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Jonathan Houssian, CEO and founder of RxElite gave these key points of theacquisition:
"There are tremendous synergies for both companies both short and longterm," continued Mr. Houssian. "The acquisition immediately expands ourdomestic and worldwide opportunities to develop and profitably launch complexgeneric drugs. A key part of FineTech's business model has been to developvery difficult Active Pharmaceutical Ingredients (APIs), selling and licensingthem to major U.S. generic companies. FineTech's business model has resultedin several successful generic drug launches and significant profits forFineTech's partners over the last five years. RxElite plans to verticallyintegrate FineTech's business in order to capitalize on these type ofprofitable opportunities from FineTech's 5 current products, as well as their6 complex APIs under development."
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RxElite has acquired the physical facilities, the intellectual propertyand patents of FineTech and has retained all FineTech employees. FineTech'steam of 29, including 20 Ph.D. level scientists, conducts proprietary researchand development and manufactures complex APIs at its state-of-the-artmanufacturing facility in Israel. This facility operates in compliance withU.S. Food and Drug Administration's current good manufacturing practices(cGMP) standards. FineTech successfully passed its first FDA inspection inOctober 2004.
"My colleagues and I are very excited to join in the vision of RxElite andlook forward to the opportunities and challenges that await us," said Dr. ArieL. Gutman, President and Founder of FineTech. "We expect that our demonstratedability for the synthesis of complex APIs will make us a very productive andhighly valued contributor to RxElite as a newly combined business."
FineTech will operate as a separate division, through a wholly ownedsubsidiary of RxElite, and will provide immediate chemical synthesis, APIdevelopment capabilities, and strategic opportunities to RxElite. FineTechwill continue to actively work with current outside customers and to pursuedevelopment of new customer relationships for their services.
RxElite used proceeds from its recent senior convertible debt financing tocomplete the acquisition.
About FineTech
FineTech was founded in 1990 by Dr. Arie Gutman. FineTech specializes inthe production of high value, low volume APIs for the pharmaceutical industryand in collaborative R&D work and process development. The company possessesproprietary technology and confidential expertise in several important andunconventional areas of organic synthesis. FineTech operates in a 35,000 sq.feet, 6 building campus facility, equipped with state-of-the-art laboratory,production and quality control equipment.
About RxElite, Inc.
RxElite, Inc. develops, manufactures, and markets generic prescriptiondrug products in specialty generic markets. These markets include products inthe areas of anesthesia, sterile liquid dose drugs (including respiratoryinhalation drugs, ophthalmics, and injectable drugs), and transdermal patchproducts.
Safe Harbor Statement
Statements in this press release that are not statements of historical orcurrent fact constitute "forward-looking statements" within the meaning of thePrivate Securities Litigation Reform Act of 1995, involving known a
