Innovus Pharma Provides Corporate Update
LA JOLLA, Calif., Aug. 19, 2013 (GLOBE NEWSWIRE) -- Innovus Pharmaceuticals,
Inc. ("Innovus Pharma" or the "Company") (OTCBB:INNV)
(http://www.innovuspharma.com) announced today a corporate mid-year update
covering Company activities, expected near-term events and comments on recent
market conditions, as follows:
2013 has been a transformative year for Innovous Pharma as we refined our
business objectives, expanded our management team, continued to build a strong
and global pipeline, secured financing for the company, increased liquidity of
our stock, signed multiple commercial distribution agreements for two of our
products and generated revenues.
The Company corporate objectives for 2013 are as follows:
1.Expand Management team
2.Secure financing for its on-going operations
3.Increase cash reserves
4.Secure "clean" audit opinion on Company's 2012 Annual Financial Statements
5.Build a strong and global pipeline in large markets
6.Launch three of its OTC or consumer health products
7.Begin generating revenue from product sales
8.Sign commercial partnerships for its products
Expand Management Team
The Company has put together a very seasoned and experienced management team
with an excellent track record of product development, partnering, commercial
operations and growth.
On January 22, 2013, Innovus appointed Bassam Damaj, Ph. D. to serve as its
President and Chief Executive Officer and a member of the Board of Directors.
Dr. Damaj replaced Vivian Liu, who continues to serve on the Board of
Directors. Dr. Damaj has brought a surge of energy to the Company and has
helped to re-focus and execute on the Company's goals. Before joining Innovus,
Dr. Damaj served as President and Chief Executive Officer of Apricus
Biosciences, Inc., (Nasdaq:APRI) from December 2009 until November 2012.At
Apricus Bio, Dr. Damaj was responsible for the approval of its lead drug
Vitaros, a treatment for erectile dysfunction and for the major commercial
partnerships done with Takeda, Sandoz-Novartis, Abbott, Bracco and others.
On February 19, 2013, Robert Verfurth was hired as Innovus' Vice President of
Sales and Marketing.Mr. Verfurth is responsible for the sales and marketing
efforts of the Company's pipeline.Mr. Verfurth was most recently a part of
the marketing and sales team at Apricus Biosciences.Prior to Apricus, until
mid 2012, Mr. Verfurth was Vice President, US Sales-West for Becton Dickinson
Diagnostics and served as Vice President, US Sales and Support for the
molecular diagnostic start-up GeneOhm Sciences beginning in 2005.Prior to
GeneOhm, Mr. Verfurth held a number of commercial roles, including Vice
President of Sales at both Prometheus Laboratories and Dianon.
On May 28, 2013, Morgan Brown, C.P.A., M.B.A. joined Innovus as Executive Vice
President and Chief Financial Officer with responsibility for finance,
accounting, human resources, information technology and investor
relations.Mr. Brown brings with him more than 20 years of financial and
accounting experience and has worked with the small management team to lay the
groundwork for a future up listing to NASDAQ.Prior to joining Innovus, Mr.
Brown served in a similar capacity at World Heart Corporation (Nasdaq:WHRT), a
medical device company, from August 2009 until August 2012.Prior to his
position at World Heart, Mr. Brown served as Chief Financial Officer at CRI
Lifetree, a full-service CRO, and at NPS Pharmaceuticals, Inc., a biotech
Rounding out the senior management team, on July 22, 2013, Innovus invited
Randy Berholtz, Esq. to act as corporate Secretary and legal consultant.Mr.
Berholtz has an impressive resume, working most recently as Executive Vice
President, General Counsel, and Secretary at Apricus Biosciences, Inc.
(Nasdaq: APRI).Mr. Berholtz has served in many leadership roles with various
life science companies, including ACON Laboratories, Inc., IngleWood Ventures,
L.P., and Nanogen, Inc.The Company looks forward to having his expertise
available to assist with complex legal issues and corporate governance.
In June 2013 Innovus formed and appointed the first member, Robert E. Hoffman,
to its Business and Finance Advisory Board.The Company plans to utilize the
Business and Finance Advisory Board members' experience and backgrounds for
strategic planning and industry insight.As the first member, Mr. Hoffman's
broad financial experience in the biopharmaceuticals sector makes him a
valuable resource for the current management team at Innovus.Currently, Mr.
Hoffman is Senior Vice President, Finance and Chief Financial Officer of Arena
Pharmaceuticals, Inc. (Nasdaq:ARNA).
Secure Financing for its On-Going Operations and Increase Cash Reserves
During the six months ended June 30, 2013, the Company worked hard to secure
financing for its growth and ongoing operations.To date we have secured close
to $1.2M in notes and equity financing mainly from our President & CEO.The
Company is also in discussion to secure non-dilutive funding from on-going
commercial and distribution partnerships for its products.
Secure "Clean" Audit Opinion on the Company's 2012 Annual Financial Statements
The going concern assumption in the Generally Accepted Auditing Standards SAS
59, The Auditor's Consideration of an Entity's Ability to Continue as a Going
Concern, requires an auditor to evaluate conditions or events that raise
questions about an entity's ability to continue as a going concern.Typically,
if an auditor has concerns about a firm's ability to continue as a going
concern, the audit opinion will contain a paragraph outlining issues with this
assumption.In the Company's 10-K report for the year ended December 31, 2012,
the Company's auditors did not include any such going concern paragraph in
their audit opinion.
