Retigabine agreement can give Meda significant royalty income

Retigabine agreement can give Meda significant royalty income 

The pharmaceutical company GlaxoSmithKline has signed an exclusive worldwide
collaboration agreement with Meda's partner Valeant Pharmaceuticals for the
Retigabine substance. Meda is entitled to receive significant royalties and
certain milestone payments.

Retigabine comprises a new way of affecting potassium channels in the central
nervous system. It has been documented to treat epilepsy. According to Valeant,
the registration application is expected to be submitted early 2009 in both the
U.S. and in Europe. Broadened indications within the pain area are being
pursued, such as neuropathic pain. 

“If the sales expectations are realised, this will result in significant annual
revenues and profits for a long time which is very positive for Meda's
shareholders”, said Anders Lönner, CEO Meda. 
The sales potential for the first indication (epilepsy) is estimated to be 10
billion SEK on a yearly and worldwide basis. Meda is entitled to receive
royalties of 7% on market sales in the U.S., which account for about 60% of the
total world market. In addition, the product will be co-commercialised with
GlaxoSmithKline and Valeant in the U.S. In Europe, the royalty rate can vary
from 6% to 8% depending on sales and profitability. In other world markets, the
royalty rate is 3%. Meda is also entitled to receive up to a quarter of a
billion SEK at certain milestone events that are not linked to sales levels. 


For more information, please contact:

Anders Larnholt, Vice President Investor Relations, tel. +46 709 458 878
email: anders.larnholt@meda.se

MEDA AB (publ) is an international specialty pharma company that concentrates on
marketing and market-adapted product development. Acquisitions and long-term
partnerships are fundamental factors that drive the company's strategy. Meda is
represented with own organisations in 26 countries and with more than 1 500
employees within marketing and sales. Meda's products are sold in approximately
120 countries world-wide. The Meda share is listed under Large Cap on the OMX
Nordic Stock Exchange. Find out more, visit www.meda.se.