Novartis Strongly Extends its Leading Presence in Women's Health / Key Hormone Replacement Products Sublicensed From Rhone-Poulenc Rorer

5.10.1999, 14:07

BASEL, Switzerland, and ANTONY, France, and COLLEGEVILLE, Pa.(PROTEXT) - Novartis Pharma AG, the global pharmaceutical sectorof the life sciences company Novartis, and Rhone-Poulenc RorerInc. (RPR), the global pharmaceutical subsidiary of Rhone-PoulencS.A. (NYSE: RP) announce their signing of sublicensing agreementsfor the marketing of Estalis(R) (estradiol/norethisterone acetatetransdermal system) and Menorest(R) (transdermal 17-beta-estradiol), two hormone replacement systems for the treatment ofmenopausal symptoms and for the prevention of osteoporosis.Financial terms of the agreements are not disclosed. "This transaction is strategic for Novartis on two counts,"said Jerry Karabelas, Head of Novartis Healthcare and CEO ofNovartis Pharma AG. "First, it significantly builds our leadingfranchise in women's health with an excellent product fit thatextends the versatility of our offer to doctors and patientsacross a broad spectrum of hormone replacement therapy needs.Secondly, it reflects our stated aim of adding to top line growththrough greater emphasis on licensing activity." Under the terms of the agreements Novartis will acquireexclusive marketing rights to the products in Europe and otherworld markets, and assume ownership of the products and relatedassets, in these territories. RPR will continue to marketEstalis(R) under the registered trade name CombiPatch(R)(estradiol/norethindrone acetate transdermal system) in the US,and will continue the development of Estalis(R) and Menorest(R)in Japan. Both hormone replacement systems were originallydeveloped by Noven Pharmaceuticals (Nasdaq: NOVN) who licensedthem exclusively to RPR, and who will continue to supply bothNovartis and RPR. Novartis pioneered the transdermal hormone replacement therapymarket in the 1980s, especially in combination therapy products,meeting the needs of peri and post menopausal women. By the year2005, it is conservatively estimated that 36% of women worldwidewill be aged over 50 with a potential need for alleviation ofdistressing menopausal symptoms that compromise quality of life.Such symptoms include disturbed sleep, memory loss, skin atrophy,and brittle bones. Novartis is a world leader in Life Sciences with corebusinesses in Healthcare, Agribusiness and Consumer Health(Nutrition and Self-Medication). In 1998, Novartis Group saleswere CHF 31.7 billion, of which CHF 17.5 billion were inHealthcare, CHF 8.4 billion in Agribusiness and CHF 5.8 billionin Consumer Health. The group annually invests more than CHF 3.7billion in R&D. Headquartered in Basel, Switzerland, Novartisemploys about 82,000 people and operates in over 140 countriesaround the world. Rhone-Poulenc Rorer is a global pharmaceutical companydedicated to improving human health. Rhone-Poulenc S.A. (NYSE:RP) is a leading life sciences company, growing throughinnovations in human, plant and animal health and through itsspecialty chemicals subsidiary, Rhodia. With sales in 1998 ofFF86.8 billion (US$14.8 billion; Euros 13.2 billion), the companyemploys 65,000 people in 160 countries worldwide. The RPRInternet web site is at http://www.rp-rorer.com. ots OriginalText Service: Rhone-Poulenc Rorer Inc. Internet:http://www.newsaktuell.de Contact: Nerys Wadham of Novartis, 4161 324 2440; or Terri Pedone, 610-454-8284, or Karen Scott, 33-1-55-71-7622, both of Rhone-Poulenc Rorer Web site: http://www.rp-rorer.com

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