Profiteur im fall Vioxx - 500 Beiträge pro Seite

[BrauchGeld]

Hallo Biotech Freunde

Nachdem Vioxx von Merck aus dem Markt genommen wurde und Pfizer´s produkt Bextra anscheinend ebenso dieselben nebenwirkungen hat ,haben sich die Chancen für Dimethaid´s produkt "Pennsaid" um ein vielfaches erhöht.
Pennsaid ein mittel gegen Arthritis das schon in einigen Länder zugelassen ist, weist keinerlei nebenwirkungen.
In USA steht Pennsaid noch unter beobachtung der FDA.
Sobald die zulassung erfolgt wovon ich ausgehe wird die aktie kaum zu bremsen sein.

Dimethaid surges on hopes for arthritic treatment
Fri Oct 1, 2004 02:24 PM ET
TORONTO, Oct 1 (Reuters) - Dimethaid Research Inc.`s (DMX.TO: Quote, Profile, Research) stock jumped 70 percent on Friday as investors cheered prospects for the biotech company`s anti-arthritic lotion a day after Merck & Co Inc.(MRK.N: Quote, Profile, Research) withdrew its arthritis drug Vioxx off the market.
Shares of the Markham, Ontario-based firm surged 32 Canadian cents, or 70 percent, to 78 Canadian cents on the Toronto Stock Exchange on volume of about 10 million, more than 20 times its normal trading volume.

"They`re coming back because Merck`s down and they took Vioxx off the market so it opens the door for one of Dimethaid`s products," said Blair Wilson, associate director, portfolio advisory group with ScotiaMcLeod Inc.

Dimethaid`s Pennsaid, is an active drug delivered through the skin and is sold in Canada, the United Kingdom, Italy and several countries in the Caribbean.

U.S.-based drugmaker Merck pulled Vioxx, its arthritis drug which is being used by 84 million people around the world, after a study showed it doubled the risk of heart attack and stroke.

U.S. medical journal publishes Pennsaid(R) efficacy and safety study
Wednesday October 13, 7:00 pm ET


TORONTO, Oct. 13 /CNW/ - Pharmaceutical developer Dimethaid Research Inc. (TSX: DMX - News) announced that Archives of Internal Medicine has published a U.S. study providing additional support for the efficacy and safety of Pennsaid(R) anti-arthritic lotion. Pennsaid is currently co-promoted in Canada through a partnership between Dimethaid and Solvay Pharma Inc.
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Written by lead investigator Dr. Sanford H. Roth, medical director, Arizona Research & Education, and Dr. J. Zev Shainhouse, Dimethaid`s medical director, the Archives article is the third peer-reviewed Pennsaid study to be published since August.

The study, which enrolled 326 patients with knee osteoarthritis, found that Pennsaid improved pain scores by 45.7 percent, physical function by 36.7 percent, and stiffness by 35.1 percent - a statistically significant difference over results from a control group that received the chemical carrier alone, minus the active drug. Two hundred and twenty-eight patients completed the study, and researchers measured the results using the same FDA-mandated standards applied to oral nonsteroidal anti-inflammatory drugs (NSAIDs), including COX-2 selective inhibitors.

Commenting on the significance of the research, Dr. Roth said, "Systemic NSAID toxicity has been identified as a major problem, especially among the elderly who make up the core OA treatment population. A proven alternative to systemic NSAIDs is urgently required."

Pennsaid relies on a proprietary chemical carrier to deliver a painkiller (diclofenac) through the skin to the disease site. Unlike pills, Dimethaid`s technology exposes the bloodstream to minimal amounts of active drug, an approach the company credits for the reduced incidence of serious side effects.

During the 12-week study, patients treated with Pennsaid or control solution showed no significant difference in the incidence of blood pressure, respiration, GI or renal adverse events.

Pennsaid treatment was associated with a higher incidence of localized, minor skin reactions. The authors noted that an ingredient in Dimethaid`s chemical carrier has been known to cause dryness and suggested that common skin lubricants should prevent most reactions at the application site.

"Treating osteoarthritis with oral NSAIDs often involves a trade-off between risk and benefit, a point that has certainly come to light with the publicity surrounding COX-2 NSAIDs and cardiovascular morbidity," said Roth. "With Pennsaid, we did not see the common NSAID-related adverse events, which still require a major warning for ulcer bleeds and deaths, cardiovascular clotting events, and kidney failure. This did not occur despite careful monitoring of topical Pennsaid patients."

