Meda agrees to acquire Elidel

Meda agrees to acquire Elidel

Meda has reached an agreement with Novartis to acquire global rights for
Elidel (pimecrolimus 1% cream). Elidel is a patent protected, specialty
focused product for the treatment of atopic dermatitis (AD).

AD is a chronically relapsing inflammatory skin disease and the skin
barrier plays an essential role in protection against AD flares. Elidel
is the first non-steroidal topical cream treatment specifically
developed for the treatment of AD.

Elidel is approved and sold in more than 90 countries worldwide. The
global sales level for the product is about 120 MUSD with an attractive
profitability. The majority of sales is generated in the US, Europe and
Meda's emerging markets. The purchase price is 420 MUSD (approx.
2 650 MSEK) equivalent to a multiple of about 5 times EBITDA.

“I'm glad that we could reach this deal with Novartis. Elidel
strengthens our position in dermatology and we expect valuable market
synergies”, said Anders Lönner, CEO Meda.

The closing of the acquisition is dependent on antitrust approvals,
which are expected during the second quarter 2011, and other customary
closing conditions. Meda will use a combination of its own marketing
platform and third parties for the commercialization of Elidel.

We have also entered into a commitment in principle to license Elidel in
North America to Valeant International (Barbados) SRL, a subsidiary of
Valeant Pharmaceuticals International, Inc. Terms of the license will be
disclosed after the parties have executed a definitive agreement“,
continued Anders Lönner.

To date, Elidel has been studied in more than 60,000 patients.
Preliminary data also suggests that Elidel can be effective in the
treatment of other dermatological conditions, an opportunity Meda will
pursue.

Elidel is protected by several patents covering substance, formulation
and manufacturing processes until 2025.

About Elidel

Elidel was approved in the US in 2001 and in the European Union in 2002
as well as in many other countries. Depending on the country, Elidel is
indicated as a second-line therapy for the short and long-term
management of the signs and symptoms of mild to moderate atopic
dermatitis in adults and children two years of age and older.

For further inquiries, please contact:

Anders Larnholt, Vice President Corporate Development & IR ph: 46
709-458 878