QUÉBEC CITY - September 27, 2006 – Advitech inc. (TSX-V: AVI) announces today the signing
of a revised agreement with Jouan Biotechnologies covering the royalties to be paid by Advitech
to Jouan Biotechnologies on the international sales of Dermylex™. The initial licensing
agreement, signed in 2003, stipulated minimum royalty fees payable to Jouan Biotechnologies by
Advitech for the first three years of the agreement, including additional royalty fees corresponding
to net sales percentage generated by Advitech when commercializing Dermylex™. In August
2006, Advitech finalized the minimum royalty fees payment and negotiated a new agreement
ending in 2013, reducing the percentage on the minimum royalty fees on Dermylex™ sales to be
paid to Jouan by Advitech. Advitech has also retained the possibility of extending the duration of
the agreement until the expiry date of the last Foreign Patent underlying the licensed technology
by Jouan in favour of Advitech.
DISTRIBUTION IN THE U.S.
Advitech has also announces the end of its discussions with PhotoMedex, the U.S. corporation
with which an agreement of principle was signed in January 2006, for the distribution of
Dermylex™ on the U.S. market. That corporation could not meet the required conditions for
concluding a definitive agreement. Advitech is currently negotiating with new potential partners
(and already has market tests running in the United States). It intends to secure a definitive
agreement for the U.S. market by the first quarter of 2007.
Advitech has, in addition, signed a consultation contract with Joe Contorno, former President and
Chief Executive Officer of Doctor’s Dermatologic Formula, in New York City, to assist Advitech in
its ongoing discussions with U.S. partners, and to follow market developments. “Joe Contorno
has vast and profitable experience in the development of companies similar to Advitech on the
U.S. market and his expertise has already generated certain opportunities for Advitech,” specified
Renaud Beauchesne, Advitech’s President and Chief Executive Officer.
Dermylex™, developed by Advitech, is an oral natural health product relieving mild to moderate
psoriasis symptoms. Its efficacy has been clinically proven by two clinical trials, one of them multicenter,
double-blind and placebo-controlled, for 112 days and on 84 patients, confirming
Dermylex™’s efficacy and safety for mild to moderate psoriasis. Dermylex™ is currently available
in Canada. For more information, please visit the www.dermylex.ca website.
Advitech is a health sciences and technology company with a mission to discover and
commercialize proprietary and evidence-based natural health products. Effective and safe, these
products play a role in the prevention of Immuned Mediated Inflammatory Disorders (IMID), such
as psoriasis and inflammatory bowel diseases. Advitech’s common shares are listed on the TSX
Venture Exchange under symbol AVI. The number of common shares outstanding is 54,799,818.
This press release contains forward-looking statements which reflect the Company's current
expectations regarding future events. The forward-looking statements involve risks and
uncertainties. Actual results could differ significantly from those projected herein.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this