Initial results from the study were presented at the 2002 European Congress of Rheumatology in Stockholm, Sweden and subsequently published as an abstract in Annals of the Rheumatic Diseases. The complete article is available online at http://archinte.ama-assn.org. The results also form part of the New Drug Application (NDA) originally submitted by Dimethaid to the U.S. Food and Drug Administration.

Gruss
B.M.

[BrauchGeld]

Topical anti-arthritic safer than pills
Thursday September 30, 2:55 pm ET


Rheumatology Journal Publishes Pennsaid(R) Oral Equivalence Trial
TORONTO, Sept. 30 /CNW/ - The Journal of Rheumatology has published a clinical study sponsored by Dimethaid Research Inc. (TSX: DMX - News), demonstrating that Pennsaid(R), the company`s anti-arthritic lotion, has an overall better safety profile than pills containing the same active ingredient. The 12-week trial also shows that Pennsaid works as well as the maximum daily dose of comparable oral medication at relieving knee osteoarthritis symptoms.
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In an accompanying editorial, J. Rheum. editor Dr. R. Andrew Moore describes the pyramid of evidence supporting topical NSAID efficacy and his view that "the pinnacle is this new trial, demonstrating equivalence of topical and oral diclofenac in a large, valid, high quality trial."

"Without doubt, Pennsaid is as effective as the oral anti-arthritics," said Patrick Gushue, Dimethaid`s director, marketing and sales. "Couple that with the recent, worldwide withdrawal of Vioxx and we`re obviously sitting on a winner. Over the next two weeks, patients will be walking into doctors` offices asking what they should do. As Dr. Tugwell`s study shows, Pennsaid offers a realistic, and safer, alternative."

The study, which included 622 patients at 41 Canadian sites, found that oral diclofenac and Dimethaid`s topical formulation of the same active drug were equally effective at relieving pain and improving physical function when evaluated by the Western Ontario McMaster Universities Osteoarthritis Index (WOMAC). The two treatments also produced a statistically equivalent increase in patient global assessment (PGA), a standard measure of all-round well- being.

"These results strongly support our strategy of creating commercial success based on a topical drug application," said Dimethaid`s president and chief executive officer, Dr. Henrich Guntermann. "They send a clear signal to doctors, especially given the severe side effects other NSAIDs can cause."

Pennsaid, which is spread on the skin, uses a chemical carrier to deliver drugs directly to the disease site. Unlike pills, the topical treatment exposes the bloodstream to negligible amounts of active drug. Dimethaid credits its patented technology for the low incidence of side effects reported in this latest peer-reviewed publication.

The article points out that patients treated with Pennsaid experienced noticeably fewer gastrointestinal adverse events - dyspepsia, diarrhea, nausea, flatulence and abdominal pain - and in particular, a lower incidence of GI events classified as severe. These patients also had a much smaller change in liver enzyme, hemoglobin, creatinine, and creatinine clearance levels.

Pennsaid-treated patients did have more skin-related adverse events, mostly mild cases of dry skin, although some experienced rash, itching or minor blisters at the application site. During followup, these reactions disappeared quickly when patients stopped treatment. To make sure all skin reactions were detected, the study protocol prohibited using emollients.

The Journal of Rheumatology paper was authored by lead investigator Dr. Peter S. Tugwell, director, Centre for Global Health, University of Ottawa, along with Dr. George A. Wells, chair and professor, Department of Epidemiology and Community Medicine, University of Ottawa, and Dr. J. Zev Shainhouse, Dimethaid`s medical director. Initial results were presented at the 4th European Congress of Rheumatology in Lisbon, Portugal and published as an abstract in the June 2003 edition of Annals of the Rheumatic Diseases. The full paper will be available online at www.jrheum.com.

Results from an earlier placebo-controlled Pennsaid study, recently published in the Canadian Medical Association Journal by rheumatologist Dr. Arthur Bookman, chair of The Arthritis Society`s medical advisory committee, can be found at http://www.cmaj.ca/cgi/content/full/171/4/333.

About Dimethaid

Dimethaid Research Inc. is a publicly traded, Canadian, pharmaceutical company headquartered in Markham, Ontario, with manufacturing facilities in Varennes, Québec and Wanzleben, Germany. The company develops and commercializes targeted therapeutic drugs designed to produce minimal side effects. Dimethaid`s two technology platforms focus on transcellular drug delivery and immune system regulation. Products are aimed at expanding treatment options in rheumatology, dermatology, oncology, immunology, and the therapeutic management of chronic viral infections. For more information, please visit www.dimethaid.com.

