BioMarin Pharmaceutical Inc announced that it has signed definitive agreements with Medicis Pharmaceutical Corporation to obtain its paediatric business as defined in the transaction documents. The transaction includes: Orapred, a patent-protected drug to treat asthma in children; two additional proprietary formulations of Orapred in development; and a U.S. sales force that calls on pediatricians nationally. The closing of the transaction is subject to regulatory approval in the U.S. and is expected to be completed in the second quarter of 2004. Following the close, BioMarin will be a fully integrated, pediatrics-focused biopharmaceutical company.

The transaction should provide three significant financial and strategic benefits to BioMarin:

The transaction is expected to generate significant cash flow and accelerate BioMarin's goal of reaching profitability -- Net sales of Orapred are expected to be about $42 million for the 12 months that will end December 31, 2004. The transaction is accretive to BioMarin immediately upon closing, excluding non-cash deal related charges. It also includes two new formulations of Orapred, one ready for regulatory submission in 2004 and the other in advanced development, both of which offer near-term opportunities to further expand sales in pediatric asthma.

The new products include a non-refrigerated formulation, "Orapred 2," which enhances convenience of use, and a quick-dissolve tablet formulation utilizing proprietary technology that could potentially expand the business to older pediatric patients. In addition, BioMarin intends to launch Orapred in one or more markets outside of the U.S. in the second half of 2005 or early 2006.