WORCESTER, Mass., Jan. 22, 2009 (GLOBE NEWSWIRE) -- Generex Biotechnology Corporation (Nasdaq:GNBT) (www.generex.com), the leader in drug delivery for metabolic diseases through the inner lining of the mouth, today announced that it has entered into a distribution agreement with Butler Animal Health Supply LLC (www.accessbutler.com), the nation's leading distributor of companion animal health supplies to veterinarians, pursuant to which Butler will distribute Glucose RapidSpray (www.glucoserapidspray.com), the Company's proprietary glucose spray product, in the animal health industry in the United States.
There are more than 72 million pet dogs and nearly 82 million pet cats in the United States. Up to one in every 500 such pets eventually develops diabetes mellitus such that additional dietary glucose is or may be desirable. Glucose RapidSpray is designed to provide additional dietary glucose.
In addition, Glucose RapidSpray may be used to combat lethargy or first signs of low blood sugar often experienced by pet dogs or cats. Glucose RapidSpray can provide a user-friendly option for pet owners to react effectively to their pets' needs. The liquid spray is absorbed by the inner lining of the mouth without any chewing or swallowing. Glucose (sugar) is the fuel that dogs and cats burn for energy and that is necessary for optimum functioning of brain and muscle tissues; without sufficient amounts of glucose, animals are weak and listless.
Under the terms of the five-year deal, Butler has agreed to a minimum purchase of 20,000 units during the first year, such minimum purchase increasing each year culminating in 100,000 units during the fifth year.
"Although originally designed for people seeking additional glucose in their diets, we are pleased that the product has additional applications in the animal health industry," said Rose Perri, the Company's Chief Operating Officer. "We extend credit to our Business Development and Marketing team for their ingenuity in seeking other viable markets for our product pipeline."
The global animal health market was worth US$17.4 billion in 2005 with a forecast annual compound growth rate of 4.5% to US$21.7 billion in 2010. The United States accounts for 36% of the global market. The Pet Product Manufacturers Association estimates that United States consumers spent in excess of US$40 billion on their pets in 2007 and Marketreserach.com has indicated that, during the period 1995 - 2005, pet spending tripled for households with incomes in excess of US$70,000 and spending on convenience products grew 20% from 2005 to 2006 alone.
About Generex Biotechnology Corporation
Generex is engaged in the research, development and commercialization of drug delivery systems and technologies. Generex has developed a proprietary platform technology for the delivery of drugs into the human body through the oral cavity (with no deposit in the lungs). The Company's proprietary liquid formulations allow drugs typically administered by injection to be absorbed into the body by the lining of the inner mouth using the Company's proprietary RapidMist(tm) device. The Company's flagship product, oral insulin (Generex Oral-lyn(tm)), which is available for sale in India and Ecuador for the treatment of subjects with Type-1 and Type-2 diabetes, is in Phase III clinical trials at several sites around the world. For more information, visit the Generex website at http://www.generex.com.
About Butler Animal Health Supply
Butler Animal Health Supply is the largest distributor of companion animal health supplies to veterinarians in the United States. The company, headquartered in Dublin, Ohio, operates across the United States with 15 distribution centers and 8 tele-centers. Butler Animal Health Supply serves over 29,000 veterinary clinics in all 50 states and distributes over 15,000 products for more than 400 vendors.
Safe Harbor Statement
This release and oral statements made from time to time by Generex representatives in respect of the same subject matter may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by introductory words such as "expects," "plans," "intends," "believes," "will," "estimates," "forecasts," "projects," or words of similar meaning, and by the fact that they do not relate strictly to historical or current facts. Forward-looking statements frequently are used in discussing potential product applications, potential collaborations, product development activities, clinical studies, regulatory submissions and approvals, and similar operating matters. Many factors may cause actual results to differ from forward-looking statements, including inaccurate assumptions and a broad variety of risks and uncertainties, some of which are known and others of which are not. Known risks and uncertainties include those identified from time to time in the reports filed by Generex with the Securities and Exchange Commission, which should be considered together with any forward-looking statement. No forward-looking statement is a guarantee of future results or events, and one should avoid placing undue reliance on such statements. Generex undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Generex cannot be sure when or if it will be permitted by regulatory agencies to undertake additional clinical trials or to commence any particular phase of clinical trials. Because of this, statements regarding the expected timing of clinical trials cannot be regarded as actual predictions of when Generex will obtain regulatory approval for any "phase" of clinical trials. Generex claims the protection of the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act.