Gruss
B.M.

[BrauchGeld]

Hi

Dimethaid heals rift with Solvay over arthritis lotion marketing
10/23/04

TORONTO, Oct 23, 2004 (The Canadian Press via COMTEX) --
Dimethaid Research Inc. said Friday it has smoothed over relations with Solvay Pharma Inc., a Belgian drug company which said last month it would scrap an agreement to co-market Dimethaid`s arthritis lotion.

Dimethaid said Solvay has tentatively agr
eed to withdraw its notice of termination, which was to have been effective Dec. 10, and will take over the marketing of Pennsaid in Canada.

As a result, Dimethaid is eliminating its 38-person Canadian salesforce.

Under the shared marketing arrangement set up in February, Solvay assigned three dozen salespeople to the Pennsaid product and was to match Dimethaid`s advertising and marketing spending.

The collapse of the Solvay agreement - over alleged contractual breaches by Dimethaid - was among the factors in a shareholder revolt that overthrew chief executive Rebecca Keeler last month.

Dimethaid`s new management said Friday that under the revised agreement Solvay "will assume primary responsibility for Pennsaid sales and promotion in Canada." Dimethaid will continue Pennsaid`s foreign marketing, distribution, licensing, and business development.

"We are confident this renewed relationship will help position Pennsaid strongly in the Canadian marketplace," stated new chairman Daniel Chicoine, a Magna group executive who marshalled the campaign against Keeler.

"Solvay has the expertise and breadth of team to execute a strong marketing program to ensure that health professionals know about Pennsaid."

As for the salesforce purge, Chicoine said, "We regret having to take this step, but the duplication of efforts by the two salesforces was not in the best long-term interest of Dimethaid."

Pennsaid uses proprietary techniques to deliver painkiller through the skin, which is said to avoid digestive and other complications of pills.

Dimethaid, which focuses on transcellular drug delivery and immune system regulation, has other products under development aimed at skin ailments, cancer, immune disorders and viral infections.

Dimethaid made the Solvay announcement after financial markets had closed Friday with its stock at 69 cents, up from 39 cents the day before shareholders voted for the management change on Sept. 21.

Gruss
B.M.

[BrauchGeld]

Hi

Endlich mal wieder gute Nachrichten.

Dimethaid intends to fill Vioxx void
Pharmaceutical firm says the problems surrounding rivals` pain medications provide it a perfect opportunity, LEONARD ZEHR writes

By LEONARD ZEHR
BIOTECHNOLOGY REPORTER

UPDATED AT 6:22 AM EST Wednesday, Jan 12, 2005

After nearly two years of frustration, Dimethaid Research Inc. has a rare opportunity to fill the void left by the recall of arthritis blockbuster Vioxx and safety concerns swirling around Celebrex.

Even though it has been trying to crack the arthritis market in Canada with its Pennsaid lotion that is rubbed into painful arthritic joints, money troubles and management turmoil have overshadowed the drug`s reputation as a safe and effective alternative to popular pain pills like Advil, Motrin and Aleve.

"The problems with Vioxx and Celebrex are the perfect storm for us," said Dan Chicoine, who assumed the post of Dimethaid chairman in September after leading a proxy battle that turfed the incumbent board and long-time president and chief executive officer Rebecca Keeler.

"If we can`t capitalize on this, we never will."

The early signs appear promising. The Markham, Ont.-based company, which plans to release second-quarter financial results this week, is expected to disclose that Pennsaid sales rose 11 per cent in October, the first month of the Vioxx recall, compared with September, and then rose 26 per cent on a month-over-month basis in November.

Those results represents a dramatic turnaround in the fortunes of the company, which was teetering on the brink six months ago. It was almost out of money and losing credibility with investors because of broken promises.

Moreover, marketing partner Solvay Pharma Inc. was threatening to back out of its relationship to distribute Dimethaid`s flagship Pennsaid lotion, effectively sounding its death knell.

In a sweeping turnaround, Mr. Chicoine`s tapped Dimethaid`s major creditor for bridge financing to stay afloat and then slashed overhead by 50 per cent to an annual rate of $10-million. Among other things, he let go 38 sales and marketing staff hired by Ms. Keeler.

He also wants to sell the company`s manufacturing plant in Quebec, or attract new contract business to the facility, which is operating at less than 10 per cent of capacity. The plant can turn out 240 bottles of Pennsaid a minute with a value of $300-million a year, based on a wholesale price of $38 for a 60-millilitre bottle. Pennsaid`s sales for the first quarter ended Aug. 31, 2004, were $1.5-million (U.S.).

