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LIDAK PHARMACEUTICALS
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[LIDAK LOGO]
October 1, 1998
To Our Shareholders:
This is an exciting time for the Company as we approach the Food and Drug
Administration's decision regarding marketing approval of our first product,
n-docosanol 10% cream. I would like to take this opportunity to provide an
update for you.
As those following the Company's progress will recall, when we filed the
n-docosanol new drug application with the FDA in late December 1997, the filing
was placed on a "12 month track", implying a decision in the fourth quarter of
this year. During the last several months, we have been preparing our plan for
product launch, which continues to be our "Number One" priority. As part of our
product launch plan for n-docosanol, we are working to complete commercial
agreements with our contract drug and product manufacturers and warehousing and
distribution companies, to prepare as much as practicable in advance of the
FDA's decision. Additionally, we are working on co-promotion opportunities to
supplement our marketing campaign.
Earlier this year, we presented a strategic plan at our annual
shareholders' meeting. We have been aggressively implementing this plan. Let me
now share some of our progress with you.
As with any major undertaking, the most important factor is the people who
do the work. We are fortunate because in addition to our excellent technical
staff, several talented and experienced managers have recently joined our
management team.
In July, Gregory Hanson became the Company's Chief Financial Officer. Greg
brings us a wealth of experience of having served as CFO at several technology
companies. In September, David Hansen became Vice President of Sales and
Marketing. David has considerable experience in successfully launching new
pharmaceutical products and will play an important role in the commercialization
of n-docosanol. We are pleased to have both executives with us during this
important phase of the Company's growth.
Also in September, the Company retained The Dilenschneider Group, an
investor relations agency in New York, to communicate news to Wall Street. BGM
Health Communications, a Los Angeles based, medical/healthcare marketing
communications agency, was retained to help build the commercialization plan for
n-docosanol as we prepare to launch this product to the health care professional
and consumer markets.
As fiscal year 1999 progresses, we intend to investigate in-licensing
opportunities to help fill our product pipeline.
In summary, we believe that the execution of our strategic plan is on track
for the coming new fiscal year.
I would like to thank our shareholders for their loyalty and confidence in
us as the Company achieves transition with its new strategic plan. We fully
intend to build long-term shareholder value as your company moves ahead.
Sincerely,
/s/ Gerald J. Yakatan
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Gerald J. Yakatan, Ph.D.
Chief Executive Officer
