WILMINGTON, Del. & WOODLAND HILLS, Calif.--(BUSINESS WIRE)--June 19, 2001
Current Distribution Agreement in Effect Through 2003; Companies Agree
to Forego Automatic Renewal in 2004; National Consulting Firm
Jointly Retained to Explore Areas of Potential Collaboration
DuPont Pharmaceuticals Company, a wholly owned subsidiary of DuPont (NYSE: DD), and Syncor International Corporation (Nasdaq: SCOR) today announced they have agreed to forego the automatic renewal provision in their current distribution agreement, which remains in effect through 2003.
The companies also announced that they are working together to explore the development of an extended distribution agreement. Additionally, the companies have engaged the services of a national consulting firm to assist in that process and to explore other areas of potential collaboration.
The DuPont Pharmaceuticals-Syncor agreement, which provides Syncor with preferred U.S. distribution rights for DuPont Pharmaceuticals' Cardiolite(R) (Kit for the Preparation of Technetium Tc99m Sestamibi for Injection), the leading cardiac imaging agent in the U.S., would renew automatically in 2004 unless either company elected to cancel the renewal option. Today's announcement confirms the companies' mutual recognition of the need to modify the current distribution agreement in the context of an extension or successor agreement.
Richard U. De Schutter, chairman and CEO of DuPont Pharmaceuticals, said, "Syncor's service network, with its extensive nationwide reach, has played an important role in the phenomenal success of Cardiolite. We expect Cardiolite will continue to grow and to provide additional contributions to our overall financial performance in the years to come. Together, DuPont Pharmaceuticals and Syncor are exploring ways to extend, renew and improve our successful collaboration going forward. It is important for both Syncor and DuPont Pharmaceuticals to develop and refine our distribution and service strategies for our radiopharmaceutical customers."
Robert G. Funari, Syncor's president and CEO, said, "Since our current distribution agreement with DuPont Pharmaceuticals was developed eight years ago, the radiopharmaceutical industry has changed considerably. When we established our partnership with DuPont Pharmaceuticals, it was important that the relationship be flexible enough to respond to changing business conditions, and it has been our expectation that a new contract would be created for 2004 to reflect the changes that have occurred. I remain committed to improving and broadening our relationship with DuPont Pharmaceuticals."
Cardiolite(R) (Kit for the Preparation of Technetium Tc99m Sestamibi for Injection) has been rarely associated with acute severe allergic events of angioedema and urticaria. The most frequently reported adverse events include headache, chest pain/angina, ST segment changes on ECG, nausea and abnormal taste and smell. Exercise and pharmacologic stress testing should be performed only under the supervision of a qualified physician.
Syncor International Corporation is a leading provider of high technology health-care services concentrating on nuclear pharmacy services, medical imaging, niche manufacturing and radiotherapy.
In the nuclear pharmacy services business, Syncor compounds and dispenses radiopharmaceuticals for diagnostic and therapeutic use by nuclear medicine departments in hospitals and outpatient clinics. Syncor distributes these time-critical pharmaceuticals through an integrated network of 130 domestic and 19 international nuclear pharmacies.
Syncor also offers information management services; the company currently provides these services to more than 7,000 U.S.-based customers. Medical imaging services are provided through an integrated network of 62 domestic and 13 international owned or operated facilities (including two catheterization laboratories overseas). Domestic medical imaging operations are conducted by Syncor's wholly owned subsidiary Comprehensive Medical Imaging Inc., and international operations are conducted by Syncor Overseas Ltd.
Syncor also owns or operates three domestic and two international production facilities for positron emission tomography (PET) radiopharmaceuticals and is a party to a series of agreements to make PET technology more accessible to health-care providers and patients nationwide. Syncor also produces and markets Iodine-125 brachytherapy seeds used to treat prostate cancer and operates a gamma knife facility in South America.
This news release contains forward-looking statements, including, but not limited to, those regarding an expected impact on Syncor's financial results. While these statements reflect Syncor's best current judgement, they are subject to risks and uncertainties that could cause actual results to vary. In addition to factors noted, other risk factors are listed from time to time in the company's reports filed with the SEC, including, but not limited to, Management's Discussion and Analysis in Syncor's 2000 Annual Report incorporated by reference in Syncor's Form 10-K for the year ended Dec. 31, 2000, as updated in Syncor's Quarterly Reports on Form 10-Q.
Based in Wilmington, Del., DuPont Pharmaceuticals is a worldwide business that focuses on research, development and delivery of pharmaceuticals and imaging products to treat unmet medical needs in the fights against HIV, cardiovascular disease, central nervous system disorders, cancer and inflammatory diseases.
DuPont is a science company, delivering science-based solutions that make a difference in people's lives in food and nutrition; health care; apparel; home and construction; electronics; and transportation. Founded in 1802, the company operates in 70 countries and has 93,000 employees.
Note: Cardiolite(R) is a registered trademark of the DuPont Pharmaceuticals Company.
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