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Calypte Signs Memorandum of Understanding with the Safe Blood for Africa Foundation
ALAMEDA, Calif.--(BUSINESS WIRE)--Dec. 13, 2002--
FDA-Approved Urine HIV Antibody Test to be Initiated in African
Blood Bank Settings for Blood Donor Pre-screening Programs
Calypte Biomedical Corporation (OTCBB:CALY), the developer and marketer of the only two FDA-approved HIV-1 antibody tests that can be used on urine samples, announced today that it has executed a Memorandum of Understanding (MOU) with the Safe Blood for Africa Foundation, giving exclusive rights to market and distribute Calypte's urine-based HIV-1 antibody tests in sub-Saharan Africa as a blood donor pre-screening tool. Non-exclusive rights to distribute Calypte's Serum Western Blot tests are also included in the MOU. Provided certain milestones are achieved, it is anticipated that the MOU will become a formal distribution agreement in three months, at which time the agreement will automatically become a ten-year distribution contract. Calypte will donate the first 125,000 Urine EIA tests and train SBFA personnel during the initial three-month MOU period.
The Safe Blood for Africa Foundation is a not-for-profit corporation whose mission is to help prevent the spread of HIV/AIDS throughout 34 countries in sub-Saharan Africa. The organization is working with such groups as the World Bank, USAID, UNAIDS, and the World Health Organization (WHO). The Safe Blood for Africa Foundation estimates that of the 6 million blood transfusions performed annually in sub-Saharan Africa, approximately half of the transfused materials have not been tested for infectious diseases. As the Safe Blood for Africa Foundation's testing responsibility grows to cover all of sub-Saharan Africa, the number of blood transfusions performed is anticipated to grow to 12 million transfusions per year. The Safe Blood for Africa Foundation estimates that less than half of sub-Saharan African countries have adopted a national blood transfusion policy and less than one third of the countries have policies to limit HIV infection through blood transfusions. Since the HIV prevalence in many of these countries exceeds 20%, blood transfusions account for an ever-increasing cause of new infections.
Jeffrey M. Busch, chairman of the Safe Blood for Africa Foundation, stated, "By using this approach, we believe we can accomplish our objective of a safer blood supply in sub-Sahara Africa in a more efficient and cost effective manner. Every dollar saved in unnecessary or duplicative testing processes is a dollar that can be spent expanding our coverage and services. By pre-screening with urine, the Safe Blood for Africa Foundation can either decline the donation outright, or destroy the unit of blood before more money and resources are spent on additional testing."
The MOU with the Safe Blood for Africa Foundation was coordinated with Calypte by Global Business Partners. According to Rick Langley, president of Global Business Partners, "This is an exciting opportunity to work with a product of such universal demand. Calypte's HIV-1 tests can help save thousands of lives by identifying blood donors who have been exposed to HIV while saving valuable healthcare resources for African countries."
"We are excited that the Safe Blood for Africa Foundation is pioneering this approach with our product," stated Nancy Katz, president and chief executive officer of Calypte. "This ingenious approach to blood screening is a cost effective way to reduce the risk of HIV transmission through blood transfusions in regions of the world with high HIV prevalence. Our arrangements with Safe Blood for Africa Foundation hold promise to create a win-win situation for both Calypte and African Blood banks, and we will actively explore expanding similar programs into other high risk regions as we assess the impact of the African effort."
About Calypte
Calypte Biomedical Corporation, headquartered in Alameda, Calif., is a public healthcare company dedicated to the development and commercialization of urine-based diagnostic products and services for Human Immunodeficiency Virus Type 1 (HIV-1), sexually transmitted diseases and other infectious diseases. Calypte's tests include the screening EIA and supplemental Western Blot tests, the only two FDA-approved HIV-1 antibody tests that can be used on urine samples. The company believes that accurate, non-invasive urine-based testing methods for HIV and other infectious diseases may make important contributions to public health by helping to foster an environment in which testing may be done safely, economically, and painlessly. Calypte markets its products in countries worldwide through international distributors and strategic partners. Current product labeling including specific product performance claims can be found on our website at www.calypte.com.
Statements in this press release that are not historical facts are forward-looking statements, including statements regarding future revenues and sales projections, plans for future financing, the ability to meet operational milestones, marketing arrangements and plans, and shipments to and regulatory approvals in international markets. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, our ability to obtain additional financing that will allow us to continue our current and future operations and whether demand for our product and testing service in domestic and international markets will continue to expand. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact the Company's success are more fully disclosed in the Company's most recent public filings with the U.S. Securities and Exchange Commission ("SEC"), including its annual report on Form 10-K for the year ended Dec. 31, 2001 and its subsequent filings with the SEC.
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CONTACT: Calypte Biomedical Corporation Richard Van Maanen, 510/749-5153 dvanmaanen@calypte.com or Lippert/Heilshorn & Associates Investor Relations: Brendan Lahiff/Kirsten Chapman, 415/433-3777 brendan@lhai-sf.com or Safe Blood for Africa Foundation Carole Cones, 703/920-5265 |