LENEXA, KS — (MARKET WIRE) — 05/12/2005 — EaglePicher Pharmaceutical Services, LLC (EPPS), whose custom manufacturing services are used in all stages of drug development from pre-clinical to commercialization, today announced a series of capital improvements that it believes will further strengthen its position as a comprehensive outsourcing partner to the pharmaceutical industry in the discovery and commercialization of anti-cancer and other high-potency drugs. At the same time, the company said its supply position has been unaffected by its recent Chapter 11 filing and that of its parent company, EaglePicher Incorporated, and confirmed that its current supply and key long-term agreements with customers continue without interruption.
“Our customers have experienced a continuum of service, product and technical support,” said Steve Westfall, president of EPPS. “We are particularly gratified with the support they have shown during this period. EPPS is committed to the growth of its business, and that of its customers, through the improvements we have undertaken.” Among the improvements announced today are:
— Completion of an isolated cGMP Radiolabeling Suite (Lenexa, KS
facility), in recognition of the expectation to double Radiolabeling
revenues over the next two to three years.
— New state of the art suite (Harrisonville, MO facility) that allows
EPPS to double its commercial products capacity immediately and expand
development suite/production capacity by an additional 30 percent.
— Analytical upgrades at both facilities, including instrumentations and
Mr. Westfall said that the approximately $2 million in anticipated 2005 capital improvements were being funded from ongoing revenues, as well as from debtor-in-possession funding which became available when the company filed for Chapter 11 on April 11, 2005. Mr. Westfall said that capital spending is estimated to continue at roughly 15 percent of estimated 2005 sales, citing long-term plans to further broaden its technology and product offerings by adding large-scale hydrogenation and possible fermentation capabilities through future expansion at EPPS’ manufacturing facility in Harrisonville, Missouri.
In a previous announcement, EPPS said that increase in commercial sales of its oncology products, the initiation of five new development programs and a marked increase in projects requiring Good Manufacturing Practice (cGMP) radiolabeling was responsible for a 30 percent increase in revenues year over year in 2004. cGMP radiolabeling enables pharmaceutical companies to test new drugs with radioactive isotopes in human clinical trials.
In other developments, EPPS will host the Central USA Chapter of the International Isotope Society’s (IIS) Regional Symposium in Overland Park on June 9th and 10th. At that time, the Company is expected to unveil its newly renovated isolated suite, which is used in the custom radiolabeling of compounds under current cGMP. The symposium will provide a strong scientific program that focuses on the latest developments in the synthesis and applications of isotope and isotopically labeled compounds.