SOURCE: Easton Pharmaceuticals Inc.

Easton Pharmaceuticals Inc.

April 22, 2015 07:00 ET

Easton Pharmaceuticals Announces Finalized Joint Partnership Agreement With BMV Medica for Exclusive Rights to Distribute World Patented Women's Health Diagnostic Test in Mexico From Israel-Based Common Sense Ltd.

The VS-Sense Diagnostic Product Line Currently Holds Extended Patent Protection and Is Expected to Generate Well Over 100% Profit Margins for Easton / BMV; The Vaginal Health Test Is Currently Sold throughout the United States, Canada and Soon Europe

TORONTO, ON--(Marketwired - Apr 22, 2015) - Easton Pharmaceuticals Inc. (OTC PINK: EAPH) Announces it has entered into a 50/50 revenue sharing partnership with BMV Medica SA de C.V. for an exclusive distribution agreement with Common Sense Ltd. of Israel to become the exclusive distributor in the country of Mexico for their world patented woman's diagnostic Vaginal Infection Test, currently being sold throughout the United States, Canada and soon Europe.

Both companies are pleased to announce they have obtained exclusive distribution rights for the country of Mexico from Israel-based Common Sense Ltd. and their world patented product line known as VS-SENSE-OTC and VS-SENSE PRO, for the detection of Bacterial Vaginosis (BV) and Trichomonas. BV is a common condition in which the natural balance of bacteria inside the vagina becomes disrupted. One in three women will get BV at some point in their lifetime, which demonstrates the huge market and revenue capabilities for the products. The products are currently protected by international patents with approximately 12 years remaining on the patent life and have CE Certification for selling and marketing in the EU obtained under the European Medical Device Directive 98/79/EC, Number IVD000256. The products are currently being sold within the United States and Canada. Easton's cost to secure the rights from BMV included a cash payment and the issuance of 50 Million restricted common shares to be released on condition that a minimum of $1,000,000 in sales be generated from the products.

Common Sense Ltd., through partnerships with industry leaders, will shortly begin selling the VS-SENSE-OTC in several European markets, including multi-national company Bayer Pharmaceuticals. The products are currently being marketed and sold in the United States through Prestige Brands in CVS, Walgreens and Rite-Aid Drug Stores under their own private label as well as under the leading Womens Health Care brands and throughout Canada in Shoppers Drug-Mart and Jean Coutu.

Easton and BMV have allocated funds towards regulatory filings in Mexico, which will be submitted by contracted, industry respected regulatory consultants. Additional funds have been allocated and set aside towards branding and packaging. The regulatory approval in Mexico is anticipated to be quickly passed by the country's health agency due to necessity and the fact the products are currently approved for sale in North America and Europe. Easton / BMV are currently in negotiations to acquire the distribution rights for the rest of Latin America, a market which could be three times the size of Mexico and in aggregate represents approximately 20% of the world market in the pharmaceutical sector. Mexico currently has a population of 120 million people with a large demographic bulge in the 15-45 yr. old female population and as such, Mexico has a larger proportion of premenopausal women than does the rest of North America. The products will serve a market where no such product currently exists and is patent protected. Easton / BMV will be white labeling its own brand as well as entering into license agreements with various distributors and large drug store chains similar to the US model. The pricing per unit is expected to be in the same range as the US and Canada, approximately $18/test kit which is considered affordable.

Easton and BMV anticipate launching the test kit first, then quickly adding two treatment options: one for when the test offers negative results -- possible yeast infection (candida species) and one for when the test yields a positive result -- Bacterial Infection (BV). This is the "triangle model" which will be used in other markets, and entails bringing to market a probiotic lactic acid gel, (a natural treatment) for when the diagnosis is a bacterial infection. Easton / BMV believe this relatively new approach to diagnose and treat both yeast and bacterial vaginal infections may reduce substantially the need for antibiotic use, and also cut down substantially the time from first symptoms to successful diagnosis and treatment by up to several weeks. From a cost and health perspective this may be a major step forward in women's health. The diagnostic kits will be available for personal use through pharmacies, and also in a slightly different format for the Doctor's offices.

We anticipate a minimum profit margin of 100% or slightly more once all expenses are factored in which is expected to be highly profitable due to the fact 1 in 3 women will at some point in their lives develop Bacterial Vaginosis (BV) and Trichomonas.

Carla Pepe, CEO and director of Easton Pharmaceuticals stated, "We at Easton Pharmaceuticals are extremely pleased to have acquired and to participate with BMV Medica for the exclusive distribution rights for the VS-Sense OTC diagnostic product and will work with BMV to develop the treatments that arise from the diagnosis, following US and European models. The reality is that most women sooner or later suspect and will acquire a yeast or bacterial infection and with many women this is a recurring event. This technology will allow them to determine the cause in a matter of seconds without the need to visit a doctor's office. The VS-Sense diagnostic products can easily and accurately diagnose the condition leading to a proper treatment." Mrs. Pepe, further stated, "Many other companies, most of which were much larger, were candidates to acquire the rights to these products, with Easton / BMV being the company(s) who were ultimately successful and granted exclusive distribution rights. This clearly demonstrates our distribution capabilities are well respected in the Mexican / Latin American markets and we believe this opportunity provides the company with much credibility which will lead to other lucrative opportunities in the diagnostic and / or the pharmaceutical industry currently being negotiated."

About Common Sense Inc.

Common Sense Inc. is an internationally recognized company holding international patents for their VS-SENSE-OTC (consumer test) and VS-SENSE PRO (professional test) diagnostic products, for the detection of bacterial Vaginosis and Trichomoniasis, conditions that effect many millions of women around the world. The products have FDA and Health Canada approvals, and CE Certification for selling and marketing in the EU obtained under the European Medical Device Directive 98/79/EC, Number IVD000256.

About Easton Pharmaceuticals

Easton Pharmaceuticals is a diversified specialty pharmaceutical company involved in various pharmaceutical sectors and other growing industries such as medical marijuana. The Company previously developed and owned an FDA approved wound healing drug and currently owns topically-delivered drugs to treat cancer and other conditions that are all in various stages of development and approval. Easton has entered into a 50 / 50 revenue sharing agreement towards being the exclusive distributor in Mexico for world patented women's diagnostic products. Easton has completed an acquisition that grants 40% ownership interest in Medicated Markets International LLC; a company holding Medical Marijuana growing rights in California on 20 acres (3 acre growing area). Easton has also made additional investments into AMFIL Technologies, their groZONE anti-microbial airflow system and hold an exclusive option to purchase up to 49% in a (MMPR) medical marijuana grow-op business post granting of license from Health Canada in Ontario, which has received a letter to build from Health Canada. The company's gel formulation is thought to be an innovative and unique transdermal delivery system that can in the future be adaptable in the delivery of Cannabidiol extracts.

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This news release may contain forward-looking statements or expressions within the meaning of the Private Securities Litigation Reform Act of 1995 (The "Act"). In particular, when certain words or phrases such as "hope," "positive," "anticipate," "pleased," "plan," "confident that," "believe," "expect," "possible" or "intent to" and similar conditional expressions are expressed, they are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Any investment made into Easton Pharmaceuticals would be classified as speculative and may contain risks. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the company's products and technologies, competitive factors, the ability to successfully complete additional or adequate financing, government approvals or changes to proposed laws and other risks and uncertainties further stated in the company's financial reports and filings.

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