Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

NEWPORT's NAME CHANGE TO "SYSTEMED" REFLECTS NEW MAIL-ORDER FOCUS

Executive Summary

NEWPORT's NAME CHANGE TO "SYSTEMED" REFLECTS NEW MAIL-ORDER FOCUS for the former Newport Pharmaceuticals, which has discontinued development of its only pharmaceutical product in the U.S. to focus instead on mail-order pharmacy. Newport became SysteMed as of Oct. 1, the company announced in an Oct. 25 preliminary prospectus for an offering of 2.5 mil. shares of common stock. SysteMed's wholly-owned subsidiary, America's Pharmacy, accounted for 90% of the firm's consolidated revenues in the first nine months of 1991 with sales of $ 57 mil. The decision to discontinue drug development has resulted in net income of $ 948,000 for the first three quarters, compared to losses in the five preceding years. SysteMed abandoned efforts to obtain U.S. approval for its sole pharmaceutical product, the immunomodulating agent Isoprinosine (inosine dimepranol acedoben), in 1990 after FDA decided that additional clinical trials were necessary prior to consideration of approval, the prospectus says. Newport had been studying the drug for treatment of pre-AIDS conditions and had compassionate use approval for treating the orphan indication subacute sclerosing panencephalitis. FDA rejected SysteMed's NDA for Isoprinosine as a treatment for AIDS in 1985, but the company said it subsequently "expended significant funds" to determine efficacy in the treatment of "asymptomatic HIV infection, herpes and other viral infections." Foreign sales of Isoprinosine have been less than $ 8 mil. over the past five years, and patent rights have expired in all the principal markets, the company reported. America's Pharmacy filled 802,000 prescriptions through nine months of 1991, a 32.3% increase over the year-earlier period. The average price per script was $ 70.65, compared to $ 61.03 in 1990, an increase of 15.8%. America's Pharmacy services 650 clients (primarily small to mid-size companies) from a single facility in Des Moines, Iowa. SysteMed's strategy for building its mail-service pharmacy business includes adding non-maintenance prescriptions to the maintenance drug services it now offers. Nonmaintenance drug scripts represent around 30% of medications prescribed, the firm estimates. The company noted that approximately $ 2 mil. of the estimated gross proceeds of $ 12.2 mil. from the 2.5 mil. share offering will go toward completion of the development of a new management information and database management software for America's Pharmacy. Another $ 750,000 would be utilized if the company either expands its Des Moines facility or moves to another location; another portion of the proceeds will be used to pay down America's Pharmacy's current $ 8 mil. revolving line of credit, the prospectus states. Sutro & Co. is underwriting the offering.

You may also be interested in...



Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth

UsernamePublicRestriction

Register

LL1126093

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel