Stirling Products to launch generic pharmacy range in March

Wednesday, December 23, 2009 by Proactive Investors

Shares in Australian healthcare company Stirling Products (ASX:STI) have moved 7.7% higher on news the company is preparing to launch a broad range of OTC and generic prescription drugs under the Stirling Pharma brand to pharmacies throughout Australia.

During the afternoon trade, shares in the company increased 7.7% to 1.4c.

The Company proposes to launch Stirling Pharma on the Gold Coast during Australia’s largest Pharmacy industry event, the Australian Professional Pharmacy Conference, in March 2010.

Following establishment of “Stirling Pharma” in Australia, the Company will seek to expand “Stirling Pharma” selectively and progressively in other global regions.

In the same statement, the company announced it had agreed to a working relationship with Cipla Limited, a major international pharmaceutical drug manufacturer based in India.

The Company’s business initiatives with Cipla have commenced and will be the subject of formal Memorandums of Understanding that are expected to be entered into as the relationship progresses and as the Company continues to expand its reach and influence.

Cipla, which exports to over 183 countries, has been a forerunner of the provisioning of affordable drugs to India as well as to many developing countries that in most cases have significant public health burdens from diseases such as AIDS, TB, typhoid, malaria and dengue fever.

It has been responsible for the dramatic reduction in the cost of AIDS treatments reducing cost to patients from $12,000 plus per annum to a current $150 -250.

In its current trial initiatives for AIDS and TB, Stirling will preferentially use the Cipla drug products as Cipla is the world’s largest supplier of AIDS drugs as well as a substantial supplier of TB drugs.

Cipla also manufactures and distributes a full range of products including: antibiotics, anti-bacterials, anti-asthmatics, anthelmintics, anti-ulcerants, oncology, corticosteroids, nutritional supplements and cardiovascular drugs.

Stirling Products managing director Peter Boonen will also be the Company’s preferred supplier of R-salbutamol in all of its further trial work and ultimate commercial products for both animal and human applications.

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