PRESS RELEASE DATED MAY 15, 1996
Published on June 18, 1996
Exhibit 99.1
NEWS RELEASE
For Immediate Release
Steven C. Quay, M.D., Ph.D. Greg Sessler, C.F.O.
SONUS Pharmaceuticals, Inc. SONUS Pharmaceuticals, Inc.
487-9500 (206) 487-9500
Traci Lance-Lumberg Peter A. Zambelli
Abbott Laboratories Hill and Knowlton, Inc.
(847) 938-3895 (212) 885-0303
SONUS PHARMACEUTICALS AND ABBOTT LABORATORIES
SIGN AGREEMENT FOR ECHOGEN(R) EMULSION IN THE U.S.
STRATEGIC ALLIANCE FORMED TO LAUNCH SONUS' INNOVATIVE
ULTRASOUND CONTRAST AGENT FOR CARDIOLOGY AND RADIOLOGY
NEW YORK, N.Y., MAY 15, 1996 -- SONUS Pharmaceuticals, Inc. (NASDAQ NNM:SNUS)
and Abbott Laboratories, Inc. (NYSE:ABT) announced today the signing of a
strategic alliance agreement focusing on the clinical development, marketing and
sale of EchoGen(R) Emulsion, a proprietary ultrasound contrast agent developed
by SONUS, for cardiology and radiology uses. Under the agreement, SONUS has
primary responsibility for clinical development, regulatory affairs, and medical
and technical support of EchoGen(R) and Abbott has primary responsibility for
U.S. marketing and sales. SONUS has retained certain co-promotion rights to
EchoGen(R) in the U.S.
Abbott will pay SONUS $31 million in up-front, clinical support and milestone
payments. SONUS will receive 47 percent of net EchoGen(R) revenues in the U.S. -
a portion of which SONUS must use to fund its obligations under the agreement.
The agreement spans the life of the patents relating to EchoGen(R). In addition,
Abbott has purchased, for $4 million, warrants to acquire 500,000 shares of
SONUS common stock, equal to about six percent (6%) of the company's outstanding
common stock. The warrants are exercisable over five years at $16 per share.
Abbott can acquire the rights to additional indications for EchoGen(R) by making
additional clinical support payments.
"Having Abbott's marketing strength combined with SONUS' alliances in Europe and
the Pacific Rim provides marketing coverage of about 85% of the worldwide market
for EchoGen," said Steven C. Quay, M.D., Ph.D., founder, president and CEO of
SONUS Pharmaceuticals, Inc. "SONUS will continue
[SONUS PHARMACEUTICALS LOGO]
SONUS/Abbott Labs Alliance
May 15, 1996
Page 2
to focus its resources on regulatory approvals in the U.S. and Europe, and
investigation of expanded uses of EchoGen."
-more-
Pivotal Phase 3 radiology and cardiology trials of EchoGen(R), intended to
satisfy the U.S. Food and Drug Administration (FDA) requirements for a New Drug
Application (NDA), have been completed. These Phase 3 trials will be the basis
for SONUS' NDA, which the company expects to file with the FDA this year,
followed shortly thereafter with a filing to the European Medicines Evaluation
Agency.
SONUS is investigating expanded uses for EchoGen(R) in breast and prostate
cancer, and CNS applications in European trials. In January, SONUS completed a
U.S. Phase 2 myocardial perfusion trial. Pre-clinical studies are also underway
or planned for other advanced imaging and therapeutic uses of SONUS' proprietary
PhaseShift(TM) and High-Q Factor(TM) technologies.
The statements made in this news release are forward looking. As discussed in
SONUS' annual report on Form 10-K dated March 29, 1996, EchoGen(R) will require
regulatory approval, which approval is subject to certain regulatory
requirements and can be lengthy, and market acceptance of EchoGen(R) will depend
on a number of factors, including safety, efficacy and ease of administration.
SONUS Pharmaceuticals, based in Bothell, Wash., is engaged in the research and
development of proprietary contrast agents for use in ultrasound imaging. The
company's products are being investigated to improve the management of heart
disease, cancer, infectious disease and other debilitating conditions.
NOTE: SONUS Pharmaceuticals' press releases are now available via PR Newswire's
Company News on Call service. To receive previous SONUS press releases via fax,
dial 1- 800-758-5804, ext. 108377. SONUS releases also can be accessed on the
Internet at PR Newswire's home page. The address is: http://www.prnewswire.com/
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