PharmEng International Inc.
TSX VENTURE : PII

PharmEng International Inc.

March 26, 2007 12:00 ET

PharmEng Announces Exclusive Agreement With Chinese Manufacturer for Distribution of Acetaminophen to North America Resulting in Significant Raw Material Cost Savings

TORONTO, ONTARIO--(CCNMatthews - March 26, 2007) - PharmEng International Inc. ("PharmEng" or the "Company") (TSX VENTURE:PII), today announced an exclusive distribution agreement with Bengbu Bayi Pharmaceuticals Ltd. of China for the distribution of acetaminophen for North America, Central America and South America. The contract period is for eight (8) years. Annual North American consumption of acetaminophen, used for pain and fever reduction in private label products, is approximately 50,000 metric tons per year or US$200 M / year.

Keata Pharma Inc, the Company's contract manufacturing division, purchases acetaminophen from Bayi for manufacturing of private label product. There are significant material cost savings by sourcing acetaminophen from Bayi in China for both Keata and other drug manufacturers that use the ingredient for cough and cold remedies. PharmEng has already exported over 70 metric tons of acetaminophen to North America for use in the Keata facility with an annual raw material saving of 20% when purchasing from Bayi as compared to the prior supplier. Annual consumption of acetaminophen in Keata is approximately 300 metric tons per year.

There are other active pharmaceutical ingredients like acetaminophen from China that the Company is evaluating for import opportunities that provide similar cost advantages. The Company completed a Drug Master File application with the Food & Drug Administration for Bayi last year, providing consulting revenue for the Company and ensuring quality assurance prior to export.

"Our partnership with Bayi validates our growth strategy of assisting Chinese companies to explore North American markets generating revenue for our consulting operations and providing cost savings for our manufacturing division," explained Alan Kwong, CEO and Chairman of PharmEng International Inc.

About PharmEng International Inc.

PharmEng International Inc., headquartered in Toronto, Canada, is a full-service consulting and contract manufacturing company that serves the pharmaceutical and biotechnology industries in North America and internationally. Consulting services include project management, engineering, GMP, validation, calibration, regulatory compliance and certified training. Contract manufacturing includes pharmaceutical support, formulation development, laboratory testing, and finished solid dosage and liquid products. PharmEng's shares trade on the TSX Venture Exchange under the symbol PII. To find out more about PharmEng International Inc. (TSX VENTURE:PII), visit our website at www.pharmeng.com.

FORWARD LOOKING STATEMENTS

Certain statements in this press release may include "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of PharmEng to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements use such words as "may", "will", "expect", "anticipate", "project", "believe", "plan", and other similar terminology. The risks and uncertainties are detailed from time to time in reports filed by PharmEng with the securities regulatory authorities in all of the provinces and territories of Canada. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of PharmEng to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction actual results.

Contact Information

  • PharmEng International Inc.
    Bert Loveless
    CFO
    (905) 415 3922 x 107
    Website: www.pharmeng.com