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Executive Summary

LOHMANN THERAPY SYSTEMS ESTABLISHING U.S. HABITROL PLANT to manufacture the nicotine patch for North American markets. The German firm licenses the transdermal smoking cessation product to Ciba-Geigy worldwide. LTS purchased a manufacturing facility in West Caldwell, N.J. this spring; the firm estimates that it will be operational in approximately two years following reconfiguration and regulatory approvals. Ciba-Geigy has reported sales of Habitrol of nearly $350 mil. after about six months on the market in the U.S. The patches are currently produced at LTS' Neuwied, Germany facility. LTS noted that the U.S. expansion will not alleviate current supply shortages for the nicotine patches but is instead part of a longer-term plan for the company to develop a full U.S. operation. LTS' fledgling U.S. business is headed by Rainer Hoffmann, the former president of Boehringer Mannheim Pharmaceuticals. Hoffmann also is a past president of Knoll. He left Boehringer Mannheim in May 1991 and was succeeded by former Beecham President Ted Wood ("The Pink Sheet" Dec. 23, 1991, T&G-6). Reporting to Hoffmann are: VP-Plant Operations Salvatore Fascetta, a former Knoll exec; Engineering and Technical Services Manager Francis DeMarinis, a former Becton Dickinson exec; and Regulatory Affairs Manager Michael Garrett. LTS was formed in 1984 by the German wound care and adhesives company Lohmann GmbH. LTS focuses on the development of human therapeutic systems, mainly transdermals, but also is developing veterinary, agricultural and cosmetic systems. In addition to Habitrol, LTS is the developer and manufacturer of the Deponit transdermal nitroglycerin patch marketed by Schwarz Pharma Kremers-Urban. LTS has approximately 400 employees, including 65 in R&D, and claims almost 100 development projects.

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