PharmStar Pharmaceuticals, Inc. Closes on New Facility
ROCKY MOUNT, NC — (MARKET WIRE) — 05/18/11 — PharmStar Pharmaceuticals, Inc. , (PINKSHEETS: PHAR) (the “Company”), a U.S. drug developer, manufacturer and marketer of the FDA -approved, Over-the-Counter (OTC) liquid pain reliever Aquaprin™, today announced that it has closed a transaction to acquire a new CGMP facility to produce Aquaprin, the Company’s primary product, plus other line extensions.
On April 18, 2011 , the Company entered into an agreement to purchase the facility, which is located in Wilson, North Carolina . Wilson is the home to many pharmaceutical companies, and has an excellent support system for the industry. The building is next to Walter Kidde’s international headquarters.
The move is expected to expedite the Company’s commercialization of Aquaprin and complete a 17-year developmental journey for the patented liquid form of aspirin. While the Company continues to target a 12 to 14 month window to bring the product to market, hopes are high that moving to Wilson may help expedite the timeline.
PharmStar will begin moving into the new facility immediately, and has been preparing for the move over the last 30 days. PharmStar CEO Howard Phykitt founded Granutec, Inc. in 1985 in Wilson, NC before selling the company in 1989. He remained with the company through 1991. Mr. Phykitt then started Health Corporation , developing and marketing the original form of Aquaprin.
Mr. Phykitt stated, ” Jennifer Lantz , Director of the Economic Development Council , and the city of Wilson has been wonderful in this process, and I am genuinely excited to be back. They told me they wanted us to be here, and they proved it. I am appreciative of all the work they did to help us make this happen quickly.”
Mr. Phykitt continued, “This was a monumental day for me, and for the Company. It is a day that we have worked so hard for and have endured to create. I feel that I now can get on with my work of bringing this new product to life and building a great company.”
The Company did not issue any type of a new debt instrument, nor did the Company dilute its existing common share capital structure in order to finance the transaction, which is consistent with the company’s objective of minimizing future dilution of its shareholder base.