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SMITHKLINE BEECHAM/APPLIED MICROBIOLOGY DEAL COVERS AMBICIN-N ANTIMICROBIAL

This article was originally published in The Tan Sheet

Executive Summary

SMITHKLINE BEECHAM/APPLIED MICROBIOLOGY DEAL COVERS AMBICIN-N ANTIMICROBIAL for use in OTC oral health care products under an agreement announced by the two companies on July 1. The agreement provides SmithKline with exclusive worldwide rights to New York City-based Applied Microbiology's patented antimicrobial agent Ambicin-N for use in oral health care products. The agreement initially covers toothpastes and mouth rinses but may "eventually" be extended to "oral sprays, dental flosses and denture products," Applied Microbiology Chairman David Guttmann said. The agreement requires SmithKline "to achieve certain development milestones to an agreed timetable and will provide SB with a worldwide exclusive license to use the resulting products for several years following introduction," a press release announcing the agreement states. Applied Microbiology expects products generated by the agreement to enter the marketplace sometime in 1995 or 1996, after development and clinical trials. A spokesperson at SmithKline said it was premature to say whether products stemming from the agreement would be introduced as new brands or incorporated into existing SmithKline Beecham brands as line extensions. SmithKline Beecham's existing roster of oral health care products includes Aquafresh toothpaste and Cepacol mouthwash/gargle. Applied Microbiology received patent protection in October 1992 for the bacteriocin Ambicin-N, covering the treatment of conditions caused by bacteria in the oral cavity such as gingivitis. In 1989, Pfizer acquired an option to license ambicin plaque- reducing mouthwash from Applied Microbiology. The option for an exclusive license to market the product in North America was extended for five months. Pfizer, according to Applied Microbiology, eventually opted out of the agreement following a corporate restructuring that led to a reduced interest in developing the company's oral care business.
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