Kos Pharmaceuticals Announces Consolidation of Manufacturing Operations

Apr 19, 2001, 01:00 ET from Kos Pharmaceuticals, Inc.

    MIAMI, April 19 /PRNewswire/ -- Kos Pharmaceuticals, Inc. (Nasdaq:   KOSP)
 announced today that, effective July 1, 2001, the Company will consolidate
 manufacturing operations for its currently marketed Niaspan(R) product and for
 its new Niaspan/lovastatin combination product, Advicor(TM), within its
 larger, more efficient manufacturing facility located in Edison, New Jersey.
 Simultaneous with this consolidation, the Company's current Niaspan
 manufacturing site in Hollywood, Florida, will be converted to a dedicated
 development and scale-up facility for the solid-dose products in the Company's
 research pipeline.
     The combination of the manufacturing consolidation and the establishment
 of a dedicated solid-dose development facility is expected to generate
 significant manufacturing efficiencies, reduce development costs, and, more
 important, shorten the development time for the Company's internally-developed
 future products.  As a result of this change in operations, about
 20 manufacturing-related positions in Hollywood will be eliminated, and the
 Company will incur a one-time restructuring charge of approximately $600,000
 in the first half.
     The Edison facility, which has already been approved by the FDA for the
 manufacture of Niaspan, has significantly greater production capacity and is
 considerably more efficient than the Hollywood facility.  The consolidation is
 expected to result in a 20% reduction in manufacturing costs. The new
 Advicor(TM) product is currently being reviewed by the FDA, and it is expected
 to receive marketing clearance from the FDA in the second half of 2001.
     Kos is currently developing two solid-dose cardiovascular drugs as well as
 several solid-dose drug delivery systems.  By dedicating the Hollywood
 facility exclusively to drug development and scale-up activities, the Company
 expects to save development costs and time by no longer having to out-source
 certain development and scale-up steps and by avoiding development delays
 necessitated by scheduling scale-up activities during manufacturing down-time.
     "This operational change is a natural step in our Company's continued
 rapid growth as a fully integrated pharmaceutical company," said Daniel M.
 Bell, President and Chief Executive Officer of Kos.  "Although we are
 extremely pleased with the manufacturing and development efficiencies we shall
 gain from this change, we are disappointed that it will necessitate job
 dislocations for a number of our valued South Florida employees.  We are doing
 all we can, however, to assist the affected employees in the transition."
     Niaspan is Kos Pharmaceuticals' proprietary once-daily niacin formulation
 for the treatment of cholesterol disorders.  Kos Pharmaceuticals, Inc. is a
 fully integrated specialty pharmaceutical company engaged in developing and
 commercializing proprietary prescription pharmaceutical products, primarily
 for the treatment of chronic cardiovascular and respiratory diseases.  Kos has
 drug delivery capabilities in both solid-dose and aerosolized formulation
 technologies.
 
     Certain statements in this press release, including statements relating to
 the timing of the FDA's expected approval of the Company's new Advicor(TM)
 product, future manufacturing cost reductions, and future cost reductions and
 timing efficiencies for product development and scale-up activities, are
 forward-looking and are subject to risks and uncertainties.  These risks and
 uncertainties include the Company's ability to meet the conditions necessary
 to obtain funding under its funding arrangements, including payments from
 DuPont Pharmaceuticals Company, the timing for the development and approval of
 the Company's new Advicor(TM) product, the Company's ability to affect such
 cost and timing improvements, the effect of conditions in the pharmaceutical
 industry and the economy in general, as well as certain other risks.  A more
 detailed discussion of risks attendant to the forward-looking statements
 included in this press release is set forth in the "Forward-Looking
 Information: Certain Cautionary Statements" section of the Company's Annual
 Report on Form 10-K for the period ended December 31, 2000, filed with the
 Securities and Exchange Commission, and in other reports filed with the SEC.
 
 

SOURCE Kos Pharmaceuticals, Inc.
    MIAMI, April 19 /PRNewswire/ -- Kos Pharmaceuticals, Inc. (Nasdaq:   KOSP)
 announced today that, effective July 1, 2001, the Company will consolidate
 manufacturing operations for its currently marketed Niaspan(R) product and for
 its new Niaspan/lovastatin combination product, Advicor(TM), within its
 larger, more efficient manufacturing facility located in Edison, New Jersey.
 Simultaneous with this consolidation, the Company's current Niaspan
 manufacturing site in Hollywood, Florida, will be converted to a dedicated
 development and scale-up facility for the solid-dose products in the Company's
 research pipeline.
     The combination of the manufacturing consolidation and the establishment
 of a dedicated solid-dose development facility is expected to generate
 significant manufacturing efficiencies, reduce development costs, and, more
 important, shorten the development time for the Company's internally-developed
 future products.  As a result of this change in operations, about
 20 manufacturing-related positions in Hollywood will be eliminated, and the
 Company will incur a one-time restructuring charge of approximately $600,000
 in the first half.
     The Edison facility, which has already been approved by the FDA for the
 manufacture of Niaspan, has significantly greater production capacity and is
 considerably more efficient than the Hollywood facility.  The consolidation is
 expected to result in a 20% reduction in manufacturing costs. The new
 Advicor(TM) product is currently being reviewed by the FDA, and it is expected
 to receive marketing clearance from the FDA in the second half of 2001.
     Kos is currently developing two solid-dose cardiovascular drugs as well as
 several solid-dose drug delivery systems.  By dedicating the Hollywood
 facility exclusively to drug development and scale-up activities, the Company
 expects to save development costs and time by no longer having to out-source
 certain development and scale-up steps and by avoiding development delays
 necessitated by scheduling scale-up activities during manufacturing down-time.
     "This operational change is a natural step in our Company's continued
 rapid growth as a fully integrated pharmaceutical company," said Daniel M.
 Bell, President and Chief Executive Officer of Kos.  "Although we are
 extremely pleased with the manufacturing and development efficiencies we shall
 gain from this change, we are disappointed that it will necessitate job
 dislocations for a number of our valued South Florida employees.  We are doing
 all we can, however, to assist the affected employees in the transition."
     Niaspan is Kos Pharmaceuticals' proprietary once-daily niacin formulation
 for the treatment of cholesterol disorders.  Kos Pharmaceuticals, Inc. is a
 fully integrated specialty pharmaceutical company engaged in developing and
 commercializing proprietary prescription pharmaceutical products, primarily
 for the treatment of chronic cardiovascular and respiratory diseases.  Kos has
 drug delivery capabilities in both solid-dose and aerosolized formulation
 technologies.
 
     Certain statements in this press release, including statements relating to
 the timing of the FDA's expected approval of the Company's new Advicor(TM)
 product, future manufacturing cost reductions, and future cost reductions and
 timing efficiencies for product development and scale-up activities, are
 forward-looking and are subject to risks and uncertainties.  These risks and
 uncertainties include the Company's ability to meet the conditions necessary
 to obtain funding under its funding arrangements, including payments from
 DuPont Pharmaceuticals Company, the timing for the development and approval of
 the Company's new Advicor(TM) product, the Company's ability to affect such
 cost and timing improvements, the effect of conditions in the pharmaceutical
 industry and the economy in general, as well as certain other risks.  A more
 detailed discussion of risks attendant to the forward-looking statements
 included in this press release is set forth in the "Forward-Looking
 Information: Certain Cautionary Statements" section of the Company's Annual
 Report on Form 10-K for the period ended December 31, 2000, filed with the
 Securities and Exchange Commission, and in other reports filed with the SEC.
 
 SOURCE  Kos Pharmaceuticals, Inc.