BRISTOL, Tenn., Dec. 27 /PRNewswire/ -- SJ Strategic Investments LLC, the largest shareholder of Stellar Pharmaceuticals Inc. ("Stellar" or "the Company") (BULLETIN BOARD: SLXCF) (TSXV: SLX) , today commented on the recent announcement by Stellar Pharmaceuticals Inc. that Watson Pharmaceuticals, Inc. ("Watson") has acquired the exclusive development and commercialization rights in the United States for Uracyst(R) (the "Product"), Stellar's novel agent for the treatment of interstitial cystitis.
Under the terms of the License Agreement entered into between Stellar and Watson, a copy of which has been filed with the U.S. Securities and Exchange Commission (available at http://www.sec.gov/) and the Canadian securities regulatory authorities (available at http://www.sedar.com/), Watson will be responsible for the expenses related to conducting clinical studies and obtaining approval from the U.S. Food and Drug Administration ("FDA") and will have exclusive rights to commercialize Uracyst(R) in the United States. Among other things, the License Agreement sets out that Stellar will receive a payment of U.S. $2,200,000.00 within two (2) business days of the signing of the License Agreement, U.S. $1,300,000.00 within thirty (30) days of issuance of a second patent in the United States containing at least one valid claim protecting the Product and which claims are based on PCT publication W02004073584, and U.S. $4,500,000.00 within thirty (30) days of receipt of FDA approval to market, sell and distribute the Product in the United States.
In addition to the above-referenced milestone payments and during the term of the License Agreement, Stellar will receive the following royalty payments on Net Sales (as defined in the License Agreement) of the Product as long as the Product is protected by at least one valid patent claim:
Annual Net Sales (USD) Royalty $0 - $50 MM 10% $50 - 100 MM 12% $100 - $200 MM 16% > $200 MM 18%
Mr. John M. Gregory, founder and former Chairman and CEO of King Pharmaceuticals and current Managing Partner of SJ Strategic Investments, stated, "I am extremely excited that a large pharmaceutical company such as Watson Pharmaceuticals believes in the potential of Uracyst(R). If Uracyst(R) is approved in the United States, the double-digit royalties on what could possibly be nine figure annual net sales would add greatly to Stellar's bottom line in the future. As Stellar's largest shareholder, SJ Strategic Investments would like to congratulate Peter Riehl and his staff at Stellar Pharmaceuticals for closing, in my opinion, a very positive transaction for the Company."
About SJ Strategic Investments
SJ Strategic Investments LLC is a private, family-owned investment vehicle with a diverse portfolio of public and private investments.
About Stellar Pharmaceuticals Inc.
Stellar develops high quality, cost effective proprietary products based on its core polysaccharide technology for niche, under-served markets. Stellar has developed and is marketing direct in Canada and in countries around the world through out-license agreements three products based on its core polysaccharide technology; NeoVisc(R), for the treatment of osteoarthritis; and Uracyst(R) and the Uraycyst(R) Test Kit, its patented technology for the diagnosis and treatment of interstitial cystitis (IC), an inflammatory disease of the urinary bladder wall. Stellar also has an in- licensing agreement for NMP22(R) BladderChek(R), a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer.
To the extent any statements made in this release are not historical, these statements are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, and under provisions of applicable Canadian provincial securities legislation. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations, to attract and retain qualified professionals, technological obsolescence; general economic conditions; and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission and the applicable Canadian securities regulatory authorities.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
© 2006 PR Newswire
