SOLAR SYSTEMS <SSDN>, INKEY OF SPAIN SET PACT
Solar Systems by Sundance Inc said it
agreed to buy a 45 pct interest in a company that will sell
condoms produced by INKEY SA of Spain.
    It said a spermicide used in INKEY's condoms contains an
ingredient that may help prevent the sexual transmission of
AIDS. The ingredient was cited in an article in the West German
publication, Aids Forschung. But it said the article was
about the ingredient and did not mention the spermicide or the
condoms made by INKEY.
    The company also said it is changing its name to
Eurocapital Corp shortly.
    Solar Systems said it was buying the 45 pct stake in a
U.S.-based <Europharmaceutical Co>. INKEY and an affiliate own
the remaining shares of the company, which was set up to
distribute condoms and vaginal products that are made, or are
being developed by INKEY.
    The agreement calls for a two mln dlr payment to Inkey for
the distributorship. The first 500,000 dlr payment is due 30
days after the products are approved by the Food and Drug
Administration. It said Europharmaceutical plans to soon file
with the FDA to market the condom, but expects the approval
process to be a lengthy one.
    The company said the active ingredient in the spermicide is
currently used in the U.S. in antiseptic applications unrelated
to condoms. As far as it knows, the ingredient has not been
tested in a spermicide.
    Inkey's condoms will be sold in the U.S. under the brand
name, "Carlton." The exclusive distribution contract for the
products runs for three years and is renewable for one-year
periods, the company said.
    It said the condoms are currently sold in Spain but have
not gone on sale in other European countries.
    It said Europharmaceutical currently does not have the
resources to make the payments under the distribution agreement
or fund the studies necessary to obtain marketing approval from
the FDA.
    The company also said Europharmaceutical is in talks to
acquire either one or more publicly held companies with little
or no assets. In the event an acquisition goes through, Solar
Systems' interest in Europharmaceutical would be diluted below
its current 45 pct.
 Reuter
