| Santarus Announces Achievement of $5 Million Milestone Under OTC License Agreement with Schering-Plough |
SAN DIEGO--(BUSINESS WIRE)--July 20, 2007--Santarus, Inc. (NASDAQ:SNTS), a specialty pharmaceutical company, today announced that a $5 million milestone relating to progress on clinical product development strategy has been achieved under its over-the-counter (OTC) license agreement with Schering-Plough HealthCare Products, Inc. for proton pump inhibitor (PPI) products using Santarus' patented PPI technology. Under the terms of the OTC license agreement, Schering-Plough is responsible for the development, manufacturing and commercialization of OTC products using Santarus' PPI technology with the lower dosage strength of 20 mg of omeprazole for heartburn-related indications in the U.S. and Canada. Santarus will continue to manufacture, promote and sell its ZEGERID(R) (omeprazole/sodium bicarbonate) prescription products in both 20 mg and 40 mg dosage strengths of omeprazole in the U.S. prescription market for PPI products. In addition to the $15 million upfront license fee received in November 2006 and this $5 million milestone, which Santarus expects to receive within the next 30 days, the company may receive up to an additional $60 million in milestone payments upon the achievement of certain regulatory and sales milestones. Santarus will also be entitled to a low double-digit royalty, subject to adjustment in certain circumstances, on net sales of any OTC products sold by Schering-Plough under the license agreement. In turn, Santarus will be obligated to pay royalties to the University of Missouri on net sales of any such OTC products. About Santarus Santarus, Inc. is a specialty pharmaceutical company focused on acquiring, developing and commercializing proprietary products that address the needs of patients treated by gastroenterologists or primary care physicians. The company currently markets ZEGERID Capsules and ZEGERID Powder for Oral Suspension. These products are proprietary formulations of omeprazole, a widely prescribed proton pump inhibitor. More information about Santarus is available on the company's Web site at www.santarus.com. Santarus cautions you that statements included in this press release that are not a description of historical facts are forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by Santarus that any of its plans will be achieved. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in Santarus' business, including, without limitation: potential disputes relating to the achievement of milestones or obligations to make milestone payments under the licensing arrangement with Schering-Plough, the success of Schering-Plough's development, sales and marketing activities and Schering-Plough's level of commitment, the potential for termination of the licensing arrangement and other risks related to the licensing arrangement; Santarus' ability to drive increased market demand for, and generate increased sales of, ZEGERID Capsules, ZEGERID Powder for Oral Suspension and any other products that may be marketed; the scope and validity of patent protection for ZEGERID products and Santarus' and Schering-Plough's ability to commercialize ZEGERID products without infringing the patent rights of others; other difficulties or delays relating to the development, testing, manufacturing and marketing of, and maintaining regulatory approvals for, ZEGERID products; Santarus' ability to obtain additional financing as needed to support its operations; and other risks detailed in Santarus' prior press releases as well as in public periodic filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and Santarus undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995. Santarus(R) and ZEGERID(R) are registered trademarks of Santarus, Inc.
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