Medicis Closes License of ORAPRED to BioMarin with Option to Purchase Business Editors/Health/Medical Writers SCOTTSDALE, Ariz.--(BUSINESS WIRE)--May 18, 2004--Medicis (NYSE:MRX) today announced it has closed its previously announced asset purchase agreement and license agreement, and signed a securities purchase agreement with BioMarin Pharmaceutical Inc. ("BioMarin") (Nasdaq and SWX: BMRN). The asset purchase agreement involves BioMarin's purchase of assets related to ORAPRED(R), including assets concerning the Ascent Pediatrics field sales force. The license agreement grants BioMarin the exclusive worldwide rights to ORAPRED(R) (prednisolone sodium phosphate), including proprietary taste-masking technologies and related development technologies. ORAPRED(R), which utilizes a proprietary taste-masking system, is the leading branded liquid corticosteroid for the treatment of pediatric asthma. The securities purchase agreement grants BioMarin the option to purchase all outstanding shares of common stock of Ascent Pediatrics, Inc. based on certain conditions. ORAPRED(R) and related pediatric intellectual property is owned by Ascent Pediatrics, Inc., a wholly owned subsidiary of Medicis. BioMarin will make license payments to Ascent of approximately $93 million payable over a five-year period as follows: $10 million has been received at the close; approximately $12.5 million per quarter for four quarters beginning in July 2004; approximately $2.5 million per quarter for the subsequent four quarters beginning in July 2005; approximately $2 million per quarter for the subsequent eight quarters beginning in July 2006; and approximately $1.75 million per quarter for the last four quarters of the five-year period beginning in July 2008. Additionally, subject to the conditions contained in the securities purchase agreement, BioMarin will have the option to purchase all outstanding shares of Ascent Pediatrics, Inc. for approximately $82 million. Upon closing of the asset purchase agreement and the license agreement, BioMarin will be responsible for all marketing and promotional efforts regarding the sale of ORAPRED(R). BioMarin will offer employment to the Ascent Pediatrics field sales force. As a result, Medicis will no longer deploy a sales force to call on pediatricians. Medicis will have responsibility for the manufacture and delivery of finished goods inventory to BioMarin, and BioMarin will be responsible for paying Medicis for future finished goods inventory delivered by Medicis through June 30, 2005. During the term of the license agreement, Medicis will maintain ownership of the intellectual property and, consequently, will continue to amortize the related intangibles. Payments received from BioMarin under the license agreement for continuing obligations will be treated as contract revenue on Medicis' income statement. About BioMarin Headquartered in Novato, California, BioMarin Pharmaceutical Inc. develops innovative biopharmaceutical products and commercializes therapeutics for serious pediatric diseases. For additional information about BioMarin, please visit the Company's website at www.BMRN.com. About Medicis Medicis is the leading independent specialty pharmaceutical company in the United States focusing primarily on the treatment of dermatological and podiatric conditions and aesthetics medicine. Medicis has leading branded prescription products in a number of therapeutic categories, including acne, eczema, fungal infections, hyperpigmentation, photoaging, psoriasis, rosacea, seborrheic dermatitis and skin and skin-structure infections. The Company's products have earned wide acceptance by both physicians and patients due to their clinical effectiveness, high quality and cosmetic elegance. The Company's products include the prescription brands RESTYLANE(R), DYNACIN(R) (minocycline HCl), LOPROX(R) (ciclopirox), LUSTRA(R) (hydroquinone), LUSTRA-AF(R) (hydroquinone) with sunscreen, ALUSTRA(R) (hydroquinone) with retinol, OMNICEF(R) (cefdinir), PLEXION(R) Cleanser (sodium sulfacetamide/sulfur), PLEXION TS(R) (sodium sulfacetamide/sulfur), PLEXION SCT(R) (sodium sulfacetamide/sulfur), TRIAZ(R) (benzoyl peroxide), LIDEX(R) (fluocinonide), and SYNALAR(R) (fluocinolone acetonide), the over-the-counter brand ESOTERICA(R), and BUPHENYL(R) (sodium phenylbutyrate), a prescription product indicated in the treatment of Urea Cycle Disorder. For more information about Medicis, please visit the Company's website at www.medicis.com. Except for historical information, this press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act. All statements included in this press release that address activities, events or developments that Medicis expects, believes or anticipates will or may occur in the future are forward-looking statements. This includes earnings estimates, future financial performance and other matters. These statements are based on certain assumptions made by Medicis based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Medicis. Any such projections or statements include the current views of Medicis with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such results will be achieved. Medicis cannot validate its assumptions of the full impact on its business of the approval of competitive generic versions of its core brands, or any future competitive product approvals that may affect its brands. Also, there are a number of additional important factors that could cause actual results to differ materially from those projected, including the anticipated size of the markets, the availability of product supply, the receipt of required regulatory approvals, the ability to realize anticipated synergies and benefits of the Q-Med transaction, the risks and uncertainties normally incident to the pharmaceutical industry, dependence on sales of key products, the uncertainty of future financial results and fluctuations in operating results, dependence on Medicis' strategy including the uncertainty of license payments and/or other payments due from third parties, the timing and success of new product development by Medicis or third parties, product introductions and other risks described from time to time in Medicis' SEC filings including its Annual Report on Form 10-K for the year ended June 30, 2003. There can be no assurance as to when or if any of the holders of the Notes will have the right to convert or if the Notes will be converted, and what impact the increase in the number of shares outstanding will have on its results of operations. Forward-looking statements represent the judgment of Medicis' management as of the date of this release, and Medicis disclaims any intent or obligation to update any forward-looking statements. NOTE: Full prescribing information for any Medicis prescription product is available by contacting the Company. OMNICEF(R) is a registered trademark of Abbott Laboratories, Inc. under a license from Fujisawa Pharmaceutical Co., Ltd. ORAPRED(R) is a registered trademark of Ascent Pediatrics, Inc., a wholly owned subsidiary of Medicis Pharmaceutical Corporation. RESTYLANE(R) is a registered trademark of HA North American Sales AB, a subsidiary of Medicis Pharmaceutical Corporation. All other marks (or brands) and names are the property of Medicis or its Affiliates. CONTACT: Medicis, Scottsdale Kara Stancell, 602-808-3854