TheraTech, Inc./Schwarz Pharma Agreement Expands Androderm Distribution To 13 More Countries

Business Wire, Dec 18, 1997

SALT LAKE CITY, and MONHEIM, Germany--(BW HealthWire)--Dec. 18, 1997--TheraTech, Inc. (Nasdaq: THRT) and Schwarz Pharma AG today announced an agreement giving Schwarz Pharma exclusive distribution and marketing rights to TheraTech's Androderm(R) transdermal testosterone system for men in 13 European and East European countries.

Under the agreement, TheraTech will receive a signing fee, milestone payments and royalties on sales. In addition, TheraTech retains manufacturing rights to the patch, which it produces in both 2.5 milligram (mg) and 5 mg strengths in its Salt Lake City production facility. The company also retains co-marketing rights.

Schwarz Pharma receives marketing rights to the product in Italy, France, The Netherlands, Belgium, and Luxembourg, as well as the Eastern European countries of Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Slovakia, Russia and Ukraine. The inclusion of France was enabled by TheraTech's reacquiring these rights from Laboratoires Fournier.

SmithKline Beecham markets the product under the name Andropatch(TM) in the UK and Ireland, and as Androderm in the United States. Astra AB markets the product as Atmos(TM) in the Nordic countries, and has rights to Germany, Switzerland and Austria.

"Schwarz Pharma is well positioned to distribute our testosterone patch in these important European markets," stated Dr. Dinesh C. Patel, TheraTech's Chairman, President and CEO. "They have a strong presence in these countries, particularly in urology medications, and will be moving aggressively to secure the regulatory clearances needed to launch the product."

"Schwarz Pharma welcomes the opportunity to market TheraTech's transdermal testosterone system," stated Patrick Schwarz-Schuette, Chairman of the Executive Board of Schwarz Pharma. "It will produce a good marketing synergy with Viridal, our drug for impotence."

The patented TheraTech transdermal testosterone patch is intended for the treatment of male hypogonadism, a syndrome in which the body produces insufficient amounts of the male hormone, testosterone. Testosterone, a naturally occurring hormone, is essential for the development and maintenance of male physical and sexual characteristics. The symptoms of hypogonadism include impotence, decreased libido, fatigue and depression.

Schwarz Pharma, headquartered in Monheim, Germany posted worldwide sales in 1996 of $800 million (U.S.). Already active in cardiovascular, urological and gastrointestinal medication, Schwarz Pharma searches for and develops new drug therapies to address unmeet medical needs. The Schwarz Group markets its products through its affiliates in Germany, the United States, France, Italy, the UK, Poland and China, and though its licensing agreements in 50 countries worldwide.

TheraTech, Inc. develops and manufactures innovative, controlled-release drug delivery products, including: a variety of transdermal patches; oral transmucosal systems for delivery of peptides and other drugs requiring rapid onset (i.e. pain medications); a range of oral controlled-release systems; pulmonary technologies for local and systemic drug administration; and topical preparations. The Company has over 20 products in its development pipeline and holds 46 issued and/or pending patents.

TheraTech has research, development and/or marketing agreements with leading multi-national as well as regional pharmaceutical companies, including: Eli Lilly, Procter & Gamble, Pfizer, SmithKline Beecham, Wyeth-Ayerst, Astra, CEPA, Lavipharm S.A., Schwarz Pharma AG, Samyang, Meiji, Sankyo and Nachiiko.

For additional information on TheraTech, Inc., visit the Company's Web Site at www.thrt.com, or e-mail us at Investor@thrt.com . For additional information on Schwarz Pharma AG, visit the Company's Web Site at www.schwarzpharma.com . -0-

Statements contained in this release which are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These encompass TheraTech's beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements included in this release are made as of the date hereof and are based on information available to TheraTech as of such date. TheraTech assumes no obligation to update any forward-looking statement. It is important to note that actual outcomes and TheraTech's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties related to future market growth. Readers should also refer to the risk disclosures outlined in TheraTech's filings with the Securities and Exchange Commission on Forms 10-K and 10-Q.

CONTACT: TheraTech, Inc.

Eric Aguiar M.D. or Alan Behunin

801/588-6200

or

Schwarz Pharma

Dr. Klaus Graebener, 49 2173 48 1414

FAX: 49 2173 48 1856