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IOMED, Inc.
3385 West 1820 South, Salt Lake City, UT 84104 * (801) 975-1191

The company develops, manufactures and commercializes controllable drug delivery systems using iontophoretic technology. Iontophoresis is a non invasive method of enhancing and controlling the transport of drugs using low level electric current.

Primary Underwriting Group
ManagerTierPhone
Everen Securities, Inc.Lead Manager (312) 574-6859
Hanifen, Imhoff Inc.Co-manager (303) 296-2300
Wedbush Morgan SecuritiesCo-manager (213) 688-8050

Offering Information
AMEX:IOX Manufacturing: SIC 2834
Type of Shares:Common Shares Filing Date:10/3/97
U.S. Shares:1,700,000 Offer Date:4/24/98
Non-U.S. Shares:0 Filing Range:$7.50 - $8.50
Primary Shares:1,700,000 Offer Price:$7.50
Secondary Shares:0 Gross Spread:$0.52
Offering Amount: $13,600,000 Selling:$0.31
Expenses:$0 Reallowance:$0.10
Post-IPO Shares:7,200,000
Employees:73

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Parsons Behle & Latimer
Bank's Law Firm: Skadden, Arps, Slate, Meagher & Flom
Auditor: Ernst & Young

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
6/30/97 6/30/97
Revenue:$9.28Assets:$8.66
Net Income:-$14.04Curr Assets:$8.26
EPS:-$0.94Liabilities:$18.16
Prior EPS:$0.10Curr Liab:$1.12
Cash Flow/Oper:$0.99Equity:-$9.49
Cash Flow/Fin:$0.08Cash:$6.35
Cash Flow/Inv:$0.77Working Cap:$7.14

Competition
The drug delivery, pharmaceutical and biotechnology industries are highly competitive and rapidly evolving, with significant developments expected to continue at a rapid pace. The Company's success will depend upon maintaining a competitive position and developing products and technologies for efficient and cost-effective drug delivery. The Company's products will compete with other formulations of drugs and with other drug delivery systems, including other iontophoretic delivery systems. The Company believes its products will compete on the basis of quality, efficacy, cost, convenience, safety and patient compliance, but there can be no assurance any of the Company's products will have advantages significant enough to cause medical professionals to adopt their use. New drugs or further developments in alternative drug delivery methods may provide greater therapeutic benefits for a specific drug or indication, or may offer comparable performance at lower cost than those offered by the Company's iontophoretic systems. The Company is aware of many other competitors in the general field of drug delivery, including competitors developing injectable or implantable drug delivery systems, oral drug delivery technologies, passive transdermal systems, oral transmucosal systems and intranasal and inhalation systems. The Company is also aware of other companies that have developed or are currently developing iontophoretic and other electrotransport drug delivery systems. There can be no assurance that developments by these parties or others will not render the Company's products or technologies uncompetitive or obsolete. Many of the Company's existing or potential competitors have substantially greater research and development capabilities, experience, manufacturing, marketing, financial, and managerial resources than the Company. Accordingly, the Company's competitors may succeed in developing competing technologies, obtaining FDA approval or gaining market share for products more rapidly than the Company. Both Alza and Empi, Inc. ("Empi") are engaged in the development and/or marketing of iontophoretic devices. Alza is undertaking the development of iontophoretic drug delivery systems, but does not currently market any iontophoretic products. Empi is the Company's primary competitor in the treatment of acute local inflammation in the physical therapy market and, the Company estimates, controls a majority of the retail iontophoresis market for that indication. Currently, no other company markets an iontophoretic system for the inducement of local anesthesia. The Company's iontophoretic system for delivering Iontocaine for the inducement of local dermal anesthesia will therefore primarily compete with traditional methods of delivering local dermal anesthetics by needle injection or will be used in circumstances where either no anesthesia is used, due to the pain associated with the needle injection (including needle injections themselves), or where topical anesthetic creams are used. The most effective and widely used topical anesthetic cream, EMLA, is manufactured and sold by Astra Corporation, a large Swedish pharmaceutical company. There can be no assurance that the Company can effectively compete with these products or any other drug delivery systems.

Business Plan
The Company's primary business goal is to establish its proprietary iontophoretic drug delivery systems as a cost-effective preferred means of delivering a wide range of drugs. The Company's strategy for achieving this goal includes (i) pursuing product development of drug delivery systems for off-patent drugs with known safety and efficacy; (ii) entering into collaborative relationships with pharmaceutical companies for the delivery of new chemical entities and proprietary drugs; (iii) broadening the market penetration and potential applications of the Company's existing delivery systems; (iv) enhancing the Company's technology platform through internal research and development; (v) pursuing new technology through in-licensing and acquisitions; and (vi) retaining control of the manufacturing revenue stream.

Use of Proceeds
The proceeds from the proposed offering will be used for research and development, preclinical and clinical studies, expansion of sales and marketing capabilities, consolidation and equipping of company facilities, and working capital and other general corporate purposes including the repayment of indebtedness.

Executive Officers and Directors
Officer NameTitleAge
James R. WeersingChairman of the Board of Directors58
Craig S. LewisDirecotr of Anesthesia Project37
Mary CrowtherDirector of Administration and Finance46
Jamal S. YnakiDirector of Engineering and Quality37
Timothy B. LucasDirector of National Sales34
W. Tim MillerExecutive Vice President, Sales and Marketing and General Manager, Clinical Systems46
Ned M. Weinshenker, Ph.D.President, Chief Executive Officer and Director, President and Chief Executive Officer, Dermion54
Robert J. LolliniVice President, Finance Chief Financial Officer and Secretary; Vice President, Secretary and Treasurer, Dermion43
Thomas M. Parkinson, Ph.D.Vice President, Research and Development; General Manager, Dermion60

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