Drug Administration ("FDA") on or before June 30, 2001, and if Novavax
provides King with certain opinion letters of an independent drug development
firm. However, King shall pay $2.5 million to Novavax if the NDA for
Estrasorb(TM) is accepted for filing by the FDA after June 30, 2001, but on or
before September 30, 2001, and if Novavax provides King with the required
opinion letters of an independent drug development firm. Novavax shall be
responsible for manufacturing Estrasorb(TM) under the agreements.
Additionally, King and Novavax have agreed to co-market King's product,
Nordette(R) (an oral contraceptive) in the U.S. and Puerto Rico. The
co-promotion agreement relating to Nordette(R) provides for King and Novavax to
equally share all quarterly net sales that exceed established baselines that in
the aggregate total $30 million per year. The parties shall share equally all
expenses associated with net sales of Nordette(R) that exceed such established
baselines. King acquired Nordette(R) in July 2000 from American Home Products
Corporation. Nordette(R) generated net sales in the U.S. and Puerto Rico of
approximately $34 million during 1999.
King announced also that it will divest it rights to AVC(TM) (sulfanilamide),
vaginal anti-infective cream and suppositories, in the U.S. and Puerto Rico to
Novavax for $3.3 million. Net sales of AVC(TM) totaled $1.3 million during 2000.
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(TM). This exciting new women's health product,
if approved, will compete in the $1.2 billion estrogen
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replacement therapy market and potentially provide an excellent addition to our
expanding women's health product line."
"We are excited to be extending our relationship with King to co-promote
Estrasorb(TM), 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 Chief
Executive Officer 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 marketplace. The advantages of this agreement
are clear. Novavax, which recently acquired Fielding Pharmaceutical's 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(TM) and Nordette(R)."
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.
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.
This release contains forward-looking statements which reflect management's
current views of future events and operations, including, but not limited to,
statements pertaining to the development and potential commercialization of
Estrasorb(TM) by Novavax and King. These forward-looking statements involve
certain significant risks and uncertainties, and actual results may differ
materially from the forward-looking statements. Some important factors which may
cause results to differ include: dependence on Novavax's ability to successfully
develop Estrasorb(TM), including the FDA's approval of a related NDA, King's and
Novavax's ability to successfully launch and market Estrasorb(TM), dependence on
sales of King's products, including, in particular, but not limited to,
Altace(R), Lorabid(R), Levoxyl(R), Thrombin(R), and Cytomel(R)/Triostat(R),
management of King's growth and integration of its acquisitions, including but
not limited to, King's merger with Jones Pharma Incorporated and King's merger
with Medco Research, Inc., dependence on King's ability to continue to acquire
branded products, and the high cost and uncertainty of research, clinical
trials, and other development activities involving pharmaceutical products,
including, but not limited to,
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Estrasorb(TM). Other important factors that may cause actual results to differ
materially from the forward-looking statements are discussed in various sections
of King's Form 10-K for the year ended December 31, 1999, and King's Form 10-Q
for the quarterly period ended September 30, 2000, which are on file with the
Securities and Exchange Commission, King's Form S-3 as filed with the Securities
and Exchange Commission on January 21, 2000, and related prospectus supplements
dated April 19, 2000, and October 17, 2000, and King's Form S-4 as filed with
the Securities and Exchange Commission on July 28, 2000. King does not undertake
to publicly update or revise any of its forward-looking statements even if
experience or future changes show that the indicated results or events will not
be realized.
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CONTACTS:
KING -
Kyle P. Macione, Executive Vice President, Corporate Affairs - 423-989-8077
James E. Green, Senior Director, Corporate Affairs - 423-989-8125
NOVAVAX -
Company: John A. Spears, President and CEO - 301-854-3900
Jim Mirto, Chief Operating Officer - 301-854-3900
Investors/Media: Olga Fleming/Lisa Bradlow,
Weber Shandwick Worldwide - 646-658-8000
EXECUTIVE OFFICES
KING PHARMACEUTICALS - 501 FIFTH STREET, BRISTOL, TENNESSEE 37620
