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Exhibit 99.1
NEWS RELEASE
SONUS PHARMACEUTICALS REFOCUSES ON DRUG DELIVERY
AND BLOOD SUBSTITUTES
Company Concurrently Announces Withdrawal of EchoGen NDA
BOTHELL, WASHINGTON, OCTOBER 12, 2000--SONUS Pharmaceuticals, Inc. (Nasdaq:SNUS)
announced today a strategic decision to refocus the Company on the development
of its drug delivery and blood substitute products. At the same time, SONUS has
withdrawn the NDA (New Drug Application) and discontinued clinical activity for
its ultrasound contrast product, EchoGen(R). These decisions are based on
several factors, including recent discussions with the U.S. Food and Drug
Administration (FDA) that revealed that a significant amount of additional work
would need to be done to get EchoGen approved in the U.S.
"We are disappointed that we were unable to get EchoGen approved in the U.S.,
but we believe that the decision to refocus is a sound one based on an
assessment of the potential returns of our drug delivery and blood substitute
opportunities versus the cost and limited opportunity of an echocardiography
ultrasound contrast product," said Michael A. Martino, SONUS President and CEO.
"We believe that this refocus strategy is a better investment of our resources
and is the right decision in our efforts to enhance the value of the Company for
our shareholders."
In drug delivery, SONUS is using its TOCOSOL(TM) emulsion technology to
formulate therapeutic drugs that are highly insoluble in water to deliver them
with less toxicity and in a more convenient method of administration to the
patient. The Company's first drug delivery product under development, S-8184, is
an injectable paclitaxel emulsion formulation for the treatment of breast,
ovarian and lung cancer. SONUS recently filed an IND (Investigational New Drug
Application) in the United States for S-8184 and plans to begin Phase 1 human
clinical trials early in 2001.
The Company's blood substitute product, S-9156, is being developed as an oxygen
carrier for use in a variety of situations, including emergency trauma settings,
where blood typing and cross-matching are now very time-consuming, and in
surgeries where there is high blood loss, for which patients now have to bank
their own blood in advance of surgeries. In March 2000, SONUS signed a research
agreement with The State University of New York at Buffalo (SUNY/UB) for
development of an oxygen delivery product using SONUS' proprietary
perfluorocarbon-based emulsion technology. Early non-clinical studies from
SUNY/UB indicate that SONUS' blood substitute product can deliver oxygen more
efficiently than alternative products under development. The Company plans to
complete pre-clinical studies with its blood substitute product in early 2001
and then file an IND.
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"We are encouraged and excited by the progress that we have made in our drug
delivery and blood substitute programs, and we believe that these areas hold
great promise for SONUS," said Mr. Martino. "We ended the quarter with $15
million in cash, and we believe that this, coupled with a restructuring plan
that will be implemented in the fourth quarter, will ensure that we have the
financial resources for the next 18 to 24 months to meet our objectives under
this refocus strategy."
The Company will hold a conference call today, Thursday, October 12, 2000, at
1:30 P.M. PDT, 4:30 P.M. EDT, to discuss its strategic refocus. The call will be
broadcast live on the SONUS web site at www.sonuspharma.com. The conference call
will also be archived on the Company's web site for approximately 30 days after
the live call. News releases and other corporate information are available on
SONUS' web site, and the Company's news releases may be obtained via fax by
calling 800-758-5804, Ext. 108377.
Contact: Pamela Dull, SONUS Pharmaceuticals, Inc., (425) 487-9500.
Certain of the statements made in this news release are forward-looking such as
those, among others, relating to the development of drug delivery and blood
substitute products, the strength of the Company's technology, and the Company's
future success. As discussed in the Company's annual report on Form 10-K filed
February 29, 2000, actual results could differ materially from those projected
in the forward-looking statements as a result of the following factors, among
others: future SONUS products will require extensive clinical testing and
approval by regulatory authorities, which approvals may never occur or may be
subject to certain regulatory requirements; there can be no assurance that the
Company will be able to successfully develop drug delivery and blood substitute
products; further, there can be no assurance that SONUS will initiate Phase 1
clinical trials for S-8184 or complete pre-clinical trials and initiate human
clinical trials with its blood substitute product; the Company's results from
operations have varied and will continue to vary from quarter to quarter and
will depend upon, among other factors, timing and cost of clinical trials
planned by SONUS and receipt of collaborative partner payments if any; there can
be no assurance that the company will receive any future collaborative partner
payments or that its cash requirements will be met by any such payments; and the
Company may seek external financing through available means, which may include
debt and/or equity financing or the licensing or sale of proprietary or
marketing rights, and there can be no assurance that financing will be available
on acceptable terms, if at all.
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