Alpharma Inc. (ALO) Announces Development And Manufacturing Agreement With Orchid Chemicals & Pharmaceuticals Ltd. 
10/19/2005 5:12:49 PM

FORT LEE, N.J., Feb. 24 /PRNewswire-FirstCall/ -- Alpharma Inc., announced today that it has entered into an agreement with Orchid Chemicals & Pharmaceuticals Ltd ("Orchid"), a Chennai-based global pharmaceutical company, whereby Orchid will develop, manufacture and supply generic prescription products for exclusive sale by Alpharma. Orchid's responsibilities include development of active pharmaceutical ingredients, development of final formulations, and manufacture of finished products for exclusive sale by Alpharma in the U.S. and Europe. During the period of exclusive sales by Alpharma, Alpharma and Orchid will share profits and Alpharma will reimburse Orchid for certain development costs. Ten products, with launch dates commencing in 2007, have been initially selected for this arrangement. The company anticipates that additional products will be added over time.

"We are extremely pleased to enter into this strategic partnership with an organization of Orchid's caliber," commented Ingrid Wiik, Alpharma Vice Chairman, President and Chief Executive Officer. "In 2004, our focus on research and development intensified as we increased spending levels and our number of ANDA filings. This arrangement will supplement our internal development efforts, strengthening our pipeline and giving us access to new markets, low cost manufacturing, additional development capacity, and more favorable access to raw material supply. In addition, this end-to-end arrangement will allow complete control of the supply chain for these products, including the API. We look forward to a long and mutually beneficial relationship with Orchid."

Orchid, established in 1992, is a global pharmaceutical company headquartered in Chennai, India, and is among the top ten pharmaceutical companies in India based on sales. Orchid generated sales in fiscal 2004 of approximately $150 million and is a leader in the global cephalosporins market, and is also a supplier of non-cephalosporin bulk actives, formulations, and nutraceuticals with exports to more than 75 countries.

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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 world's 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.

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