Cellegy sells shares of Cellegy Australia to Epsilon for $1.25 million

By Lisa Kerner

Erie, Pa., April 11 - Cellegy Pharmaceuticals, Inc. said that Epsilon Pharmaceuticals has acquired the shares of Cellegy Australia Pty. Ltd. in exchange for an immediate cash infusion of approximately $1.25 million, according to a company news release

The company said within 90 days it will collect an additional amount based on total accounts receivable on Cellegy Australia books as of March 31.

"We decided to sell Cellegy Australia to Epsilon in order to continue to focus Cellegy's efforts on our U.S. business," chairman and interim chief executive officer Richard C. Williams said in the release.

"While Cellegy Australia has been a profitable and growing business, we need to focus on getting Cellegesic approved in the United States. This sale provided us with the cash necessary to complete preparations for the upcoming Food and Drug Administration Advisory Committee meeting, where we hope to earn a positive recommendation for approval of Cellegesic."

Cellegesic nitroglycerin ointment 0.4% for the relief of pain associated with chronic anal fissure will be undergoing review by an FDA Advisory Committee on April 25. The product has been on the market as Rectogesic in the United Kingdom since May 2005 and recently completed the Mutual Recognition Process in 19 additional European markets.

Epsilon said it will continue marketing Rectogesic nitroglycerin ointment 0.2% in Australia and several additional Far East markets.

Cellegy develops and commercializes prescription drugs for the treatment of women's health care conditions, including sexual dysfunction, HIV prevention; and, gastrointestinal disorders. The company is located in Huntingdon, Pa.

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