Quigley (QGLY) and Phosphagenics Ltd. Announce Formation of non-Prescription Remedy Development Joint Venture
The Quigley Corporation (NASDAQ: QGLY) and Phosphagenics Limited today announced the formation of a joint venture to develop a wide range of non-prescription remedies for worldwide distribution and sale.
The joint venture entity is the newly formed Phusion Laboratories LLC. Phusion combines Phosphagenics' state-of-the-art science and research team with Quigley's robust distribution network and OTC market expertise to develop and market powerful OTC products.
The new products will be powered by Phosphagenics' proprietary, patented TPM™ technology. TPM™ is a patient-friendly and cost effective system used to deliver proven pharmaceutical and nutraceutical products. The ability of TPM™ delivery technology to increase the amount and depth of penetration of active molecules into the skin has been compellingly demonstrated in human clinical trials. It is effective in delivering OTC molecules orally, topically and via inhalation.
"Phosphagenics' extraordinary technology lends itself perfectly to delivery of OTC drugs as the inclusion of TPM™ will increase the absorption and efficacy of many OTC active ingredients," said Quigley CEO Ted Karkus. "Our signature product Cold-EEZE® has built its reputation and robust distribution network on its uniquely effective delivery system. We see the world-class scientific research team at Phosphagenics as the perfect partner to help us leverage our existing network and consumer product expertise."
Harry Rosen, CEO of Phosphagenics, said, "Phosphagenics has invested more than nine years in developing its proprietary TPM™ technology. Quigley has a proven track record of distributing its OTC lines throughout the US. We see extraordinary OTC products coming out of this joint venture for large markets such as acne treatment and smoking cessation where irritation is a major issue. Our technology has demonstrated that it can deliver products more effectively than other commercial products, while significantly reducing irritation. We believe our partner has an exceptional ability to effectively market and distribute these potential future products."
"Because we are focusing on OTC drugs, for which no prescription is required, we will avoid the tens of millions of dollars of costs and years of development associated with launching a new prescription drug," added Mr. Karkus.
Under the terms of the agreement, Quigley and Phosphagenics will each own 50% of Phusion Laboratories, LLC. Phusion has been granted a worldwide, exclusive, royalty-free license to the TPM™ technology for use in a wide range of non-prescription products, applications and active ingredients. Quigley will make a one time payment to Phosphagenics of $1 million and the issuance to Phosphagenics of 1.44 million shares of Quigley common stock.
Additionally, Quigley has contributed $500,000 of initial capital and committed up to $2 million toward the initial development and marketing costs of new products for Phusion Laboratories to commercialize. Phosphagenics will conduct and oversee much of the product development, formulation, testing and other R&D needed by the company. Quigley will oversee much of the distribution, sales and marketing.
The joint venture entity is the newly formed Phusion Laboratories LLC. Phusion combines Phosphagenics' state-of-the-art science and research team with Quigley's robust distribution network and OTC market expertise to develop and market powerful OTC products.
The new products will be powered by Phosphagenics' proprietary, patented TPM™ technology. TPM™ is a patient-friendly and cost effective system used to deliver proven pharmaceutical and nutraceutical products. The ability of TPM™ delivery technology to increase the amount and depth of penetration of active molecules into the skin has been compellingly demonstrated in human clinical trials. It is effective in delivering OTC molecules orally, topically and via inhalation.
"Phosphagenics' extraordinary technology lends itself perfectly to delivery of OTC drugs as the inclusion of TPM™ will increase the absorption and efficacy of many OTC active ingredients," said Quigley CEO Ted Karkus. "Our signature product Cold-EEZE® has built its reputation and robust distribution network on its uniquely effective delivery system. We see the world-class scientific research team at Phosphagenics as the perfect partner to help us leverage our existing network and consumer product expertise."
Harry Rosen, CEO of Phosphagenics, said, "Phosphagenics has invested more than nine years in developing its proprietary TPM™ technology. Quigley has a proven track record of distributing its OTC lines throughout the US. We see extraordinary OTC products coming out of this joint venture for large markets such as acne treatment and smoking cessation where irritation is a major issue. Our technology has demonstrated that it can deliver products more effectively than other commercial products, while significantly reducing irritation. We believe our partner has an exceptional ability to effectively market and distribute these potential future products."
"Because we are focusing on OTC drugs, for which no prescription is required, we will avoid the tens of millions of dollars of costs and years of development associated with launching a new prescription drug," added Mr. Karkus.
Under the terms of the agreement, Quigley and Phosphagenics will each own 50% of Phusion Laboratories, LLC. Phusion has been granted a worldwide, exclusive, royalty-free license to the TPM™ technology for use in a wide range of non-prescription products, applications and active ingredients. Quigley will make a one time payment to Phosphagenics of $1 million and the issuance to Phosphagenics of 1.44 million shares of Quigley common stock.
Additionally, Quigley has contributed $500,000 of initial capital and committed up to $2 million toward the initial development and marketing costs of new products for Phusion Laboratories to commercialize. Phosphagenics will conduct and oversee much of the product development, formulation, testing and other R&D needed by the company. Quigley will oversee much of the distribution, sales and marketing.
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