"There was even an expansion planned to boost capacity to $1-billion [Canadian] a year because the company thought it was closing in on U.S. Food and Drug Administration approval for Pennsaid," Mr. Chicoine added.

The company also has a for-sale sign on its head office building, where each of the 35 remaining employees has the equivalent of 1,000 square feet of space.

Belt tightening enticed investors to ante up $11.2-million, of which Dimethaid insiders put up $500,000 of their own money, for a new issue of convertible debentures in November. Among other things, the money will allow the company to complete two important late-stage clinical studies of Pennsaid`s long-term safety for the FDA this year.

"My goals this year are to find a sales and marketing partner to distribute Pennsaid in the United States and in Europe," Mr. Chicoine said.

Pennsaid already has distributors in Portugal, Greece and Italy. It has been approved in Britain and other European countries, where topical medications enjoy greater market acceptance than in North America. In certain Caribbean nations, it is sold over the counter.

A chartered accountant by training, Mr. Chicoine has held a series of executive jobs with the Magna auto parts empire since 1982, including vice-president of finance and corporate development for Cosma Group, and president and CEO of Atoma International Inc.

He is resigning from Magna, and will spend four days a week as chairman of Dimethaid, in charge of finance, sales and marketing, and investor relations. "The skills I bring are controlling costs, developing a conservative economic model and managing forecasts."

With Dimethaid`s liquidity restored, Solvay has returned to the fold, agreeing to sell Pennsaid for 10 years with a sales and marketing team of 38 people. The two companies will share promotion costs, estimated at several million dollars this year, in a highly focused campaign.

Targeting physicians and specialists who write the greatest number of pain medication prescriptions in Canada, Solvay aims to promote Pennsaid as a safer alternative than pills to treat superficial joint pain. It will also try to convince the medical community to shed a long-held view that topical medicines don`t work.

"In North America, we have a love affair popping pills because it`s more convenient," Mr. Chicoine said. "Getting doctors to use a topical will be our No. 1 challenge."

Arthritis is a $500-million-a-year market in Canada, and Pennsaid, which was approved by Health Canada in 2003, is now capturing about 2 per cent of the market, said Laurence Downey, president and CEO of Solvay. "We have the potential to at least double that in 2005."

To do it, Solvay`s sales staff will be armed with articles from three peer-review journals published several months ago. One late-stage clinical trial, with 622 patients, found Pennsaid works as well as pills to relieve pain and improve physical functioning, with fewer gastrointestinal side effects.

Mr. Chicoine says the company needs $18-million in annualized sales to reach break-even, excluding the $6-million cost of clinical testing for an FDA filing.

Because most patients pay for Pennsaid out of their own pockets, Solvay is also applying to Ontario, Quebec and Alberta to have the medication listed on their formularies of approved drugs that qualify for health plan coverage. Pennsaid retails nationally for about $55 a bottle.

Mr. Downey, who keeps a bottle of Pennsaid by his bed at home, maintains that provincial formularies may be amenable to covering a portion of patients` costs because Celebrex has now been linked to heightened risks of heart attack and stroke, the same wave that sank Vioxx.

Using Pennsaid can be a hassle, though. Patients have to rub 10 drops on the front, back and both sides of the knee, up to four times a day. Possible dry skin irritation can be treated with moisturizers.

"Only two things can screw this up," Mr. Chicoine says. "Either doctors won`t prescribe it because they can`t get past the topical issue or the usage is too inconvenient. But safety and efficacy won`t screw this up."

The company is working on a roll-on applicator and other ways to make Pennsaid easier to use. It also has an improved version of the drug in early development to ward off any generic competition.

About Pennsaid

Pain cream launched in Canada in May, 2003

Used to treat osteoarthritis pain and stiffness

Active ingredient is a nonsteroidal anti-inflammatory drug (NSAID) but the lotion doesn`t have the same side effects of NSAID pills, such as ulcers, gastrointestinal bleeding, dizziness, headache, depression and delayed stomach emptying.

The most common adverse reaction to Pennsaid has been "mild dryness or irritation at the application site," the company says, crediting the minimal exposure of the NSAID to the bloodstream.

Approved for use in Canada, Britain, Italy, Austria, Finland, Luxembourg, Greece, Portugal, Iceland and the Caribbean.

Currently under review by U.S. Food and Drug Administration.

Gruss
B.M.

