QUÉBEC – JANUARY 12, 2006 - Advitech Inc. (TSX-V: AVI) today announced it has reached an agreement in principle (the “Agreement”) with PhotoMedex Inc. (NASDAQ: PHMD), a U.S. company to market and distribute its psoriasis product Dermylex™ in the U.S territory. PhotoMedex sells Excimer lasers and products for skin health through its own sales force directly to dermatologists, plastic and cosmetic surgeons, spas and salons and through licenses with strategic partners.
PhotoMedex intends to pre-launch the product during the first quarter of 2006 in selected locations and based on the results of this pre-launch phase, it expects to roll-out the product in all its sales locations in the United States in the second half of 2006. Before beginning a full roll-out of the product, Advitech and PhotoMedex intend to complete the negotiations for a definitive Contract (the "Contract") before June 30, 2006. The Contract will give PhotoMedex exclusive rights from Advitech to market products using Dermylex™, Advitech’s clinically-tested bioactive ingredient for the treatment of psoriasis in specific U.S market segment. The Contract will extend over several years, and will provide for certain minimum level of purchase of products to be negotiated between PhotoMedex and Advitech. Other terms and conditions of the Agreement were not disclosed.
Renaud Beauchesne, CEO of Advitech added: “We are very pleased with this Agreement because we share with PhotoMedex the importance of providing effective solutions for mild-tomoderate psoriasis patients. Their effective sales organization and access to dermatologists will also allow our product to be positioned very well in the important U.S. market.“ Commenting on the Agreement, Jeff O'Donnell, President and CEO of PhotoMedex, said, "PhotoMedex is pleased with this agreement with Advitech. We see Advitech’s product as a natural complement to our XTRAC(R) laser therapy for mild-to-moderate psoriasis. We believe the dermatology community will welcome Advitech’s oral product for mild-to-moderate psoriasis and patients will benefit too from this oral product".
PhotoMedex recently acquired Procyte Corporation, a company which develops and markets therapeutic and daily use skincare and procedure-based products to dermatologists. PhotoMedex markets its XTRAC(R) laser directly to physicians through its sales organization for the treatment of psoriasis. Physicians also use the skincare products to improve healing following aesthetic procedures such as laser resurfacing, laser hair removal and microdermabrasion, and for daily use to promote healthy skin and reduce hyperpigmentation, fine lines and wrinkles.
PhotoMedex is a leader in the development, manufacturing and marketing of medical laser products and services. In addition as a result of the merger with ProCyte, PhotoMedex now develops and markets products based on its patented, clinically proven Copper Peptide technology for skin health, hair care and wound care. The Company sells directly to dermatologists, plastic and cosmetic surgeons, spas and salons and through licenses with strategic partners into the consumer market, including a long-term worldwide license agreement with Neutrogena(R), a Johnson & Johnson company. ProCyte brands include Neova(R), Ti-Silc(R), VitalCopper(R), Simple Solutions(R) and AquaSante(R).
Dermylex™ is Advitech’s orally administered product for mild to moderate plaque psoriasis. Dermylex™ is based on Advitech’s XP-828L, a bioactive ingredient with proven clinical efficacy. On July 5, 2005, the Company reported positive results from its Phase II clinical trial of XP-828L for treating mild to moderate psoriasis. The 112-day, multi-center, double blind, placebo controlled study, involving 84 patients, confirmed the efficacy and excellent safety profile of XP-828L for treating mild to moderate psoriasis.
Advitech is a biotechnology company specializing in the development of clinically tested bioactive ingredients for chronic immune-mediated inflammatory diseases (I.M.I.D.), such as psoriasis and inflammatory bowel diseases. Advitech’s common shares are listed on the TSX Venture Exchange under the symbol AVI. The number of common shares outstanding is 54,799,818.
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