Dura Acquires Antibiotics From BMS

Dura Pharmaceuticals, Inc. has signed an agreement for exclusive U.S. distribution rights for Bristol-Myers Squibb Co.'s Maxipime IV/IM (cefepime HC1) and Azactam IV/IM (aztreonam) hospital antibiotic products. The agreement requires an initial payment by Dura of $60 million, a further payment of $70 million due in 2003 and additional contingent payment amounts.

The companies have also entered into a transitional co-promotion agreement in which Bristol-Myers Squibb will dedicate a hospital sales force to promote the products in 1999. The transaction will be effective Jan. 1, 1999. Bristol-Myers Squibb will be responsible for the manufacture and supply of the products for Dura.

The market for intravenous (IV) antibiotics in the U.S. totaled approximately $1.4 billion in 1997. "With the potential for peak annual combined revenues to be more than twice our first year expectations, Maxipime and Azactam are strategically and financially significant for Dura," said Cam L. Garner, Dura's chairman and CEO. "They support our respiratory-focused business strategy while funding our expansion into the hospital market, which offers substantial opportunity for additional product acquisitions and represents an important distribution channel for our Spiros products, pending FDA approval."

In addition to the strategic fit of the products, Dura expects Maxipime and Azactam to have positive financial impact. "In 1999, we expect that the products will be mildly accretive to earnings as we will simultaneously co-promote the products with Bristol-Myers Squibb and invest in building our own hospital sales force," Garner explained. "Sales of Maxipime and Azactam in the year 2000 will support our goal to deliver 35% growth in earnings-per-share, even if major pre-launch or launch expenses are incurred for our Spiros products during that time," he added.

For more information: Dura Pharmaceuticals, Inc., 5880 Pacific Center Blvd, San Diego, CA 92121-4204. Telephone: 1-800-859-8585.