LifeCycle Pharma A/S has entered into three strategic collaboration agreements with leading players in the pharmaceutical industry. These companies are Sandoz Inc. (an affiliate of Novartis AG), Merck Generics (a subsidiary of Merck KGaA of Darmstadt, Germany) and H. Lundbeck A/S.

"We are delighted to be able to announce strategic collaboration agreements with three such prominent global pharmaceutical companies," said Dr. Flemming Ørnskov, President and CEO of LifeCycle Pharma. "These new partnerships provide a strong validation of our innovative MeltDose technology which improves the bioavailability of drugs with low water solubility. They also validate our business model; a model based on identifying and developing products which represent significant business opportunities for big pharmaceutical companies. We are now also a significant step closer to the first commercial launch of a product derived from LifeCycle Pharma's strong research and development pipeline", said Dr. Flemming Ørnskov.

Details of the three strategic collaboration agreements include:

Sandoz and LifeCycle Pharma have entered into an exclusive development and commercialisation agreement regarding the US market with respect to an undisclosed fenofibrate product developed by LifeCycle Pharma. The parties will be jointly responsible for the future development and Sandoz will be solely responsible for later commercialization of the product in the US. LifeCycle Pharma will receive milestone payments and a significant double-digit royalty rate of future sales. In 2005, the US market for fenofibrate products exceeded USD 1 billion.

Merck Generics and LifeCycle Pharma have entered into an exclusive development and commercialization agreement regarding the European markets with respect to an undisclosed fenofibrate product developed by LifeCycle Pharma. Merck Generics is currently considering when to initiate the pivotal studies in Europe with the fenofibrate product. Merck Generics will conduct the future development and commercialization of the fenofibrate product, and will be responsible for all costs associated with these activities. LifeCycle Pharma will receive milestone payments in addition to a significant double-digit royalty rate of future sales. In 2005, the European market for fenofibrate products amounted to approx. USD 235 million.

Lundbeck and LifeCycle Pharma have entered into an agreement by which Lundbeck is granted rights to LifeCycle Pharma's MeltDose technology in connection with Lundbeck's further development of two internal pre-clinical CNS-related projects. LifeCycle Pharma will receive milestone payments related to achieved results in the future developments of these projects. Due to the nature of an existing agreement between Lundbeck and LifeCycle Pharma, LifeCycle Pharma will not receive royalties on future possible revenues of these two CNS-related projects.