SOURCE: Virogen, Inc.

August 06, 2008 09:02 ET

Virogen's Distributor Signs Multi-Million Dollar Contracts

MINNEAPOLIS, MN--(Marketwire - August 6, 2008) - Virogen, Inc. (PINKSHEETS: VRGI), the developer and patent holder of a revolutionary vaccine to combat Newcastle disease, a deadly disease that kills chickens worldwide, announced today that its distributor has signed contracts with the largest poultry producers in Egypt and Saudi Arabia. Vaccine sales of two million in the first year and four to five million thereafter are projected based upon these contracts alone.

While poultry vaccines are now available in the form of a spray or nasal inhalant, the product developed by Virogen is 2000 times more potent than those now on the market. It is injected directly into the chicken embryo and provides immunity up to ten weeks, with the average time to market being six weeks. The trend in protection of livestock is to administer vaccines in-ovo wherever possible, and the Virogen vaccine (inovo-immune) not only fulfills that preference, but is also far cheaper to produce, more effective, and far less expensive to the purchaser than conventional vaccines.

Newcastle is a deadly disease which can decimate entire flocks should an outbreak occur. The most recent outbreak, which occurred in California in the 90s, cost the government over $300 million and the loss of hundreds of thousands of birds. Another outbreak occurred in Texas with similar results. Most outbreaks worldwide go unreported. Fully 85% of the worldwide market resides outside of the United States with Asia, South America, and the Middle East comprising the largest markets. The company has made the strategic decision to concentrate its resources on these world markets in order to maximize revenues and market penetration in the shortest possible time frames. These markets are experiencing rapid growth as protein consumption abroad is rising at a far more rapid rate than in the US domestic market.

To position itself to reach the worldwide market, the company entered into a manufacturing agreement with Romvac, a company headquartered in Bucharest, Romania that has been manufacturing veterinary medicines since 1978. Romvac is an established, well respected manufacturer and meets the highest standards available for a certified distributor. Manufacturing within a European Union member country allows access to the EU market and allows the company to fast track registration of the vaccine in countries worldwide in the shortest possible time. This strategy has not only been cost effective, but has also shortened the commercialization to world markets by several years.

Paul Hogan, CEO of Virogen, Inc., notes that "Every production bird in the world is required to be vaccinated, and since Virogen's vaccine is the only in-ovo patent-protected product on the market, the company anticipates it will capture this exclusive market for several years. With approximately 45 billion birds being produced annually outside of the United States, and consumption growing by close to 30% per annum and expected to increase further, one can anticipate the revenue opportunity for this vaccine is in the tens of millions over the product life cycle."

Forward-Looking Statements:

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Virogen, Inc. and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

Contact Information

  • For More Information, contact:
    Paul Hogan
    CEO
    Virogen, Inc.
    (415) 367-4058