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EXHIBIT 99.1
[SYNOVICS PHARMACEUTICALS, INC. LOGO]
COMPANY CONTACT: INVESTOR CONTACTS:
Synovics Pharmaceuticals, Inc. Sharon Will
Ronald Howard Lane, Ph.D. Saggi Capital Corp.
Chairman and CEO (352) 595-1391
(602) 508-0112 sharon@saggicapital.com
www.synovics.com
SYNOVICS PHARMACEUTICALS FINALIZES AGREEMENT TO
IN-LICENSE OTC GENERIC VERSION OF OMEPRAZOLE
NEW DRUG APPLICATION TARGETED FOR SECOND HALF OF 2007
PHOENIX - (MAY 7, 2007) - SYNOVICS PHARMACEUTICALS, INC. (OTCBB:
SYVC), a
specialty pharmaceutical company, today announced it has finalized
a definitive
agreement for a previously announced binding letter of intent for
exclusive,
world-wide rights to develop and commercialize PharmPro Division of
Fluid Air
Inc.'s proprietary over-the-counter (OTC) version of omeprazole.
The U.S. market
for the branded omeprazole OTC is greater than $600 million. There
is presently
no approved omeprazole OTC product competitive to the brand for the
U.S. market.
Synovics plans to submit an application to the U.S. Food and Drug
Administration
(FDA) for approval to manufacture and sell omeprazole OTC in the
second half of
2007.
In conjunction with the in-license agreement, Synovics made
front-end payments
totaling $500,000 to Fluid Air. The Company has milestone payment
obligations to
Fluid Air during the development and launch of the drug. Upon
approval by the
FDA for product manufacture and launch, Synovics will have an
ongoing obligation
to make payments of royalties based on gross revenue.
"Having a drug with the market potential of omeprazole OTC is a
very significant
event for the Company and we are pleased to partner with Fluid
Air," said
Synovics President and COO, David Coffin-Beach. "Fluid Air will
undertake the
chemical, manufacturing and control (CMC) development work for the
product using
its state-of-the art-manufacturing facilities and patented DuraGran
process as
an integral element of the manufacturing procedure. Following
successful
manufacture of the requisite drug registration batches, Synovics
will move into
pivotal bioequivalence clinical trials. We are currently targeting
the second
half of 2007 to file a product registration dossier with the FDA.
Omeprazole OTC
is the first in a series of potential drug candidates to be
introduced to
Synovics through our marketing and consulting partnership with VCG
& A, Inc.
(VCG)."
Mike Schultz, Managing Partner of VCG, stated, "Obtaining rights to
omeprazole
OTC represents the first milestone in our relationship with
Synovics. Our
projections indicate that if trends continue through the rest of
the year, the
branded omeprazole OTC could have a continuing growth of sales in
2007. The
timely filing and approval of this drug by the FDA could be
defining
<PAGE>
events for Synovics as this drug candidate has substantial upside
potential
revenue generation, as well as its strategic affect on Synovics'
position in the
generic market. Omeprazole OTC also fits well with Synovics' new
strategic
direction and planned drug development program. VCG is assisting
Synovics in
creating and implementing a sales and marketing plan as part of
their overall
product development program for omeprazole OTC."
ABOUT OMEPRAZOLE
Omeprazole is in a class of drugs called proton pump inhibitors
(PPI), which
block the production of acid by the stomach. Proton pump inhibitors
are used for
the treatment of conditions such as ulcers, gastroesophagel reflux
disease
(GERD), and the Zollinger-Ellison Syndrome, which are all caused by
stomach
acid. As a PPI, omeprazole blocks the enzyme in the wall
of
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