SAN DIEGO, Sept. 27, 2001 (PRIMEZONE) -- Women First HealthCare, Inc. (Nasdaq:WFHC) has received notice that Essentia Pharmaceuticals intends to cease operations in North America. As a result, Women First's previously announced co-promotion agreement with St. Louis-based Essentia will terminate Sept. 27, 2001. Essentia and Women First have entered into certain arrangements to satisfy Essentia's contractual obligations under the co-promotion agreement. In addition, Banner Pharmacaps(r), Inc., an affiliate of Essentia, has agreed to develop a proprietary new prescription prenatal vitamin product in softgel form for Women First.
Women First announced the two-year co-promotion agreement in April. The agreement required Essentia's 50-person sales force to detail Women First's estrogen replenishment products, ORTHO-EST(r) Tablets and Esclim(tm) estradiol transdermal system, to General and Family Practice Physicians throughout Essentia territories in the U.S. The revenue generated by this agreement was subject to sharing between the parties above a pre-established base line. It is Women First HealthCare's intention to seek a replacement company.
In exchange for a release from the co-promotion agreement and in addition to the other arrangements, Women First HealthCare will receive a development stage proprietary softgel prenatal prescription vitamin without payment of a development fee to Banner. It is expected that the product will be available for sale toward the end of 2002. Women First will contract with Banner for manufacturing of the product. In addition, Women First and Banner have expressed a willingness to enter discussions that could lead to an expanded collaboration and broader exclusivity rights subject to mutual agreement on terms. Banner is one of the world's leading producers of encapsulated pharmaceutical and nutritional products.
Termination and settlement of the co-promotion agreement is not expected to reduce 3rd quarter earnings. For 4th quarter and 2002, there could be a small negative impact unless the Company is able to find a replacement sales force or acquire additional new products.
Women First chairman, president and CEO Edward F. Calesa stated, "We will lose the sales support of an excellent group, but as part of the arrangement with Banner Pharmacaps(r) we will acquire rights to a prescription product without the customary development fee. We are acquiring a proprietary product that may generate revenues for many years once it is approved. The total market for prenatal vitamins is estimated to be $170 million in the U.S. The prenatal vitamin extends our product line beyond the midlife woman but utilizes the existing OB/GYN distribution channel. We believe the long-term value of the asset far exceeds the potential short-term impact."
About Women First HealthCare, Inc.
Women First HealthCare, Inc. (Nasdaq:WFHC) is a San Diego-based specialty pharmaceutical company. Founded in 1996, its mission is to help midlife women make informed choices regarding their health care and to provide pharmaceutical products-the Company's primary emphasis-and lifestyle products to meet their needs. Women First HealthCare is specifically targeted to women age 40+ and their clinicians. An internationally recognized Health Advisory Board of experts in women's health guides Women First HealthCare in the development of information and products for women and clinicians as women transition from perimenopause through postmenopause. The Company operates in three segments: Pharmaceuticals, Consumer Business, and Corporate Marketing. Product focus currently includes estrogen replenishment, headache management, dietary supplementation, and self-care/lifestyle. Further information about Women First HealthCare can be found online at www.womenfirst.com, About Us and Investor Relations. Information about the Company's As We Change(r) national mail order catalog and Internet retailer can also be found online at www.aswechange.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 not be able to identify appropriate licensing, co-promotion or acquisition candidates in the future or to take advantage of the opportunities we identify; (iv) we and our products face significant competition; (v) if we do not successfully manage any growth we experience, we may experience increased expenses without corresponding revenue increases; (vi) we are dependent on single sources of supply for all of the products we offer; and (vii) 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 June 30, 2001.