Canadian firm Forbes Medi-Tech issued a release yesterday to saying that the Australian contract manufacturer Pan Pharmaceuticals, which this week had its manufacturing license suspended over illegal testing and dubious manufacturing, has no involvement in the company's cholesterol-lowering ingredient Reducol.
"While Pan Pharmaceuticals has been a customer of Forbes, the company would like to clarify that Pan Pharmaceuticals is in no way involved in the manufacturing of Forbes' clinically proven cholesterol-lowering ingredient, Reducol. Pan's difficulties are unique to Pan and will have nosignificant impact on our global commercialization efforts and we willmaintain our previously stated 2003 revenue guidance," said Charles Butt,president and CEO of Forbes Medi-Tech.
As a result of the suspension, a number of vitamin and nutritionalsupplements manufactured by Pan Pharmaceuticals have been recalled. Theseinclude a cholesterol-lowering dietary supplement that incorporatesReducol supplied by Forbes, manufactured by Pan for Mayne Group Limited.
Forbes also announced this week that it has sold its pharmaceutical finechemicals business which centered on process technologies for theproduction of the steroid intermediates androstenedione (AD) andandrostadienedione (ADD) to an un-named multinational pharmaceutical company. Forbes will receive gross proceeds of $1.9 million for the sale, to be completed by the end of the year.
The divestment is part of the company's restructuring plan announced in mid-2002, which aims to streamline focus on new drug development targeted towardcardiovascular disease and commitment to the company's revenue generatingnutraceutical business.
"Completion of this sale will result in an immediate infusion of cash intothe company and will free resources essential for tapping into ourextensive product pipelines which have shown promising potential forfurther development," said Charles Butt, president, CEO Forbes Medi-Tech.