MARKHAM, Ontario, March 8, 2006 (PRIMEZONE) -- AlphaRx Inc. (OTCBB:ALRX), an emerging biopharmaceutical company utilizing proprietary drug delivery technology to develop novel formulations of drugs, is pleased to announce that its joint venture company, Alpha AP Inc., located in Hong Kong, has received marketing approval for the sale of Flexogan(tm) in Hong Kong.
Flexogan is a deep penetrating topical cream that provides temporary relief from pain associated with joints, muscles and minor arthritis. Flexogan will be AlphaRx's first over-the-counter product to be marketed by Alpha AP under the AP brand in Asia. With AlphaRx's enhanced proprietary nano delivery system, the Company believes Flexogan's effectiveness will be significantly greater when compared to other over-the-counter topical preparations available on the market.
In addition to the entry of Flexogan into the Asian market, the Company recently announced that Flexogan Ultra, which is a scaled-down version of Indaflex(tm), also received marketing approval for the sale of Flexogan Ultra in Asia. Flexogan Ultra contains 1% Indomethacin which is used to relieve the pain, tenderness, inflammation (swelling), and stiffness caused by gout, arthritis, and other inflammatory conditions.
Flexogan is only the second pharmaceutical product, after Flexogan Ultra, allowed by the health authority to make a "Nano Formulation" marketing claim. The "Nano Formulation" claim will play a significant part in the marketing of Flexogan in Asia as it will provide a significant differentiator from other products available in the Asian market.
It is anticipated that Flexogan and Flexogan Ultra will be just two of the many innovative pharmaceutical products which will be licensed to Alpha AP to be marketed in Asia.
About Alpha AP Inc.
The newly formed Joint Venture, Alpha AP Inc. ("AAP"), is headquartered in Hong Kong. Under the terms of the Joint Venture agreement, Advance Pharmaceutical Co. Ltd. ("APC") will fund the Joint Venture, manufacture and market the products in China, Hong Kong, Korea and Japan.
Under the terms of the licensing agreement, as amended, AlphaRx will provide 10 products to the Joint Venture, to be marketed under the APC brand. In addition to its 50% equity in the Joint Venture, AlphaRx will receive a 5% royalty from the Joint Venture's gross sales. AlphaRx will also receive a one time licensing fee of US$11M from the Joint Venture, contingent upon completion of its Hong Kong public stock offering.
Forward-Looking Statements:
This release contains forward-looking statements within the meaning and pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995 and involve risks and uncertainties that may individually or mutually impact the matters herein described, including but not limited to product development and acceptance, manufacturing, competition, regulatory and/or other factors, which are outside the control of the Company.