Epitope and SmithKline Beecham Consumer Healthcare Group Announce Successful Completion of Due Diligence for OraSure Device

Strategic Insights -

Beaverton, Ore. - Epitope, Inc. (AMEX: EPT) has announced the successful completion of the due diligence process for its agreement with the SmithKline Beecham Consumer Healthcare group. As a result, SB will assume worldwide marketing responsibility for Epitope's OraSure(R) oral specimen collection device, except for specific markets and regions. The agreement calls for SB to fund further development of other diagnostic products and technology by Epitope, which SB will market to professionals and eventually consumers. Epitope will manufacture the products for sale to SB at an agreed-upon transfer price and will receive royalties based on SB sales.

Key Takeaways:

  • The agreement between Epitope and SmithKline Beecham Consumer Healthcare group has been successfully completed, with SB assuming worldwide marketing responsibility for the OraSure(R) oral specimen collection device.
  • The device has several advantages over traditional blood tests, including no exposure to blood draws for health professionals and a non-invasive test for patients.
  • SB will fund further development of other diagnostic products and technology by Epitope, which SB will market to professionals and eventually consumers.
  • Epitope will manufacture the products for sale to SB at an agreed-upon transfer price and will receive royalties based on SB sales.
  • The majority of the $5 million escrowed funds will be released upon extension of dating for the OraSure(R) device.
  • If extended dating is not achieved, royalties may be credited against the initial $1 million license fee until dating is extended.
  • Epitope received FDA approval on December 23, 1994, to market the OraSure device to medical professionals for testing for antibodies to HIV-1.

Statistics:

  • $1 million: Total license fee payment made by SB to Epitope.
  • $5 million: Amount deposited into escrow by SB.
  • 2 minutes: Time required for patients to use the OraSure device.
  • 1:1: Ratio of pad-to-stick device.

Sources:

  • PRNewswire/ (April 25, 1995)
  • Epitope's press releases and quarterly reports are available through PR Newswire's Company News On-Call and Quarterlies On-Call fax services at 1-800-758-5804, extension 285632.
  • Epitope's quarterly report from December 1994 is available through the above service.