"Having the going concern issue removed from our audit opinion for the first
time in many years is a significant accomplishment for our relatively new
management team, further affirming our continued success in the execution of
the Company's goals," noted Dr. Bassam Damaj."Having the going concern
opinion removed not only validates our business strategy but also instills
further trust in our management team by our shareholders, as well as, with the
numerous pharmaceutical companies, which we are in active partnership
discussions with at this present time."
Build a Strong and Global Pipeline in Large Markets
Building a strong and global pipeline was an important priority in
2013.Innovus has built a strong pipeline in the sexual dysfunction,
arthritis, cough and cold and acne therapeutic areas.In the sexual
dysfunction area, the Company acquired the ex-US rights to the patented
CIRCUMserum™ product to help with reduced penile sensitivity ("RPS") in
circumcised men and diabetic patients.CIRCUMserum works by making the skin
more sensitive with the continuous use of the product.In a patient use study,
over 80% of users responded positively and were satisfied.To bolster our
sexual dysfunction franchise, Innovus developed a proprietary treatment for
premature ejaculation ("PE"), a very large market targeting over 30% of
men.The product, EjectDelay™, is based on the active drug benzocaine which
delays ejaculation by over 4 minutes in clinical trials.The Company is
actively looking for additional products to complement its sexual dysfunction
The Company developed multiple other products: Apeaz™ for arthritis, Xyralid™
for hemorrhoids, zinc cough and cold lozenges and Innovus Acne Care for
acne.The arthritis and hemorrhoids products are topical.Apeaz is based on
the strong anti-inflammatory methyl salicylate which has been shown to repair
damaged tissues in mouse studies in addition to the effective pain management
it provides.Over 21 million people suffer from arthritis in the US and it is
a continuously growing market.Xyralid is based on the active drug lidocaine
which works by anesthetizing inflamed tissue.Over 50 million worldwide
hemorrhoid procedures are done per year for a condition that affects more than
50% of people over 50 years in United States.
Launch Three of its OTC or Consumer Healthcare Products
Innovus launched CIRCUMserum, a consumer healthcare product for reduced penile
sensitivity, in May 2013 and expects to launch EjectDelay, an FDA compliant
OTC gel for premature ejaculation, and Apeaz, an FDA compliant OTC cream for
arthritis pain relief, in the fourth quarter of 2013.In order to facilitate
the respective launches of these products, Innovus has entered into
co-promotion agreements with companies such as Consortia to promote within the
United States, including outside sales reps.Additionally, Innovus plans to
enter into license and distribution agreements with ex-US licensees for these
products.Finally, Innovus launched the www.ejectdelay.com website and plans
to launch other product specific websites in the future. Customers are
expected to be able to purchase Innovus products online.
Begin Generating Revenue from Product Sales
We plan to start generating revenue through the signing of multiple commercial
partnerships for EjectDelay and CIRCUMserum outside the United States during
the second half of 2013.
Sign Commercial Partnerships for its Products
The Company is pursuing an aggressive commercial partnering and distribution
strategy ex-US and plans to sign multiple commercial agreements during the
second half of 2013.
In summary, we are committed to driving topline performance with growth
products in key geographies, advancing and augmenting our pipeline and
aggressively managing our cost base. By doing these things well, we will
preserve the ability to invest in our future, potentially start to generate
strong cash flow and drive shareholder value and return over both the short
and long term.For more information, go to: www.innovuspharma.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of
With the exception of the historical statements, statements contained in this
release, including statements regarding the expected results of the studies,
may constitute "forward-looking statements" within the meaning of Section27A
of the Securities Act of 1933, as amended, and Section21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements are generally
identifiable by the use of the words "believes," "views," "expects,"
"projects," "hopes," "could," "will," "intends," "should," "estimate,"
"would," "may," "anticipates," "plans", "target", "goal" or the negative of
these words or other variations on these words or comparable terminology.
These forward-looking statements are subject to a number of risks and
uncertainties that may, individually or collectively, cause actual results to
differ materially from those contained in the forward-looking information, and
are based on the current expectations, estimates, forecasts and projections of
Innovus Pharma. Many of the risks and uncertainties are outside the control of
Innovus Pharma including Innovus Pharma's ability to continue to retain and
recruit talented individuals to fill out its management team, board of
directors and advisory board; Innovus Pharma's abilitysecure future financing
to support its on-going business needs, increase its cash reserves and to
launch its product portfolio; Innovus Pharma's ability obtain an unqualified
audit opinion on its financial statements in the future; Innovus Pharm's
ability to enter into commercial agreements for its product portfolio; and,
Innovus Pharma's ability to launch and begin generating revenues from its
product portfolio. Readers are cautioned not to place undue reliance on these
forward-looking statements as actual results could differ materially from the
forward-looking statements contained herein. Readers are urged to read the
risk factors set forth in Innovus Pharma's most recent annual report on Form
10-K and its other filings with the SEC. Copies of these filings are available
from the SEC's website or the "Investors" section of Innovus Pharma's website
at innovuspharma.com. Forward-looking statements contained in this press
release speak only as of the date hereof. Except as required by law, Innovus
Pharma undertakes no obligation to publicly release the results of any
revisions or updates to these forward-looking statements that may be made to
reflect events or circumstances after the date hereof, or to reflect the
occurrence of unanticipated events.
CONTACT: Innovus Pharma Contact:
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