Business Wire - August 9, 2000
Calypte and its distribution partners American Edge and African Medical Solutions (AMS) plan to duplicate their novel distribution approach already being implemented in South Africa, to extend HIV testing and education to many more countries in sub-Saharan Africa. South African-based AMS uses shipping containers - the large metal boxes commonly used to transport goods on ships and trains - and has them custom-engineered into clinics. The "container clinics" are then transported by train or truck to outlying townships and remote areas in South Africa to administer Calypte's HIV urine test and provide people with education about the disease. AMS is also employing motor vehicles that have been modified into state-of-the-art "mobile clinics" to access some areas.
A study recently published in the British journal, The Lancet, demonstrated that HIV testing and counseling has a profound impact on behavior and could dramatically impact the rate of infection in the developing world. According to the research, which was conducted in Kenya, Tanzania and Trinidad, a program of testing and counseling reduced unsafe sexual behavior and translated into 20 to 35 percent reductions in new infections, depending on the population's risk. The study, funded by the United Nations and U.S. Government, found that in terms of cost effectiveness, the HIV testing and education program could be compared to other common public health measures such as measles vaccinations and polio immunizations.
Significant advantages of Calypte's urine HIV-1 antibody tests are that unlike blood samples, urine samples can be obtained by non-medical professionals, have a longer shelf life, are not considered hazardous and require no refrigeration. An additional advantage of urine testing over blood is that urine does not appear to harbor the infectious virus itself and, according to the National Institutes of Health Fact Sheet on HIV Infection and AIDS, there is no evidence that HIV is spread through urine.
"The positive response we received to our mobile HIV-1 antibody urine testing program in Durban was even greater than we had anticipated," said Nancy E. Katz, President, CEO and CFO of Calypte. "The feedback from the World AIDS Conference was gratifying and confirmed that our strategy was on target. Through our expanded agreement with American Edge and African Medical Solutions, we'll be able to greatly extend our efforts to help combat sub-Saharan Africa's HIV problem."
American Edge Medical Company, in partnership with African Medical Solutions, a company formed specifically to market Calypte's products in Africa, will expand its exclusive rights as distributor of Calypte's urine HIV-1 antibody testing products from South Africa to 41 countries in sub-Saharan Africa. AMS expects to deploy the first container clinic to South Africa before year-end and expand throughout the region in 2001.
Calypte Biomedical Corporation (NASDAQ: CALY) is a health care 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 chronic illnesses. Carter-Wallace (NYSE: CAR) has the exclusive U.S. sales and marketing rights for Calypte's HIV products in the hospital, public health and reference lab markets. Calypte's tests include the screening EIA and supplemental Western blot tests, the only two FDA-licensed 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 chronic diseases may make important contributions to public health by helping to foster an environment in which testing may be done safely, economically, and painlessly.
Statements in this press release that are not historical facts are forward-looking statements, including statements regarding insurance company adoption of the HIV-1 urine testing products and the serum Western Blot test and statements regarding public acceptance and adoption of the HIV-1 urine testing products. 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 the Company's ability, directly or through third parties, to successfully manufacture and market the HIV-1 urine testing products and the serum Western Blot test and the ability of the Company to continue to finance its operations and to enter into distribution and marketing arrangements. 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 the occurrence of unanticipated events. Factors that may impact the Company's success are more fully disclosed in the Company's most recent periodic reports on Forms 10-Q and 10-K.
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CONTACT: Calypte Biomedical Nancy Katz, 510/749-5100 or Ketchum James Larkin, 415/984-2285
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