Esprit Pharma, Inc. Acquires Exclusive North American Rights To A Novel Treatment For Hypoactive Sexual Desire Disorder In Women From Novavax, Inc.

EAST BRUNSWICK, N.J.--(BUSINESS WIRE)--May 19, 2006--Esprit Pharma, Inc. today announced that it acquired exclusive North American rights to a novel testosterone based treatment for hypoactive sexual desire disorder (HSDD) in women. The compound is currently in phase II clinical trials in the United States. The compound is being developed as a lotion with the active ingredient encapsulated in a proprietary micellar-nanoparticle transdermal system developed by the licensor, Novavax, Inc. (NASDAQ: NVAX - News) of Malvern, Pa. This is Esprit's second deal with Novavax, having acquired rights to the estradiol topical emulsion ESTRASORB® from Novavax earlier last year.

"We are very pleased to have acquired our initial development compound in one of the areas of our current focus," said John T. Spitznagel, Esprit's Chairman & CEO. "The compound is another in Novavax Inc.'s unique technology platform. This compound will broaden our presence in the Women's Health care field," continued Mr. Spitznagel.

"Together with our SANCTURA®, ESTRASORB®, PROQUIN® XR and PROSED® product lines, this newly licensed compound, when launched will offer substantial opportunities to realize benefits associated with product synergies," noted Mr. Spitznagel.

Commenting on today's announcement, Greg Stokes, President & COO of Esprit, stated, "The licensing of this compound solidifies Esprit's commitment to the Women's Health Care specialty. Esprit will be responsible for the full clinical development of this compound and its ultimate marketing and promotion. We believe that this compound will be readily accepted by those women suffering from HSDD because of its elegant, user friendly dosage form."

Mr. Stokes further noted, "HSDD is an under diagnosed condition. It is anticipated that this compound when launched, will help to relieve a cause of concern in many women." Given the compound's delivery characteristics, plus the focused strength of our sales and marketing staff, backed by Esprit's dedication to medical education, we expect to realize substantial long-term growth in sales of this compound, once launched," concluded Mr. Stokes.

Dr. Rahul Singhvi, Novavax' President and CEO stated: "This important agreement substantiates Novavax' capabilities as a product development company and validates the value of the micellar nanoparticle technology (MNP) as an important FDA approved drug delivery system. We are delighted with our continuing collaboration with the Esprit Pharma management team which has a proven track record of successfully launching new products."

Financial terms of today's announced transaction were not disclosed.

About Esprit Pharma

Esprit Pharma is a niche oriented, forward thinking pharmaceutical company committed to improving patient outcomes and well-being within the Genito-urinary and women's health care fields. Led by a highly experienced management team, Esprit focuses on serving the unique needs of physicians by identifying opportunities and selectively acquiring and maximizing the potential of approved and late-stage development medicines and providing support through internal expertise and a dedication to medical education. A privately held company, Esprit has investment support from the leading healthcare venture capital and private equity firms of Domain Associates, LLC (http://www.domainvc.com), New Enterprise Associates (http://www.nea.com) and Apax Partners, Inc. (http://www.apax.com). For additional information visit the Company's Internet site at www.EspritPharma.com.

Contact: Esprit Pharma Anthony A. Rascio, 732-828-9950 anthony.rascio@espritpharma.com

Source: Esprit Pharma, Inc.