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Microbia and Forest Laboratories Announce Linaclotide Co-Development and Co-Marketing Collaboration
Date:9/17/2007

CAMBRIDGE, Mass. and NEW YORK, Sept. 17 /PRNewswire-FirstCall/ -- Microbia, Inc. and Forest Laboratories, Inc. (NYSE: FRX), today announced that they have entered into a 50/50 partnership in the United States to co-develop and co-market Microbia's first-in-class compound linaclotide. Linaclotide is currently being investigated for the treatment of constipation-predominant irritable bowel syndrome (IBS-C), chronic constipation (CC), and other gastrointestinal disorders.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070917/NYM031LOGO )

(Logo: http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO )

Under the terms of the agreement, Forest will initially pay Microbia $70 million in licensing fees. Microbia and Forest will jointly and equally fund development and commercialization of linaclotide in the United States, sharing profits equally. Additionally, Forest will have exclusive rights in Canada and Mexico and will pay Microbia a royalty on sales in these countries. Microbia retains all rights to the product outside of North America. Total licensing and milestone payments to Microbia if linaclotide is successfully developed and commercialized in the United States could total $330 million over the term of the collaboration.

Howard Solomon, Chairman and Chief Executive Officer of Forest, said, "We are very pleased to have entered into this collaboration with Microbia. Linaclotide offers the possibility of genuine relief for the millions of patients suffering from chronic constipation and IBS-C, for which there are currently few treat
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SOURCE Forest Laboratories, Inc.; Microbia, Inc.
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