[SFJL]

@ BrauchGeld

Nur so eine Idee. Die Börse braucht Phantasie.

Pressemitteilung

MOLOGEN AG: Patent für MIDGE gegen chronische Schmerzen wird erteilt
Berlin, 2004-11-01

Die MOLOGEN AG hat vom Europäischen Patentamt den Beschluss zur Erteilung des Patentes EP 1 363 658 zum „Einsatz der MIDGE Technologie gegen chronische und schwere Schmerzen“ erhalten.

Ein mögliches Einsatzgebiet für diese Technologie bildet u.a. die rheumatoide Arthritis, da die MIDGE Genpakete direkt in chronisch entzündete Bereiche wie Knie- oder Handgelenke injiziert werden könnten. Ebenso könnten Schmerzen, die bei Krebserkrankungen durch Metastasen verursacht werden, lokal behandelt werden.

Die MIDGE Genpakete enthalten den genetischen Bauplan zur Herstellung schmerzstillender Stoffe (Peptide) in den Körperzellen des Patienten. Somit entstehen und wirken die biochemischen Signale zur Schmerzbekämpfung direkt am Ort der Schmerz-Ursache und müssen nicht notwendigerweise über die Blutbahn im Körper verteilt werden.

Derzeitig eingesetzte Wirkstoffe müssen über die Blutbahn den Organen zugeführt werden und haben somit teilweise unerwünschte Wirkung im gesamten Körper.

Kommentar vom Vorstandsvorsitzenden der MOLOGEN, Professor Wittig: “Wir hatten die Arbeiten an diesem Projekt zurückgestellt, unter anderem, weil wir aufgrund damaliger Prognosen annahmen, dass dieser 5 Milliarden US-Dollar-Markt in den nächsten 10-15 Jahren durch sogenannte COX-2 Inhibitoren dominiert werden würde. Diese Vorhersage hat sich relativiert, nachdem aufgrund schwerer Nebenwirkungen das zur Gruppe der COX-2 Inhibitoren gehörende Medikament Vioxx vom Markt genommen werden musste. Jetzt, mit der Erteilung des MIDGE Patentes, werden wir die Chancen einer Schmerzbekämpfung mit MIDGE einer erneuten Prüfung unterziehen. Dieses Patent wird eine wichtige Ergänzung unseres gut geschützten intellektuellen Eigentums sein.“

MfG SFJL

[BrauchGeld]

Hi

Dimethaid announces second quarter financial results
TORONTO, Jan 14, 2005 (Canada NewsWire via COMTEX) --

Pharmaceutical developer Dimethaid Research Inc. (TSXMX) today reported consolidated fiscal 2005 results for the second quarter ended November 30, 2004, including the following message to shareholders. All amounts are expressed in United States dollars, unless otherwise noted. The full Fiscal 2005 Second Quarter Report, including financial statements and notes, is posted on the Company`s web site at www.dimethaid.com.

MESSAGE TO SHAREHOLDERS

Restructuring Operations

Since our last report to shareholders, we have made significant progress with our restructuring plan and implementation of a new strategic direction for the Company. As we communicated in our initial letter to shareholders of October 6, 2004, the Company`s affairs are complex and we are still continuing to review a considerable volume of documentation. In addition, the recent financing process consumed significant attention and resources. We are working to complete the restructuring as quickly as possible and are confident this can be substantially accomplished by the spring of 2005.

Key elements of the restructuring successfully completed during the quarter include:

- Securing longer term financing by raising $11.2 million Cdn
- Renewing our agreement with Solvay Pharma for Pennsaid(R) sales and
promotion in Canada
- Terminating the McNeil Consumer Healthcare standstill agreement,
freeing Dimethaid to negotiate with potential U.S. marketing partners
for Pennsaid
- Terminating the In2Focus agreement covering Pennsaid sales and
promotion in the United Kingdom
- Restructuring the $28 million US debt owed to Dr. Kuhne for the
Company`s 2002 purchase of Oxo Chemie AG
- Reducing overall fixed costs by 50 percent
- Reducing Dimethaid`s work force by over 40 percent
- Listing the Markham head office for sale

Consistent with Dimethaid`s new strategic direction is our longer-term goal of finding a contract manufacturer who can assume operation of the Varennes facility. In the meantime, we are investigating contract manufacturing opportunities to utilize excess capacity for other products and maximize revenue.

Important additions to our management team occurred during the quarter. Directors Daniel Chicoine and John London have officially joined Dimethaid`s management team as chairman and vice chairman, respectively. In addition, Grant Britchford has been promoted to vice president, finance and chief financial officer.

