IVAX Signs Multi-Year Supply Agreement With Novation for Anti-Cancer Drug Paclitaxel

Business Wire, August 13, 2001

Business Editors/Health & Medical Writers

MIAMI--(BW HealthWire)--Aug. 13, 2001

IVAX Corporation (AMEX:IVX) (LSE:IVX.L) announced today it has entered into a multi-year agreement to supply its injectable Onxol(TM) brand equivalent paclitaxel anti-cancer drug to Novation, the largest hospital supply chain management company in the United States providing purchasing solutions for more than 2,300 healthcare organizations, including some of the most prestigious hospitals across the country.

"I am pleased to announce this agreement with Novation to provide their members with our lower-cost, brand equivalent paclitaxel that represents significant savings to hospitals and brings cost-effective care to their patients. We expect to start shipments during September," said Phillip Frost, M.D., chairman and chief executive officer of IVAX Corporation. "We continue to believe in the strong growth prospects of our brand equivalent paclitaxel product because of agreements such as this, along with our considerable experience in this marketplace and enhanced supply and production capacity," said Dr. Frost.

IVAX has a long-standing relationship with Novation and has been supplying its VHA and UHC hospital members with an extensive line of products for a variety of indications across multiple therapeutic categories.

Novation, based in Irving, Texas, is the health care supply chain management company of VHA, Inc. (VHA) and the University HealthSystem Consortium (UHC). It was established in January 1998 through a combination of these two national healthcare alliances. Novation serves the purchasing needs of more than 2,300 members and affiliates of VHA and UHC, including some of the most prestigious hospitals across the country. Novation also serves more than 5,400 members of HealthCare Purchasing Partners International (HPPI), another group purchasing organization owned by VHA and UHC.

IVAX' injectable anti-cancer drug, paclitaxel, is the brand equivalent to Bristol-Myers Squibb Company's Taxol(R), the largest selling anti-cancer drug in the world with U.S. sales well in excess of $1.0 billion in 2000. Since launching its brand equivalent paclitaxel in the U.S. in October 2000, IVAX has achieved more than $160 million in sales. In addition, production capacity for IVAX' paclitaxel was enhanced in May 2001 when the FDA approved an additional supplier of the paclitaxel active ingredient and contract manufacturer of the finished product.

IVAX is currently developing a patented, oral dosage form of paclitaxel which is anticipated to be of substantial benefit to patients. Recently completed Phase II clinical trials for IVAX' oral form of paclitaxel have shown anti-cancer activity in patients with advanced lung cancer. The results of these trials suggest that IVAX' oral paclitaxel, by itself, may be as effective as various combinations of intravenous drugs currently used to treat lung cancer, but with greater convenience and fewer side effects. The company plans to conduct a Phase III clinical trial in which oral paclitaxel will be compared with standard intravenous chemotherapy as an initial treatment of advanced lung cancer. IVAX is also committed to bringing other important new oncology drugs to market, such as its TP38 brain cancer compound which is showing promising results in ongoing Phase I/II clinical trials at the Duke University Medical Center and the University of California at San Francisco.

IVAX Corporation, headquartered in Miami, Florida, is engaged in the research, development, manufacturing, and marketing of branded and brand equivalent pharmaceuticals and veterinary and diagnostic products in the U.S. and international markets.

Except for the historical matters contained herein, statements in this press release are forward-looking, including statements regarding IVAX' expectation that the agreement with Novation will continue for multiple years, the anticipation that Novation patients and hospitals will experience significant savings and cost-effective care as a result of the agreement with IVAX, the proposed commencement date of shipments of paclitaxel to Novation, IVAX' beliefs regarding the strong growth prospects for paclitaxel, IVAX' enhancement of its supply and production capacity for paclitaxel, IVAX' plans for Phase III clinical trials for oral paclitaxel, IVAX' beliefs regarding the results of the Phase II clinical trials for oral paclitaxel and the anticipated benefit to patients of oral paclitaxel, and IVAX' plans and beliefs regarding other new oncology drugs, including the TP38 brain cancer compound under development, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward looking statements reflect our current views regarding future events, our business and prospects which are subject to and may be affected by risks, uncertainties and assumptions, including that IVAX may not be able to obtain a consistent and cost-effective source of raw materials for paclitaxel; that there may be delays in the production or shipment of paclitaxel; that Phase III clinical trials for IVAX' oral paclitaxel may not be commenced, may fail, may not achieve the expected results or effectiveness and/or may not generate data that would support the approval or marketing of these products for the indications being studied or for other indications; that IVAX' oral paclitaxel, by itself, may not have effectiveness comparable to other treatments of lung cancer, and may not have greater convenience and less side effects; that others may develop oral paclitaxel and other oncology formulations that are superior to IVAX formulations; that production capacity for paclitaxel may diminish; that the clinical trials for TP38 may not be commenced, may fail, may not achieve the expected results or effectiveness and/or may not generate data that would support the approval or marketing of these products for the indications being studied or for other indications, that IVAX may not successfully develop or bring to market other oncology drugs, and that economic and other factors could decrease the demand for pharmaceutical products. In addition, with respect to the expectation that the Novation agreement will be multi-year, this expectation could be adversely affected by the fact that either party may earlier terminate the contract. In addition to the risk factors set forth above, investors should consider the economic, competitive, governmental, technological and other factors discussed in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Taxol(R) is a registered trademark of the Bristol-Myers Squibb Company.