IVAX Enhances Its U.S. Respiratory Franchise With Acquisition of Two Intranasal Steroid Products From Elan Corporation

Business Wire, Sept 26, 2001

Business Editors/Health & Medical Writers

MIAMI--(BUSINESS WIRE)--Sept. 26, 2001

IVAX Corporation (AMEX:IVX) (LSE:IVX.L) and Elan Corporation, plc. (NYSE:ELN) jointly announced today that they have entered into an agreement for IVAX to acquire from Elan the currently marketed intranasal steroid brand products, Nasarel(R) and Nasalide(R), for the treatment of seasonal and perennial allergic rhinitis.

IVAX will market these products in the United States through its domestic proprietary products subsidiary, Wakefield Pharmaceuticals, which is in the process of changing its name to IVAX Laboratories. This transaction is subject to governmental consents and other conditions and is expected to close by the end of this year. Terms of this transaction are not being disclosed.

"The acquisition of these branded intranasal corticosteroid products fits our marketing strategy for IVAX' growing worldwide respiratory franchise and will be a major addition to IVAX Laboratories' present line of respiratory products marketed through its direct sales force to physicians and specialists across the U.S.," said Neil Flanzraich, vice chairman and president of IVAX Corporation. "Nasarel and Nasalide presently have a smaller share of the market than the market leaders, Flonase(R) and Nasonex(R), but their efficacy and safety, as shown in multi-center clinical trials and their long history on the market, make us believe that they have major growth potential," Mr. Flanzraich added.

Nasarel, developed as an improved formulation of Nasalide, contains a unique moisturizing glycol formulation in an alcohol-free and fragrance-free solution and is priced as the lowest-cost option among the main intranasal steroid brands. The active ingredient in Nasarel and Nasalide is protected under a patent that expires in 2007, and Nasarel is also protected under two formulation patents through 2006.

Allergic rhinitis affects more than 25% of the U.S. population and intranasally administered corticosteroids are commonly used to control the symptoms of this condition. The intranasal steroid market in the U.S. is growing rapidly and approaching $1.5 billion in annual revenues.

"Our commitment to becoming one of the world's leading respiratory companies remains strong. We anticipate IVAX Laboratories' sales force will grow to about 200 by the end of next year as we expand the sales of Nasarel and Nasalide and prepare for the marketing of our branded asthma inhalers in the U.S.," said Mr. Flanzraich.

"The divestiture of Nasarel and Nasalide is consistent with our plan to reduce the number of currently marketed brands from 18 to eight, and concentrate promotion and investment in the therapeutic areas of neurology, pain management, oncology and dermatology. We are delighted that IVAX has decided to add these two products to their respiratory franchise,: said Michael Sember, executive vice president business development of Elan.

IVAX Corporation, headquartered in Miami, Florida, is a multinational company 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.

Copies of this and other news releases may be obtained free of charge from IVAX' Web site at http://www.ivax.com.

This press release contains certain forward-looking statements regarding product development efforts and product performance and other non-historical facts which are being are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that cannot be predicted or quantified and, consequentially, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, changing market conditions, the availability and cost of raw materials and other third party products, the impact of competitive products and pricing, successful compliance with extensive, costly, complex and evolving governmental regulations and restrictions, the ability to increase IVAX Laboratories' sales force and increase sales of these acquired products and other respiratory products, the successful development and marketing of IVAX' inhaler products in the U.S., and timely governmental approval of the transaction described herein. In addition to the risk factors set forth above, IVAX' forward looking statements may also be adversely affected by general market factors, competitive product development, product availability, federal and state regulations and legislation, the regulatory process for new products and indications, manufacturing issues that may arise, trade buying patterns, patent positions and litigation, among other things. For further details and discussion of these and other risks and uncertainties, see IVAX' Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Flonase(R) is a registered trademark of Glaxo Group Limited Corporation. Nasanex(R) is a registered trademark of Schering Corporation.