SAN DIEGO, July 2, 2001 (PRIMEZONE) -- Women First HealthCare, Inc. (Nasdaq:WFHC) has acquired exclusive U.S. rights and title to Midrin(r), a prescription headache management product, from Elan Corporation, plc, effective June 29, 2001. Women First expects the acquisition and an equity investment by Elan to strengthen the Company's financial structure and profit potential. Midrin(r) is the second acquisition for Women First in six months.
Women First paid $15 million for product rights and inventory, and will pay Elan a residual royalty on future product sales. Elan financed a portion of the transaction in the form of secured debt, and made an equity investment in Women First at a premium to market. Elan's calendar year 2001 sales of Midrin(r) through May 2001 were approximately $5 million. Women First will assume manufacturing responsibility for the product.
Commenting on the agreement, Women First chairman, president and CEO, Edward F. Calesa, stated, "The acquisition of Midrin(r) supports our business strategy as a specialty pharmaceutical company for baby boomer women and moves us closer to our goal of profitability. We will simultaneously add a highly respected partner to our Company and a revenue-generating, well-known pharmaceutical to our product mix. This transaction is an important step in implementing our strategy and our commitment to build shareholder value."
According to the National Headache Foundation, more than 45 million Americans suffer from chronic, recurring headaches. Midrin(r) (isometheptene mucate, USP, dichloralphenazone, USP and acetaminophen, USP) is indicated for relief of tension and vascular headaches. Both tension and vascular (which include migraine) headaches are more common in women. Of the 28 million Americans suffering from migraine annually, 70% are women (1), whose hormonal milestones -- including menopause -- are often associated with changes in headache frequency and severity (2). Midrin(r) has been used for over thirty years as a well-tolerated, commonly prescribed, cost efficient headache management product.
Michael Sember, Elan's executive vice president of business development, stated, "We value the opportunity to invest in Women First HealthCare and are excited to be teaming up with them. They have great depth of management expertise in women's health. We will seek ways to assist Women First in its growth and development."
About Midrin(r)
Midrin(r) is indicated for relief of tension and vascular headaches. Midrin(r) is contraindicated in glaucoma and/or severe cases of renal disease, hypertension, organic heart disease, hepatic disease, and in those patients who are on monoamine-oxidase (MAO) inhibitor therapy. Caution should be observed in hypertension, peripheral vascular disease and after recent cardiovascular attacks. Adverse reactions can include transient dizziness and skin rash in hypersensitive patients, which can usually be eliminated by reducing dosage.
(1) National Headache Foundation. NHF Headache Facts. Information accessed from NHF Website at http://www.headaches.org/factsheet.html. Accessed June 7, 2001.
(2) American Council For Headache Education. Headache Across Women's Life Cycle. Information accessed from ACHE Website at http://www.achenet.org/women/life. Accessed June 7, 2001.
About Women First HealthCare, Inc.
Founded in 1996, Women First HealthCare, Inc. is a San Diego-based specialty pharmaceutical company. Its mission is to help midlife women make informed choices regarding their health care needs and to provide pharmaceutical and lifestyle products to meet those needs. Women First is specifically targeted to women age 40+ and their clinicians. The Company's Pharmaceutical Division, which includes a nationwide team of experienced sales specialists, contacts primarily OB/GYNs and Nurse Practitioners with estrogen replenishment options-ORTHO-EST(r) Tablets (estropipate) and Esclim(tm) (estradiol transdermal system). The Consumer Business is responsible for Daily Difference(tm) dietary supplements, developed in consultation with Tufts University School of Nutrition Science and Policy, and the Company's line of self-care products available through its As We Change(r) national mail order catalog and Internet retailer, www.aswechange.com. Trialogue(tm), the Corporate Marketing Division, is responsible for providing access to Women First's network of opinion leaders and clinicians through strategic marketing programs for sale to major pharmaceutical companies. The Company's business strategy includes the acquisition and licensing of additional prescription products that support its mission. Further information about Women First can be found online at www.womenfirst.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to various risks, and Women First HealthCare, Inc. cautions you that any forward-looking information is not a guarantee of future performance. Women First HealthCare, Inc. disclaims any intent or obligation to update these forward-looking statements. Actual results could differ materially due to a number of factors, including (i) we have incurred significant losses since we were founded in November 1996, and if midlife women do not use, and their clinicians do not recommend, the products we offer, we will continue to experience significant losses; (ii) there is a limited market awareness of our Company and the products and services we offer; (iii) we may need additional financing in 2001 to fund our operations, acquire new products, and make planned capital expenditures, which financing may not be available on acceptable terms, if at all; (iv) we may not be able to identify appropriate licensing, co-promotion or acquisition candidates in the future or to take advantage of the opportunities we identify; (v) we and our products face significant competition; (vi) if we do not successfully manage any growth we experience, we may experience increased expenses without corresponding revenue increases; (vii) we are dependent on single sources of supply for all of the products we offer; and (viii) additional factors set forth in the Company's Securities and Exchange Commission filings including its Annual Report on Form 10-K for the period ended December 31, 2000 and its Form 10-Q for the period ending March 31, 2001.
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CONTACT: Women First HealthCare, Inc.
Diane Donohue, Manager, Public Relations
(858) 509-3860
donohue@womenfirst.com
The Investor Relations Group, Inc.
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