Sequus Pharmaceuticals Announces International Marketing Agreement With Schering-Plough Corporation For Caelyx

Business Wire, Sept 25, 1996

MENLO PARK, Calif.--(BUSINESS WIRE)--Sept. 25, 1996-

Product is Marketed in the United States Under The

Trade Name DOXIL(R)

SEQUUS Pharmaceuticals, Inc. (NASDAQ:SEQU) today announced an agreement under which Schering-Plough Corporation has obtained exclusive rights to distribute, market and sell CAELYX(TM) (doxorubicin HCl(pegylated liposomal)) worldwide, except for the United States, Japan and certain small markets subject to prior distribution arrangements. The agreement provides for a joint development team to coordinate the clinical development of CAELYX for the oncology market.

As previously announced, CAELYX has received marketing clearance from the European Commission and, therefore, Schering-Plough will commence the marketing of CAELYX in certain European Union (EU) countries and will apply for pricing approvals from individual EU countries where required. Under the terms of the multi-year agreement with a Schering-Plough affiliate, SEQUUS receives a $5.3 million upfront payment and will potentially receive additional payments totaling $27 million based on the achievement of certain targets and events. SEQUUS will receive payments for product sales to Schering-Plough. In addition, Schering-Plough will fund a portion of the clinical development program for CAELYX.

As part of the agreement, SEQUUS and Schering-Plough will jointly develop a worldwide clinical plan for investigating the use of CAELYX in the treatment of solid tumors. Each party will undertake clinical trials in specific indications, coordinated by a joint development team. As part of the agreement, Schering-Plough will conduct clinical trials for a solid tumor indication and will apply for regulatory approval in the Schering-Plough territories for all new indications, and will assist with pharmacoeconomic studies.

"We are very pleased to enter into an alliance with Schering-Plough, an acknowledged leader in the pharmaceutical industry," said SEQUUS Chairman and Chief Executive Officer I. Craig Henderson, M.D. "Schering-Plough set the standard for developing and commercializing biopharmaceutical products for the oncology market with the successful introduction of INTRON(R) A. In addition to placing their powerful international marketing organization behind CAELYX, this agreement also puts Schering-Plough's strong clinical research capabilities behind the further development of this product," Henderson said.

"We are pleased to join SEQUUS in this agreement, which should further strengthen Schering-Plough's position in oncology therapy," said Raul E. Cesan, President of Schering-Plough Pharmaceuticals. He noted that CAELYX will broaden the company's international oncology portfolio, which includes INTRON(R) A (alpha interferon) for treating various cancers and viral diseases; EULEXIN(R) (flutamide), a treatment for advanced and locally-confined prostate cancer; LEUCOMAX(R) (molgramostim), a granulocyte macrophage colony stimulating factor for the treatment of neutropenia; and, ETHYOL(R) (amifostine), a selective cytoprotective agent licensed from U.S. Bioscience, Inc.

CAELYX, developed and owned by SEQUUS, is a long-circulating STEALTH(R) liposome formulation of doxorubicin, an anticancer drug. This liposomal product is marketed in the United States by the SEQUUS sales force under the tradename DOXIL(R) for the treatment of Kaposi's sarcoma in people with AIDS whose disease has progressed on prior combination chemotherapy or in patients who are intolerant to such therapy. Full prescribing information may be obtained from the SEQUUS Professional Services group at 800/323-9049.

Schering-Plough is a research-based company engaged in the discovery, development, manufacturing and marketing of pharmaceutical and health care products worldwide.

Established in 1981 and located in Menlo Park, California (with offices in London, England), SEQUUS is developing proprietary biopharmaceutical products to treat cancer and infectious diseases. -0- NOTE: Any statements contained in this press release that relate to future plans, events or performance, including statements regarding future payments, clinical trials, product marketing or product development, are forward-looking statements that involve risks and uncertainties, including, but not limited to, those relating to the uncertainty of market acceptance, technology and product development, regulatory approval processes, intellectual property rights and litigation, competitive products and other risks identified in Securities and Exchange Commission filings. Actual results, events or performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. SEQUUS Pharmaceuticals, Inc. undertakes no obligation to publicly release the result of any revisions of 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.