PRESS RELEASE
Published on October 13, 2005
Exhibit 99.1
ACCESS NEWS
Contact: Company Contact: Investor Relations
Stephen B. Thompson Donald C. Weinberger
Vice President & CFO Wolfe Axelrod Weinberger & Associates LLC
(214) 905-5100 (212) 370-4500
ACCESS PHARMACEUTICALS, INC. RESTRUCTURES
TO FOCUS ON ONCOLOGY THERAPEUTICS
ORAL CARE BUSINESS SOLD
DALLAS, TEXAS, October 12, 2005, ACCESS PHARMACEUTICALS, INC. (AMEX: AKC)
today announced that it has refocused the company on the its its oncology
therapeutics platform, and has completed the sale of its oral care business
to Uluru, Inc., a private Delaware company, for up to $20.6 million. Access
sold its interest in Aphthasol(R), all OraDisc(TM) products, and all
Residerm(R) products. In addition, Uluru has licensed Access' nanoparticle
hydrogel aggregate technology. Access received $8.7 million at the closing
of the agreement and may receive up to $3.7 million within twelve months
after closing, and will receive an additional $1 million within 24 months
after closing. Additional payments of up to $7 million will be made upon
the achievement of certain milestones.
At the closing of the sale, the Company retired its senior secured
convertible notes. The Company believes that the sale of the oral care
business provides liquidity to continue operations, and to manage some of
the convertible debt remaining on the Company's balance sheet. The
Company plans to continue its negotiations with the holders of its
convertible debt. In addition, the Company is planning to continue
development of its cytotoxic oncology product AP5346 with a phase II
trial scheduled to begin in the fourth quarter of 2005. Data from the
completed phase I trial will be presented at the NCI/AACR/EORTC
meeting to be held in November in Philadelphia.
The Company also announced that it will hold a conference call to provide
a business update on Friday, October 14th, 2005 at 10:00 AM Eastern
Time.
- More -
To participate please dial (888) 391-0235 five to ten minutes prior to the
initiation of the teleconference; international callers dial (212) 676-4904.
The teleconference will also be available on replay starting on October 14,
2005 at 12:00 PM Eastern Time until October 15, 2005 at 12:00 noon
Eastern Time. For the US replay, please dial (800) 633-8284 (Reservation
# 21265172), for international callers please dial (402) 977-9140
(Reservation 21265172).
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Access Pharmaceuticals, Inc. is an emerging pharmaceutical company
developing unique polymer linked cytotoxics for use in the treatment of
cancer. The lead product AP 5346 is in Phase II clinical testing. The
Company also has other advanced drug delivery technologies including
vitamin-mediated targeted delivery and oral drug delivery.
Uluru, Inc. is an emerging specialty pharmaceutical company dedicated
to becoming a leading topical drug delivery and oral care company by
utilizing its innovative transmucosal delivery system and hydrogel
nanoparticle aggregate technologies and acquiring value-added topical
products.
This press release contains certain statements that are forward-looking
within the meaning of Section 27a of the Securities Act of 1933, as
amended, and that involve risks and uncertainties, including but not
limited to statements made relating to negotiations to restructure our
outstanding Convertible Notes (which negotiations may not be successful),
our current steps being taken to satisfy our cash needs and our ability to
achieve the milestones relating to our oral care asserts sold to Uluru, Inc.
These statements are subject to numerous risks, including but not limited
to the uncertainties associated with our ability to raise funds to continue
our operations, our ability to sell assets, our ability to restructure our
Convertible Notes, research and development activities, clinical trials, our
ability to raise capital, the timing of and our ability to achieve regulatory
approvals, dependence on others to market our licensed products,
collaborations, future cash flow, the timing and receipt of licensing and
milestone revenues, projected future revenue growth and our ability to
generate near term revenues, our ability to develop products from our
platform technologies, our ability to achieve licensing milestones, our
ability to repay our outstanding debt obligations and other risks detailed
in the Company's Annual Report on Form 10-K for the year ended
December 31, 2004, Quarterly Report on Form 10-Q for the quarter
ended June 30, 2005 and other reports filed by us with the Securities and
Exchange Commission.
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