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Alpharma Inc. (ALO) Announces Agreement With Indian Firm Shasun Chemicals & Drugs Limited To Develop And Manufacture Generic Prescription And API Products

10/19/2005 5:09:45 PM

FORT LEE, N.J., May 31 /PRNewswire-FirstCall/ -- Alpharma Inc., announced today that it has entered into an agreement with Shasun Chemicals & Drugs Limited ("Shasun"), under which the Chennai-based global pharmaceutical company will develop, manufacture and supply generic prescription products and active pharmaceutical ingredients for exclusive sale by Alpharma. This agreement is expected to significantly accelerate the expansion of Alpharma's global generic product pipeline in line with company strategy.

Under the agreement, Shasun will develop active pharmaceutical ingredients and final formulations, and manufacture finished products for exclusive sale by Alpharma worldwide. Alpharma will take responsibility for the regulatory filings and will own all intangible assets developed by the partnership. During the period of exclusive sales by Alpharma, the two companies will share profits and Alpharma will reimburse Shasun for certain development and manufacturing costs.

Ten products with global brand sales exceeding $20 billion are initially planned under this agreement, but additional products may be added over time. Product launches are scheduled to begin in 2007. The agreement with Shasun follows a similar development and manufacturing arrangement with Chennai-based Orchid Chemicals & Pharmaceuticals, Ltd. announced in February.

"Industry data suggests that manufacturing costs for Indian pharmaceutical companies are more than 50% below U.S. and European multi-national companies, and drug development costs are a fraction of U.S. costs," said Ingrid Wiik, Alpharma Vice Chairman, President and Chief Executive Officer. "We are pleased to be working with a partner with Shasun's expertise, and look forward to a mutually beneficial and enduring collaboration. This agreement, along with our earlier announced deal with Orchid, gives us access to low cost manufacturing as well as new markets, while allowing complete control of the supply chain for an incremental stream of new products. The combination of these two agreements, which will supplement our internal development efforts, is expected to result in twenty new product launches beginning in 2007."

Shasun, incorporated in 1976 and headquartered in Chennai, India is primarily a manufacturer of APIs, intermediates and excipients. It is also engaged in contract research and contract manufacturing for major global pharmaceutical companies, and is the world's largest producer of ibuprofen (bulk drug) and supplies about 15% of the U.S market requirements of the drug. In addition, the company is a leading company in the anti-inflammatory, anti- ulcerative and anesthetic segments.

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Alpharma Inc. is a global generic pharmaceutical company with leadership positions in products for humans and animals. Alpharma is presently active in more than 60 countries. Alpharma is a leading manufacturer of generic pharmaceutical products in the U.S., offering solid, liquid and topical pharmaceuticals. It is also one of the largest suppliers of generic solid dose pharmaceuticals in Europe, with a growing presence in Southeast Asia. Alpharma is among the worlds leading producers of several important pharmaceutical-grade bulk antibiotics and is internationally recognized as a leading provider of pharmaceutical products for poultry, swine and cattle.

Alpharma Inc.

CONTACT: Kathleen Makrakis, VP, Investor Relations of Alpharma Inc.,+1-201-228-5085,

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