|AT THE COMPANY||At FRB | Weber Shandwick|
|Robert V. Toni, President & CEO
Benny Ward, CFO
|For General Info: Alison Ziegler
For Analyst Info: Julie Tu (212) 445-8456
For Media Info: Judith Sylk-Siegel (212) 445-8431
FOR IMMEDIATE RELEASE: November 7, 2001
PROVIDES JOHNSON & JOHNSON WOUND MANAGEMENT
EXCLUSIVE RIGHTS TO OCCLUSIVE DRESSING TECHNOLOGY,
THE COMPANY'S FIFTH MAJOR PRODUCT PLATFORM
Raleigh, NC, November 7, 2001 -- CLOSURE Medical Corporation (the "Company") (Nasdaq: CLSR), today announced an agreement to provide Johnson & Johnson Wound Management, a division of ETHICON, Inc., a Johnson & Johnson company, with worldwide supply, distribution and development rights to the Company's professional wound management platform, including the novel Liquid Occlusive Dressing ("LOD"). The agreement is in the form of an amendment to the terms of its existing licensing and development agreement with ETHICON. Under the amendment, Johnson & Johnson Wound Management receives rights to CLOSURE's professional wound management products indicated for the management and treatment of partial-thickness wounds. Financial terms of the transaction were not disclosed.
Commenting on today's news, Robert V. Toni, CLOSURE Medical's President and Chief Executive Officer said, "Finalizing this distribution partnership was an important 2001 milestone for the Company and we look forward to working with Johnson & Johnson Wound Management. Bringing a partner on board prior to initiation of the human clinical study and FDA approval allows us to leverage their expertise and, more importantly, helps accelerate the product's market introduction." Mr. Toni added, "As our fifth major product platform, LOD also serves to broaden our technology into new areas with what we believe will prove to be a significant benefit to patients."
CLOSURE anticipates beginning definitive clinical studies and submitting a 510(k) to the FDA for approval of LOD in mid-2002. Preliminary animal and human pilot clinical studies have shown LOD provides benefits such as faster healing, barrier to infection, ease of application, fewer dressing changes, and cost-effectiveness in managing partial-thickness wounds in the professional setting.
About Closure Medical
CLOSURE Medical Corporation, headquartered in Raleigh, North Carolina, develops, manufactures, and commercializes medical tissue adhesive products based on its proprietary cyanoacrylate technology. CLOSURE's proprietary technology has customized the physical and chemical properties of cyanoacrylates to develop medical adhesive formulations to close and seal topical skin wounds and incisions, as well as formulations to close or seal internal wounds. In addition to its products discussed herein, CLOSURE is also developing internal adhesives for wound closure and the possible treatment of emphysema, as well as developing liquid occlusive dressings for the treatment of a variety of partial thickness wounds, including pressure ulcers and skin tears.
DERMABOND Topical Skin Adhesive is a topical tissue adhesive used to close wounds from skin lacerations and incisions, minimally invasive surgery and plastic surgery. DERMABOND adhesive can be used as a replacement for topical sutures or staples and is marketed and distributed by Ethicon, Inc., a division of Johnson & Johnson, the world leader in wound closure products.
LIQUIDERM™ adhesive is the first and only cyanoacrylate medical device approved by the FDA for the over-the-counter ("OTC") adhesive bandage market. LIQUIDERM™ adhesive is painted on the wound, sealing it from dirt and germs, and creating a healing environment which allows natural healing to take place quickly. As the wound heals, the adhesive sloughs off naturally. CLOSURE recently signed a worldwide supply, distribution and development rights agreement with Johnson & Johnson Consumer Products Company which includes rights to its LIQUIDERM™ adhesive and its overall OTC wound care platform, including distribution rights to all present and future OTC products, except for SOOTHE-N-SEAL™ adhesive. Distribution of LIQUIDERM™ adhesive by Johnson & Johnson Consumer Products Company is expected to begin in early 2002.
SOOTHE-N-SEAL™ adhesive is indicated for the treatment of oral ulcers and mouth sores. It forms a protective barrier that shields oral ulcers from irritation due to eating and drinking while providing immediate and long-term pain relief. SOOTHE-N-SEAL™ adhesive is in the early stages of the product launch to the professional and consumer markets by Colgate Oral Pharmaceuticals, Inc.
The NEXABAND® liquid adhesive line consists of two products used in veterinary wound closure and wound care. The adhesives are used in cat declaw procedures as well as spay and neuter procedures. In July 2001, the Company entered into an agreement providing Abbott Laboratories ("Abbott") with worldwide supply, distribution and development rights to the NEXABAND® product line. In accordance with the agreement, Abbott has been granted immediate worldwide distribution rights to NEXABAND® adhesives excluding the United States and Canada. Upon the expiration of the Company's prior distribution arrangement in the second quarter of 2002, Abbott can begin the distribution of NEXABAND® products in the United States and Canada.
DERMABOND adhesive is a registered trademark of Ethicon, Inc.; SOOTHE-N-SEAL™ is a licensed trademark of Colgate Oral Pharmaceuticals, Inc.; LIQUIDERM™ is a trademark of CLOSURE Medical Corporation; and NEXABAND® is a registered trademark of CLOSURE Medical Corporation.
Johnson & Johnson Wound Management, a division of ETHICON, Inc., a Johnson and Johnson company, continues Johnson & Johnson's 100-year commitment to skin and wound care today with inventive products for chronic and acute wound management, burn care and hemostasis. For more information about Johnson & Johnson Wound Management, visit www.ethiconinc.com.
To receive CLOSURE's latest news release visit the Financial Relations Board's website at www.frbinc.com.
This release contains certain forward-looking statements which involve known and unknown risks, delays, uncertainties or other factors not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to the early stage of commercialization of the Company products; the progress of its research and development programs for future products; the need for regulatory approval and effects of governmental regulation; technological uncertainties; the satisfactory conclusion of negotiations with, and dependence on marketing partners, and dependence on patents and trade secrets, as well as those detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2000 filed with the Securities and Exchange Commission.