Medicis Pharmaceutical (MRX)

[Investorman]

Medicis Announces License and Development Agreement with Dow Pharmaceutical Sciences
September 26, 2002 4:13:00 PM ET


SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Sept. 26, 2002--Medicis MRX today announced it signed an exclusive license and development agreement with Dow Pharmaceutical Sciences, Inc. ("Dow") to develop and commercialize an important, patented dermatologic product. Specific details regarding the nature of the development project were not disclosed.

Terms of the agreement include an initial non-refundable payment, or special charge, of $5.4 million payable to Dow. Two additional potential payments totaling $10.9 million are due Dow upon successful completion of various development milestones. A payment of $8.8 million will be due Dow upon the first successful clinical milestone, which could occur as early as the second half of fiscal 2003. A payment of $2.1 million will be due Dow upon successful completion of the final specified development milestone, which could occur as early as the second half of fiscal 2004. An additional payment of $1 million will be due Dow upon FDA approval.

"We are pleased to announce this license and development agreement with Dow Pharmaceutical Sciences," said Jonah Shacknai, chairman and chief executive officer of Medicis. "Dow has a proven track record of developing innovative dermatologic specialties, utilizing their clinical expertise to deliver numerous successful products to the market. We believe this sophisticated late-stage development project will supplement our existing rich pipeline of products."

"This agreement with Medicis, a leader in the field of dermatology, validates our expertise in the development of dermatological products," said Dr. Bhaskar Chaudhuri, chief executive officer of Dow Pharmaceutical Sciences. "We welcome the opportunity to work with such a well respected partner."