Northvale, New Jersey, Wednesday, December 13, 2006: Elite Pharmaceuticals, Inc. (“Elite” or the “Company”) (AMEX: ELI) has commenced a Strategic Alliance with Dr. Veerappan Subramanian under which Dr. Subramanian has joined Elite’s Board of Directors and will serve as strategic advisor to Elite on the research, development and commercialization of Elite’s existing pipeline, including its two lead pain products. As part of the Strategic Alliance with Elite, VGS Pharma LLC has made a $2 million equity investment in Elite.
Dr. Subramanian brings extensive experience in generics formulation and management, having been responsible for the development and FDA approval of over 150 specialty and generic drug products during his 33 years in the pharmaceutical industry. He was the founder and Chief Executive Officer of Kali Laboratories, Inc., a specialty generic pharmaceutical company, which was acquired by Par Pharmaceuticals in 2004 for consideration in excess of $135 million. Prior to Kali, Dr. Subramanian was the Vice President of Scientific Affairs for Zenith Laboratories, Inc., which was acquired by Ivax Corporation, in 1994, for approximately $600 million.
As part of its Strategic Alliance with Dr. Subramanian, Novel Laboratories, Inc. was formed as a separate specialty pharmaceutical company for the research, development, manufacturing, licensing and acquisition of specialty generic pharmaceuticals. Novel Laboratories will utilize Dr. Subramanian’s expertise and established track record of building successful pharmaceutical companies and will develop a new portfolio of products, independent of Elite’s current pipeline. Dr. Subramanian will serve as Chief Executive Officer of Novel Laboratories, which is owned 49% by Elite and 51% by VGS Pharma LLC, a company controlled by Kali Management, LLC. The Board of Directors of Novel Laboratories shall consist of two directors with Elite and VGS Pharma having the right to name one of the two directors.
“This Strategic Alliance provides Elite with a rare opportunity to join forces with a highly accomplished formulator and experienced business executive in the generic pharmaceutical industry. As the Chief Executive Officer of Novel, Dr. Subramanian will oversee the development and commercialization of Novel’s generic and specialty drug pipeline. In addition, we look forward to Dr. Subramanian’s service on Elite’s board and his strategic advice in support of Elite’s existing product pipeline. This will enable Elite to enhance its focus on its abuse resistant and controlled release opioid pain products, while maintaining a strong presence in the specialty generic drug industry through its interest in Novel,” said Bernard Berk, Chairman and CEO of Elite Pharmaceuticals.
“I look forward to the challenges of building a new company in the current dynamic global generic pharmaceutical environment and assisting Elite on its continued development of specialty pharmaceutical products in the therapeutic area of pain management. Elite’s technology and its state of the art facility are well suited for the development and manufacturing of the novel opioid drugs currently under development by the Company. I am excited to join forces with Buddy Berk, a seasoned pharmaceutical executive, in building Novel Laboratories, a new research-based specialty pharmaceutical company,” said Veerappan Subramanian, Ph.D., Chairman and CEO of Novel Laboratories, Inc.
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