Nutraceutix Inc. Initiates Development of Novel Once-Daily Tramadol With Patented Controlled Delivery Technology

Business Wire, Jan 24, 2001

Business Editors

REDMOND, Wash.--(BW HealthWire)--Jan. 24, 2001

Nutraceutix Inc. (OTCBB: NUTX), a leading provider of proven technologies and products for the nutraceutical and pharmaceutical industries, has entered into an agreement with Lehigh Valley Technologies, Allentown, Pa., to co-develop Tramadol, a prescription pain medication, utilizing patented controlled delivery technology (CDT(TM)).

Last year, Nutraceutix Inc. acquired exclusive worldwide rights on CDT(TM), U.S. Patent 6,090,411, from Temple University School of Pharmacy, Philadelphia, for the over-the-counter (OTC) and prescription drug markets, as well as the dietary supplement and nutraceutical markets.

The companies will develop controlled delivery formulations of Tramadol to provide predictable, long-lasting pain relief. CDT(TM) technology will ensure a steady, programmed release of the active ingredient over time for optimum absorption.

Tramadol, a widely prescribed, synthetic analgesic, is not a non-steroidal anti-inflammatory drug (NSAID), and does not counteract the effects of certain anti-hypertensive substances, such as diurectics, beta blockers and ACE-inhibitors.

A common problem in pain management with the widespread use of NSAIDs is people not receiving optimal pain relief and also the lack of compliance associated with patients having to take multiple doses daily in order to help control pain.

Tramadol is currently marketed in the United States by Johnson & Johnson and is only available in an immediate-release, three to four doses per day format. Sales for the existing immediate-release version of Tramadol for the year ending July 2000 were in excess of $475 million.

David T. Howard, president and chief executive officer of Nutraceutix, stated, "We are pleased to be working with Lehigh Valley Technologies once again. Our first license of CDT(TM) technology in the OTC store brand market with Lehigh Valley Technologies involved decongestants.

"With these two new novel CDT(TM) prescription analgesics, we address pain relief, one of the most prevalent and debilitating health concerns. The co-development of CDT(TM) Tramadol is an important step in the growth of Nutraceutix's prescription drug franchise, and we anticipate realizing revenues from this partnership after 2005."

Nutraceutix Inc. possesses proven technologies and products for the nutraceutical industry. In addition to patented ingredients like Calcium D-Glucarate, Nutraceutix provides patented and proprietary technologies like CDT(TM) Controlled Delivery Technology, MDT(TM) Molecular Dispersion Technology, SET(TM) Self Emulsifying Technology and LiveBac(R) Probiotics.

Nutraceutix technologies provide distinctive supplements with tangible benefits for the consumer and competitive commercial advantages. For more information on Nutraceutix, please call 800/548-3222, or visit www.nutraceutix.com.

Lehigh Valley Technologies is a cGMP pharmaceutical company focusing on two specific areas: the decongestant market and pain management. Lehigh Valley Technologies Inc. intends to bring the new controlled delivery technology available through Nutraceutix's patented CDT(TM) technology to these therapeutic classes.

Except for any historical information, the matters discussed in this press release contain forward-looking statements, including activities, events or developments that the company expects, believes or anticipates will or may occur in the future. Such statements are subject to a number of assumptions, risks and uncertainties.

Readers are cautioned that such statements are not guarantees of future performance and that actual results or developments may differ materially from those set forth in the forward-looking statement.