Growing Pennsaid Sales

Pennsaid sales experienced strong growth during the second quarter of fiscal 2005. Total Pennsaid revenue grew to $1.9 million ($2.4 million Cdn) for the second quarter, up 54 percent from the same period last year and up 25 percent from the first quarter of fiscal 2005 (approximately 8 percent due to foreign exchange effect). This growth reflects the establishment of Pennsaid in the Canadian market as well as the first shipment of product to our Portuguese partner Jaba Farmaceutica in advance of an official launch in early calendar 2005.

Canadian Market

Breaking out Canadian Pennsaid sales, revenue for the second quarter totalled $1.6 million ($2.0 million Cdn), up 65 percent from the same period last year and up 24 percent from the first quarter of fiscal 2005.

Since the Canadian launch of Pennsaid in May 2003, sales have been negatively impacted by Dimethaid`s financial constraints and the lack of a fully funded marketing program. An additional challenge to date has been the absence of provincial formulary coverage for the product. Included in our co-promotion partner`s strategic marketing plan is the resubmission of applications to provincial formularies for coverage of Pennsaid, to which several responses are expected in calendar 2005.

We expect Canadian Pennsaid sales will continue to grow based on:

- The recent publication of three Pennsaid clinical studies
demonstrating safety and efficacy in prestigious Canadian and U.S.
medical journals;
- A fully funded sales and marketing campaign led by our co-promotion
partner Solvay Pharma;
- Arthritis patients` increasing need for treatment alternatives given
the recent safety issues with COX-2s and traditional oral NSAIDS; and
- Establishing and enhancing relationships with key opinion leaders in
the field of arthritis in Canada.

Dimethaid and Solvay Pharma have finalized an amended agreement covering marketing and sales of Pennsaid in Canada. Under the new terms, Solvay will assume primary responsibility for Pennsaid sales and promotion in Canada. Dimethaid will continue to participate in Canadian marketing initiatives and will retain full responsibility for Canadian distribution and customer service as well as managing international marketing, distribution, licensing, and business development. The two companies will continue to share revenues from Canadian Pennsaid sales according to an agreed percentage formula.

The recent Vioxx withdrawal and increased scrutiny on other COX-2 inhibitors has created a significant market opportunity for Pennsaid. Solvay has developed a comprehensive marketing and promotional program to continue to increase awareness of Pennsaid among Canadian healthcare practitioners and patients, including strategic public relations and consumer campaigns. We are confident that Solvay has the expertise to capitalize on this opportunity and expect to see the effect of their efforts beginning next quarter.

Pennsaid is continuing to gain credibility with healthcare practitioners with the first time publication of three Pennsaid clinical trials in important Canadian and U.S. medical journals. Both the Canadian Medical Association Journal and the U.S. Archives of Internal Medicine published two separate studies demonstrating the safety and efficacy of Pennsaid. In October, the Canadian Journal of Rheumatology published a study demonstrating that Pennsaid works as well as an oral drug and has an overall better safety profile. In an accompanying editorial, Dr. R. Andrew Moore, director of research, Pain Research, University of Oxford, describes the pyramid of evidence supporting topical NSAID efficacy and his view that "the pinnacle is this new trial, demonstrating equivalence of topical and oral diclofenac in a large, valid, high quality trial." These results support Dimethaid in demonstrating the unique position of Pennsaid among other osteoarthritis medications.

International Markets

Earlier this year, we launched two Phase III clinical trials to confirm the long-term safety of Pennsaid and investigate the product`s advantages in combination with a conventional analgesic. We have successfully enrolled patients at over 40 sites across Canada, and are currently adding several sites in the United States. At the current pace of enrollment, we remain on track to complete the studies by the end of calendar 2005 and expect to submit an amended New Drug Application to the FDA by mid-2006. During this process, we will be meeting with potential marketing and distribution partners in an effort to secure a U.S. licensing agreement in advance of FDA approval.

In Europe, Pennsaid sales have not met our expectations. During the quarter, we terminated our agreement with In2Focus covering Pennsaid sales and promotion in the United Kingdom. While we seek a new marketing arrangement, Pennsaid will remain available to healthcare professionals and patients through our U.K. distributor Healthcare Logistics Limited. Some of the issues we have identified in the European markets generally include the lack of relationships with key opinion leaders in the field of arthritis, underinvestment in sales and marketing activities and the incorrect positioning of Pennsaid to compete in the smaller topical market rather than in the larger oral market. In the meantime, we expect European sales will be lower than previously expected until we can analyze and rectify the situation. Our marketing team is currently developing an international product life cycle strategy for Pennsaid. Elements of the strategy include evaluating the most promising international markets for Pennsaid, identifying the most appropriate partners and ensuring brand enhancement and protection.

