SOURCE: AXM Pharma, Inc.

June 02, 2005 10:00 ET

AXM Pharma Granted Exclusive Contract for Sunkist Products in Singapore, Malaysia and Thailand

LAS VEGAS, NV -- (MARKET WIRE) -- June 2, 2005 -- AXM Pharma, Inc. (AMEX: AXJ) announced today that it has exercised its right to exclusively brand Sunkist products in Singapore, Malaysia and Thailand. AXM Pharma already has exclusive rights to Sunkist in China, Hong Kong and Taiwan.

AXM Pharma's exclusive Trademark Licensing Agreement with Sunkist grants AXM Pharma exclusive rights to use the Sunkist brand name and trademark for its vitamin and vitamin supplement products in China, Hong Kong, Taiwan, Singapore, Malaysia and Thailand. The agreement illustrates AXM Pharma's strategy to license noteworthy pharmaceuticals and healthcare products for the fast-growing Asian over-the-counter ("OTC") market. It also grants AXM Pharma the right-of-first-refusal to use the brand name for these products in territories in Asia where there is no licensee at this time.

"The Sunkist brand has been associated with a variety of juice-based beverages in China, and is now the 10th largest brand in the country," said Peter Cunningham, President International Division of AXM Pharma, Inc. "We believe that widespread recognition of the Sunkist name will give branded vitamins immediate market acceptance all over Asia. We are pleased that Sunkist and our distributors feel there is great potential for our products and welcome our expansion into the new territories."

Sunkist, http://www.sunkist.com, has been among the world's most recognized brands for more than 100 years. Worldwide, consumers consistently rank Sunkist in the top 90th percentile for attributes of quality, esteem, stature, vitality, relevance and differentiation. The Sunkist brand can be found in a variety of product categories, including popular soft drinks, fruit juices and fruit snacks. Sold in more than 50 countries, Sunkist-branded products generate more than $2 billion in annual sales.

AXM Pharma's exclusive relationship with Sunkist extends beyond traditional vitamin and supplement dosage forms. In 2004, AXM Pharma acquired the exclusive rights to several oral drug delivery technologies including the transfer of intellectual property and technical support for formulation and manufacturing processes, as well as distribution rights throughout Asia. These technologies include chewable tablets, capsules, lozenges and certain formulations of Soluleaves™, an oral drug delivery technology using dissolve-in-the-mouth films.

Oral delivery of drugs using chewables and fast dissolve-in-the-mouth films is ideal for line extension of existing drugs and for drugs that no longer have patent protection. This technology provides a competitive advantage to companies with competing drugs that have very little difference in therapeutic effect. By offering a unique formulation that tastes good and is easy to take anytime, anywhere and without water or fluids, drug companies have a distinct advantage over their competition. The market for advanced drug delivery systems is expected to grow from $16.28 billion in 2000 to $27.35 billion in 2005 in the United States according to a Business Communications Company report; and strong growth is expected in Asia.

AXM Pharma's product line is as deep as it is diverse. AXM Pharma now has 10 vitamin and nutritional supplements marketed in China under the Sunkist trademark and expects to expand the product line significantly across Asia. The products will be distributed by China Zuellig Xin Xing. China Zuellig is a subsidiary of the Interpharma Group, which is the largest pharmaceutical distributor in Asia, with annual revenues exceeding US$ 3.0 billion, 125 multinational clients, more than 100,000 direct accounts and 4,000 employees.

AXM Pharma, Inc., http://www.axmpharma.com, through its wholly owned subsidiary, Werke Pharmaceuticals, Inc., is the 100% owner of AXM Pharma Shenyang, Inc. ("AXM Shenyang"), a Wholly Foreign Owned Enterprise ("WFOE") under the laws of the People's Republic of China. AXM Shenyang is located in the City of Shenyang, in the Province of Liaoning, China. AXM Shenyang and its predecessor company, Shenyang Tianwei Pharmaceutical Factory, Ltd. ("STPF"), has an operating history of approximately 10 years. AXM Shenyang historically has been a manufacturer of proprietary and generic pharmaceutical products, which include injectables, capsules, tablets, liquids and medicated skin products for export and domestic Chinese sales. For additional information on AXM Pharma, Inc, please visit http://www.iccinfo.com or call Investor Communications Company, LLC at 866 562 0134.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements under securities law. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially including, but not limited to, the performance of joint venture partners, as well as other economic, competitive and technological factors involving the Company's operations, markets, services, products and prices. With respect to AXM, except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, AXM's extremely limited operating history, uncertainties related to the Company's access to additional capital, competition and dependence on key management.

Contact Information

  • Contact Information:
    Tom Bostic
    Investor Communications Company, LLC
    (866) 562-0134