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Watson Announces Agreement to Acquire U.S. Rights to Columbia Laboratories' CRINONE(R) Progesterone Gel Product Line
Date:3/4/2010

condary amenorrhea.  The two companies will collaborate in the ongoing Phase 3 development program toward a new indication for these products for the prevention of preterm birth in women with a short cervix, as well as a global development program for second-generation products for this indication and infertility. Watson will also acquire 11.2 million shares of Columbia common stock.

The acquisition is subject to customary closing conditions, including the approval of Columbia's stockholders.  The closing of the acquisition is expected to occur in the second quarter of 2010.  After the close of the acquisition, Watson intends to immediately begin marketing CRINONE® and PROCHIEVE® in the U.S. to reproductive endocrinologists and Ob/Gyns through the existing Brand Sales Forces.  

Under the terms of the agreement, Watson will provide Columbia with an initial $47 million payment and will receive exclusive progesterone gel product rights in the U.S. and 11.2 million newly issued shares of Columbia common stock.  Watson will also have the right to designate a member of Columbia's board of directors.  Additional contingent payments related to the successful completion of clinical development milestones, receipt of regulatory approvals and product launches could total approximately up to $45.5 million'/>"/>

SOURCE Watson Pharmaceuticals, Inc.
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