Developing Our Product Pipeline

Penecure - Last year, the Company received of Health Canada and FDA approval of our clinical trial protocol for Penecure, Dimethaid`s antifungal treatment. Subject to confirming patentability pursuant to ongoing Penecure patent applications, we are planning to move ahead with a Phase I/II clinical trial this calendar year.

WF10 - We also plan to move ahead this year with the development of our immune regulation drug, WF10. Encouraging clinical work done on WF10 in cancer therapy to date leads us to believe that WF10 may play a therapeutic role enhancing the effectiveness of existing treatments and mitigating the side effects of chemo and radiation therapy. We are currently examining a number of possible indications for a Phase I/II clinical trial.

Improving the Value of Your Investment

Our long-term vision is to transition Dimethaid from a fully integrated model to one focused on drug research and development. Under this plan, our goal is to minimize our expenditures while maximizing Pennsaid sales and other revenue via a network of partners to ensure we have the resources to support our planned R&D program.

While we have made considerable progress since the new Board`s election on September 21, 2004, we continue to face several challenges including:

- Capitalization - although we have dramatically reduced fixed costs,
drug development is a capital-intensive business. Dimethaid will need
to aggressively pursue co-development partners and sources of capital
in order to develop our product pipeline.

- Intellectual property - we are refining our intellectual property
strategy to ensure maximum proprietary protection for Dimethaid`s
products.

- Corporate credibility - in the past, Dimethaid`s financial
difficulties and communications issues have negatively impacted the
Company`s reputation in the business and financial world. The new
Board and management team is committed to repairing relationships with
these communities and recovering Dimethaid`s credibility.

Throughout calendar 2005, we expect to make progress securing international marketing and distribution partners for Pennsaid and further advancing development of our promising product pipeline.

On behalf of the board, we wish to thank our shareholders for your continued patience and support. We are pleased with the progress we have made in such a short time period and we assure you that management and the board will continue to work diligently on your behalf to improve the value of your investment in Dimethaid.

Yours truly,

(signed) (signed) (signed)
--------------- -------------- -----------------------
Daniel Chicoine John C. London Henrich R.K. Guntermann
Chairman Vice-chairman President & CEO

FINANCIAL RESULTS

Revenue

For the second quarter ended November 30, 2004, total revenue grew to $2.1 million, up 45 percent from the same period last year and up 23 percent from the first quarter of fiscal 2005. Revenue for the six-month period was $3.8 million, an increase of $1.6 million from the comparable period last year.

Total Pennsaid revenue grew to $1.9 million for the second quarter, up 54 percent from the same period last year and up 25 percent from the first quarter of fiscal 2005 (approximately eight percent due to foreign exchange effect). This growth reflects the establishment of Pennsaid in the Canadian market as well as the first shipment of product to our Portuguese partner Jaba Farmaceutica in advance of an official launch in early calendar 2005.

Gross profit for the second quarter was $1.1 million or 74 percent of net revenue, compared to $1.2 million or 81 percent of net revenue, for the same period a year ago. The decrease in margin percentage due to revenue allocation with our co-promotion partner in Canada is offset by revenue growth.

Research and Development Expenses

Research and development expenses increased to $1.2 million for the second quarter ended November 30, 2004, up from $379,000 for the comparable period last year. For the six-month period, research and development expenses amounted to $2.1 million, compared to $776,000 for the same period last year. The three- and six-month period increases are mainly due to expenses incurred in relation to Pennsaid Phase III clinical trials. The two Phase III studies are designed to confirm the long-term safety of Pennsaid and investigate the product`s advantages in combination with a conventional analgesic.

SG&A Expenses

Selling and marketing expenses for the second quarter were $1.3 million, down from $2.8 million for the comparable period last year. This decrease is mostly due to the termination of the Company`s Canadian sales force and the cancellation of our U.K. sales and marketing contract. For the six-month period, selling and marketing expenses amounted to $3.5 million, down from $4.1 million for the same period last year.

Administrative expenses for the quarter ended November 30, 2004 were $778,000 compared to $539,000 for the same period last year. Year-to-date administrative expenses were $1.4 million versus $1.3 million for the comparable period last year. This slight increase is mainly due to increased insurance costs and, commencing this fiscal year, the expensing of non-cash stock-based compensation.

