SOURCE: AXcess News

AXcess News

November 10, 2010 12:29 ET

AXcess News: New Drug Delivery System May Be Key to Curbing Side Effects

HOUSTON, TX--(Marketwire - November 10, 2010) - Spencer Pharmaceutical (PINKSHEETS: SPPH) holds the patents on a new drug delivery system that controls the release of drugs to the bloodstream, which in turn can curb side effects, such as nausea and vomiting. Now the company is facing a barrage of interests in its process, as well as a buyout offer.

Normally, bringing new drug technologies to market is a slow and expensive process, but Spencer Pharmaceutical isn't dealing with as resistant a process, considering its technology is based on patented natural polymers used as a vehicle to deliver active compounds at the absorption sites without compromising their stability and bio-availability.

Working through the laboratory at the University of Montreal, Spencer Pharmaceutical founder Dr. Max Arella Ph D is working on slowing the delivery of Metformin, a drug long approved for the control of Type II Diabetes as well as Ibuprofen and what has the pharmaceutical world on its heals is SPPH's ability to reduce common side effects.

Within the highly competitive world of medicine drug makers face constant hurdles in selling their products to the public, as well as physicians, due to adverse side effects associated with the doses needed. To Dr. Arella -- that's money in the bank.

The Company has been reluctant to reveal which drug makers have come to the table, citing non-disclosure terms to early investigations as well as a buyout offer from a private fund. Investor pressure forced Spencer Pharmaceutical to clarify its position Tuesday. "It is the only way we will build a sustainable business," said Dr. Arella.

Spencer Pharmaceutical defended its timeline for regulatory approval, saying, "Metformin is already approved as well as most of the substance included in our formulation of the MET4 product." The Company said animal testing could be completed in as little as one month. "We believe that the positive results of these tests should be sufficient to provide Health Canada the necessary data to approve MET4," the statement read.

As to the Fund buyout offer, Spencer Pharmaceutical stated that, "Although the offer is considerable, the company has opted to keep the information confidential." SPPH noted that it would retain an investment banking firm to advise it in that transaction, but stopped short of saying a sale was possible.

In the world of pharmaceuticals, Spencer Pharmaceuticals is sitting where some high-tech companies have been before their products came to market. Think, Steve Jobs in 2004 when the iPod was first introduced to the marketplace. But are drug delivery technologies as hot? Ever seen a drug commercial on TV lauding the effects only to give disclosure at the end of it about the possible side effects? Imagine a drug company using SPPH's delivery technology being able to cut those side effects or eliminate them? Just call him Dr. Max "Jobs" Arella of the pharma world.

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