Watson Pharmaceuticals Inc has entered into a marketing and supply agreement, whereby UCB Pharma will market Watson's oxybutynin transdermal product in Europe. Watson currently markets the product in the United States as Oxytrol. Oxytrol is the first and only transdermal therapy for the treatment of overactive bladder with symptoms of urge urinary incontinence, urgency and frequency.

Under the terms of the agreement, Watson will receive an undisclosed upfront payment from UCB and milestone payments upon the occurrence of certain events. Watson will manufacture and supply the product for UCB at an agreed price and will receive royalties based on sales of the product.

"We are delighted to be partnering with UCB, whose successful and well established commercial presence will provide Watson with an outstanding strategic marketing partner for Oxytrol in the European market," said Allen Chao, Watson's chairman and chief executive officer. "Overactive bladder can have a significant impact on the lives of those who suffer from it, and we are delighted that through this partnership, an important new treatment option will be made available for over 20 million Europeans suffering from this condition."

In March 2003, Watson announced the filing of a European Marketing Authorization Application, seeking European marketing approval for its oxybutynin transdermal product as part of a qualified centralized procedure with the European Medicines Control Agency (EMEA), which consists of 15 European member countries.