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Watson and Richter Announce Exclusive License Agreement for Esmya™
Date:12/16/2010

MORRISTOWN, N.J., and BUDAPEST, HUNGARY, Dec. 16, 2010 /PRNewswire-FirstCall/ -- Watson Pharmaceuticals, Inc. (NYSE: WPI) ("Watson") and Gedeon Richter Plc ("Richter") today announced that Watson's subsidiary, Watson Laboratories, Inc. has entered into an exclusive licensing agreement with PregLem, S.A., ("Preglem") the wholly owned subsidiary of Richter, to develop and market Esmya™ (ulipristal acetate) in the U.S. and Canada.  In European studies, Esmya™ has been shown to be an effective and safe treatment for uterine fibroids (myoma), a condition that affects millions of women worldwide. The product is currently in late stage development in Europe and Watson expects to initiate U.S. Phase III clinical studies in 2011.

Under terms of the agreement, Watson will pay PregLem a $17 million license fee and will pay royalties based on sales in the U.S. and Canada. Watson will make additional payments based on the achievement of certain regulatory milestones. The companies will also collaborate on additional Esmya™ formulations, jointly sharing the development costs.

"Esmya™ represents a significant strategic addition to our portfolio of women's health products and is potentially the first effective treatment for uterine fibroids in more than 20 years," said Paul Bisaro, Watson's Chief Executive Officer.  "The agreement enables us to maximize our expertise in developing, registering and commercializing significant therapeutic advances in diseases treated by OB/GYNs.  It also forms the foundation for us to further develop a franchise of products and indications in the uterine fibroid category.  We look forward to further expanding our relationship with PregLem and Gedeon Richter for future opportunities between our companies."

"I am pleased with the agreement concluded with Watson, as their specialty knowledge and marketing
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SOURCE Watson Pharmaceuticals, Inc.
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