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Innovative Osteoarthritis Treatment Subject of Canadian Agreement
RIDGEFIELD, N.J.-- September 11, 1995 -- Biomatrix, Inc. (NASDAQ:BIOX) announced today that it has signed a multi-million dollar co-promotion and distribution agreement with Rhone-Poulenc Rorer Canada, Inc.("RPRCI"; a division of Rhone-Poulenc Rorer Inc. (NYSE:RPR) to market Synvisc(R), Biomatrix' innovative product for treating osteoarthritis, in Canada. Synvisc (hylan G-F 20) is the first of a series of medical products to be marketed based on Biomatrix' proprietary hylan technology.
Under the terms of this agreement, RPRCI will receive exclusive distribution rights for Synvisc in Canada for up to 15 years and pay Biomatrix a licensing fee of $3.5 million up front and $2 million at a certain sales volume. RPRCI also will cover the cost of Biomatrix' sales and customer service organizations, which will continue to support Synvisc in Canada in close cooperation with RPRCI. Biomatrix will manufacture and supply Synvisc to RPRCI through its Canadian subsidiary, Biomatrix Medical Canada Inc.
Endre A. Balazs, chief executive officer and chief scientific officer of Biomatrix, said, "I am extremely pleased to have RPRCI as our partner in Canada because of its long experience in the treatment of arthritis and its strong Canadian sales and marketing organizations. This agreement will allow Biomatrix to expand from our six product specialists, calling on only rheumatologists and orthopedic surgeons, to a sales force of 46, reaching both specialists and general practitioners. This cooperation, in addition to decreasing our marketing expenses, should further increase the volume of Synvisc sales which rose steadily at an average rate of 30 percent per quarter during the past 12 months."
Glenn R. Mattes, president and managing director of Rhone-Poulenc Rorer Canada Inc., said, "We are very enthusiastic about this agreement with Biomatrix which will allow us to deploy our sales, marketing and research organizations in support of a very innovative and exciting product."
Synvisc is an elastoviscous fluid that is injected into the knee joint to supplement and restore the lubricating, protecting and shock-absorbing properties of synovial fluid, which are compromised in osteoarthritis. First introduced into medicine by Biomatrix scientists, this treatment, known as viscosupplementation, relieves pain and improves mobility in osteoarthritic knee joints.
Synvisc is made of hylans, the unique biopolymers developed by Biomatrix from hyaluronan, the naturally occurring polysaccharide that stabilizes, lubricates and serves as a shock absorber in human tissues. Hylans are highly biocompatible, and their therapeutic effects are achieved, not through pharmacological, but through physical actions, that is, their viscous and elastic properties.
Synvisc has been available for patients in Canada since 1993 and in Sweden since June 1995, where it is distributed by Roche AB.
Biomatrix Medical Canada Inc., with headquarters in Montreal, Canada, is a subsidiary of Biomatrix Inc. (Ridgefield, New Jersey). Biomatrix Inc. is an international biomedical company that develops, manufactures and commercializes a series of proprietary biological polymers, called hylans, used in therapeutic medical applications and skin care products.
Rhone-Poulenc Rorer Canada Inc., headquartered in Montreal, Canada, is a division of Rhone-Poulenc Rorer Inc., a global pharmaceutical company dedicated to improving human health through discovery, development, manufacture and marketing of human pharmaceuticals.
Editor's note: Synvisc(R) is a registered trademark of Biomatrix Inc.
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