Rho Ventures: 2004 News

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Advancis Pharmaceutical, Par Pharmaceutical Finalize Amoxicillin PULSYS Agreement

Par to Fund Development and Co-promote Company's First Anticipated Pulsatile Antibiotic Product; Product Launch Could Be as Soon as 2006

GERMANTOWN, MD
June 2, 2004

Advancis Pharmaceutical Corporation (NASDAQ:AVNC), a pharmaceutical company focused on developing and commercializing novel anti-infective products, today announced it signed a definitive agreement with Par Pharmaceutical, Inc. (Par), a subsidiary of Par Pharmaceutical Companies, Inc. (NYSE: PRX), as its strategic partner to develop and commercialize its most advanced pulsatile product candidate, Amoxicillin PULSYS. The product utilizes Advancis' proprietary once-a-day pulsatile delivery technology called PULSYS™, and is expected to be commercially available by as early as 2006. This agreement finalizes the letter of intent signed and announced in March.

Under the terms of the agreement, Advancis received an upfront license payment of $5 million and a commitment from Par to fund further development expenses in exchange for granting Par the exclusive right to sell Amoxicillin PULSYS and the co-exclusive right to market the product. Advancis will be responsible for the development and manufacturing programs, and the two parties will jointly fund and run the marketing and sales program and share operating profits from product sales on an equal basis.

Amoxicillin PULSYS is designed to deliver amoxicillin at lower dosages over a shorter duration of therapy in a once-daily formulation. Advancis' preclinical studies demonstrated improved bactericidal effect for amoxicillin when delivered in a pulsatile fashion versus standard dosing regimens, even against resistant bacteria. Amoxicillin is one of the most widely prescribed drugs in the world, with over 60 million prescriptions written annually and over one billion patient exposures.

About Par Pharmaceutical:
Par Pharmaceutical Companies, Inc. develops, manufactures and markets generic pharmaceuticals through its principal subsidiary, Par Pharmaceutical, Inc. The company is also developing a line of proprietary specialty pharmaceuticals and expects to market the first of these in 2005. Through its FineTech subsidiary, Par also develops and utilizes synthetic chemical processes to design and develop intermediate ingredients used in the production of finished products for the pharmaceutical industry. Par currently manufactures and distributes more than 170 products representing various dosage strengths of 73 drugs. For press release and other company information, visit www.parpharm.com.

About Advancis Pharmaceutical:
Advancis Pharmaceutical Corp. (Nasdaq: AVNC) is a pharmaceutical company focused on the development and commercialization of pulsatile drug products that fulfill substantial unmet medical needs in the treatment of infectious disease. The Company is developing a broad portfolio of anti-infective drugs based on its novel biological finding that bacteria exposed to antibiotics in front-loaded staccato bursts, or "pulses," are killed more efficiently and effectively than those under standard treatment regimens. Based on this finding, Advancis has developed a proprietary, once-a-day pulsatile delivery technology called PULSYS™. By examining the resistance patterns of bacteria and applying its delivery technologies, Advancis has the potential to redefine infectious disease therapy and significantly improve drug efficacy, shorten length of therapy, and reduce drug resistance versus currently available antibacterial products. For more on Advancis, please visit www.advancispharm.com.

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements are based on Advancis' current expectations and assumptions. These statements are not guarantees of future performance and are subject to a number of risks and uncertainties that would cause actual results to differ materially from those anticipated. The words, "believe," "expect," "intend," "anticipate," and variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward- looking. The actual results realized by Advancis could differ materially from these forward-looking statements, depending in particular upon the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. These include, without limitation, risks and uncertainties relating to the Company's financial results and the ability of the Company to (1) reach profitability, (2) prove that the preliminary findings for its product candidates are valid, (3) receive required regulatory approvals, (4) successfully conduct clinical trials in a timely manner, (5) establish its competitive position for its products, (6) develop and commercialize products that are superior to existing or newly developed competitor products, (7) develop products without any defects, (8) have sufficient capital resources to fund its operations, (9) protect its intellectual property rights and patents, (10) implement its sales and marketing strategy, (11) successfully attract and retain collaborative partners and secure their performance under collaborative agreements , and (12) retain its senior management and other personnel. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today's date. Advancis undertakes no obligation to update or revise the information in this announcement, whether as a result of new information, future events or circumstances or otherwise.