The Company`s adoption of the CICA handbook section 3870 resulted in a $223,000 year-to-date charge to administrative expenses based on the fair value attributed to stock options granted and vested. In prior years the company provided note disclosure of options, rather than a charge to SG&A.

Manufacturing expenses increased marginally to $234,000 during the second quarter, up from $221,000 from the comparable period last year. Year-to-date manufacturing expenses totalled $521,000, up from $449,000 last year, reflecting higher Pennsaid production volumes commensurate with increased sales.

Amortization

Amortization of property, plant and equipment for the quarter was $102,000, down from $162,000 for the first quarter of fiscal 2005. This reduction is due to the Company`s decision to discontinue expansion of the Varennes facility. Following this decision, packaging machinery acquired last year has been sold, resulting in an ongoing reduction in amortization charges.

Amortization of intangibles decreased $96,000 to $246,000 this quarter versus the same period last year. Year-to-date amortization decreased $191,000, compared to the same period last year, reflecting a partial write-down of intangibles on May 31, 2004.

Foreign Currency

Foreign exchange gains amounted to $74,000 for the current quarter, compared to $95,000 for the same quarter last year. For the six-month period, foreign exchange gains amounted to $135,000, versus $106,000 for the same period last year. The decrease in foreign exchange gains realized in calendar 2004 is due to the decline in value of the U.S. dollar.

Interest Expense

Interest expense amounted to $176,000 ($336,000 for the six-month period), compared to $103,000 for the comparable period last year ($143,000 for the six-month period last year). The increase results from increased short-term borrowings.

Restructuring Costs

Restructuring costs of approximately $4.5 million were recorded in the second quarter of fiscal 2005. These charges include a $3.0 million non-cash write-down of construction in progress and loss on disposal of packaging machinery following the Company`s decision not to complete the expansion project at its Varennes, Quebec manufacturing facility. It also includes $744,000 in severance costs, $394,000 in expenses related to the recent proxy fight and $314,000 related to the termination of the Company`s U.K. sales and marketing contract.

Net Loss

Net loss for the quarter ended November 30, 2004 was $7.3 million, or $0.11 per share, compared with $6.2 million, or $0.14 per share, for the quarter ended November 30, 2003. For the six-months ended November 30, 2004, net loss was $11.1 million, or $0.18 per share, compared with $8.7 million, or $0.21 per share, for the corresponding period last year.

Cash Position

Cash and cash equivalents at the end of the second quarter totalled approximately $7.8 million, compared to $305,000 as at May 31, 2004. This substantial increase is mainly a result of funds generated by the November 16, 2004 convertible debenture unit financing, net of the funds applied to operating activities during the period.

Conference Call

Dimethaid will host a conference call on Monday, January 17, 2005 at 8:30 a.m. (EST) to discuss its second quarter fiscal 2005 results. To access the conference call by telephone, dial 416-640-4127 or 1-800-796-7558. Please connect approximately five minutes prior to the beginning of the call to ensure participation. The conference call will be archived for replay until Monday, January 24, 2005 at midnight. To access the archived conference call, dial 416-640-1917 or 1-877-289-8525 and enter the reservation number 21109657 followed by the number sign. A live audio webcast of the conference call will be available at www.dimethaid.com and www.newswire.ca/webcast/. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any required software downloads. The webcast will be archived at the above web sites for 90 days.

About Dimethaid

Dimethaid Research Inc. is a publicly traded, Canadian pharmaceutical company headquartered in Markham, Ontario, with manufacturing facilities in Varennes, Quebec and Wanzleben, Germany. The company develops and commercializes targeted therapeutic drugs designed to produce minimal side effects. Dimethaid`s two technology platforms focus on transcellular drug delivery and immune system regulation. Products are aimed at expanding treatment options in rheumatology, dermatology, oncology, immunology, and the therapeutic management of chronic viral infections. For more information, please visit www.dimethaid.com.

This release may contain forward-looking statements, subject to risks and uncertainties beyond management`s control. Actual results could differ materially from those expressed here. Risk factors are discussed in the Company`s annual information form filed with the securities commissions in each of the provinces of Canada. The Company undertakes no obligation to revise forward-looking statements in light of future events.

%SEDAR: 00002418E

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For further information: contact: Jodi Peake, Dimethaid Research Inc.,
Director, IR & Corp. Comm., Tel: [phone] Ext. 257, Email:
info(at)dimethaid.com;
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