NovaDel, Rechon enter license and distribution agreement for Zolpimist

Aug 23 2011

NovaDel Pharma Inc. (OTC BB: NVDL), a specialty pharmaceutical company that develops oral spray formulations of marketed pharmaceutical products, today announced its entry into an exclusive license and distribution agreement with Rechon Life Science AB to manufacture and commercialize Zolpimist® outside the United States and Canada. Zolpimist is our oral spray formulation of zolpidem tartrate approved by the FDA in December of 2008.

“This license and distribution agreement is offering a great opportunity for a successful introduction of Zolpimist outside the United States and Canada. We look forward to this extended partnership with NovaDel and we are impressed with NovaDel's efficient oral spray drug delivery technology as used in Zolpimist.”

Under the terms of the agreement, Rechon will assume responsibility for manufacturing and marketing Zolpimist outside the United States and Canada. In addition, Rechon will pay a royalty on each unit shipped from Rechon's manufacturing facility. Under the terms of the agreement, Rechon is required to complete and submit a regulatory filing for Zolpimist in the European Union. In addition, Rechon is required to launch Zolpimist in at least three countries outside the European Union within 12 months.

Steven B. Ratoff, Chairman and CEO, said, "This agreement expands the market opportunity for Zolpimist to the world outside the U.S. We believe that Rechon, with its relationships with pharmaceutical marketers around the globe, has the ability to build a solid position for Zolpimist in the market for prescription sleep aids."

Roland Holmqvist, CEO of Rechon Life Science AB, expressed that, "This license and distribution agreement is offering a great opportunity for a successful introduction of Zolpimist outside the United States and Canada. We look forward to this extended partnership with NovaDel and we are impressed with NovaDel's efficient oral spray drug delivery technology as used in Zolpimist." Rechon Life Science AB is a complete pharmaceutical company also providing manufacturing services for pharmaceutical and life sciences companies.