RESEARCH TRIANGLE PARK, N.C. – June 9, 2004 – Quintiles Transnational Corp. today announced that it has signed an agreement to sell assets relating to its specialty dermatology products company, Bioglan Pharmaceuticals, to New Jersey-based Bradley Pharmaceuticals, Inc., (NYSE: BDY) in a transaction valued at approximately $183 million in cash, plus direct costs for transferred inventory.
Quintiles Transnational acquired certain assets relating to Bioglan in March 2002 as part of its strategy to invest in pharmaceutical products or companies that need additional resources to achieve their full market potential.
"Since Quintiles originally acquired these assets and formed Bioglan more than two years ago, the company and its products have performed very well − meeting or exceeding our expectations," said Quintiles Transnational Chairman and CEO Dennis Gillings, Ph.D.
"We believe the success of this investment is further evidence of Quintiles' deep understanding of both the science and commercialization aspects of the pharmaceutical market. Quintiles will continue to use its PharmaBio Development group to look for opportunistic investments in companies and products that need additional resources to succeed."
Quintiles intends to use proceeds from the transaction to pay down debt and fund business growth initiatives.
Bradley Pharmaceuticals is a specialty pharmaceutical company marketing prescription niche therapies to highly targeted physician audiences in the United States and in 38 international markets. Dermatology brands are delivered by Bradley Pharmaceuticals' Doak Dermatologics subsidiary.
Under the agreement signed yesterday, Bradley will acquire Bioglan's interests in the dermatology products on the market in the United States, including Solaraze® (diclofenac sodium) Gel, a fast-growing new class of topical treatment for the pre-cancerous skin condition actinic keratosis; the prescription product ADOXA® (doxycycline) for the oral treatment of severe acne; Zonalon™ (doxepin hydrochloride), a topical treatment indicated for pruritus; and Tx Systems®, a line of advanced topical treatments used during in-office procedures.
Of Bioglan Pharmaceuticals' 91 employees in the United States, 61 are in the sales force, with management located at the company's headquarters in Malvern, Pa. Bioglan has been part of PharmaBio Development, Quintiles' strategic investment group.
This agreement is subject to satisfaction of customary contractual conditions and regulatory requirements. Closing is anticipated to occur during the third quarter.
Quintiles helps improve healthcare worldwide by providing a broad range of professional services, information and partnering solutions to the pharmaceutical, biotechnology and healthcare industries. Headquartered near Research Triangle Park, North Carolina, Quintiles has offices in 50 countries and is the world's leading pharmaceutical services organization. For more information visit the company's Web site at www.quintiles.com.
Information in this press release contains "forward-looking statements." These statements involve risks and uncertainties that could cause actual results to differ materially, including, without limitation, the inability of the parties to satisfy all of the conditions to closing, the possibility of delays in obtaining or the failure to receive required regulatory approvals or consents, the possibility that the transaction might otherwise be delayed or fail to close, and the future availability of appropriate investment opportunities. Additional factors that could cause actual results to differ materially are discussed in Quintiles' recent filings with the Securities and Exchange Commission, including but not limited to its annual report on Form 10-K, its quarterly report on Form 10-Q and its current reports on Form 8-K.