HONG KONG, Sept. 12, 2011 /PRNewswire/ - AlphaRx Inc. (OTC BB:ALRX.OB) is pleased to announce the following Corporate update:
Product Development Update
On July 5, 2011 the Board and management adopted a new business plan that the Company believes will improve the Company's performance. The new business plan narrows the Company's focus to developing and commercializing 2 existing product candidates "Indaflex" and "ARX8203" internally, for the pain market.
Indaflex, our flagship product in Mexico, is currently bringing in a royalties of $10,000 per month and is ramping up to $15,000 per month. In addition to Mexico, we are preparing to registering Indaflex in Portugal in conjunction with Andromaco Pharma, Mexico. We have received a proposal from Formifarma, an experienced regulatory firm based in Lisbon, Portugal and we are currently reviewing these options. Other EU countries will follow and the potential annual royalty can be projected at over $12 million from EU countries.
With an estimate of around $100-200 million for Gout therapy alone, ARX8203 becomes the near term driver for AlphaRx and also our most exciting product opportunity. We are proposing to conduct an efficacy and safety trial on approximately 90 Gout patients.
Another potential blockbuster is GAI-122 for the China Market, as China reports more patients with stroke than anywhere else in the world. The total market potential for GAI-122 in China is approximately $1.68 billion. GAI-122 is being developed by our partner Gaia BioPharma under a licensing agreement.
Corporate Development Update
We have completed a small private placement of $100,000 of which $60,000 was placed to our CEO and directors; the funds will be used for general working capital. We have converted all short term demand loans to term loans with maturity on December 21, 2013. We have recently engaged various professional firms to provide certain services and advice that we strongly believe will increase shareholder value. We are exploring various growth strategies including diversifying into other fast growing health care related businesses and we are evaluating acquisition opportunities that we believe could provide substantial earnings to the Company in a short period of time.
Forward Looking Statements: This release contains forward-looking statements within the meaning and pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995 and involve risks and uncertainties that may individually or mutually impact the matters herein described, including but not limited to product development and acceptance, manufacturing, competition, regulatory and/or other factors, which are outside the control of the companies.
SOURCE AlphaRx Inc.