Alliance Pharmaceutical Corp. Announces Imavist Sales, Marketing, and Distribution Partnership.

Business Editors and Health/Medical Writers

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SAN DIEGO--(BW HealthWire)--March 1, 2002

Alliance Pharmaceutical Corp. (NASDAQ:ALLP)(Nasdaq:ALLPD) announced today that it has entered into a partnership with Schering AG, Germany and Cardinal Health Inc. (NYSE:CAH) for the marketing of Imavist(TM) (perflexane lipid microspheres), an ultrasound contrast agent.

As announced today, the U.S. Food and Drug Administration (FDA) has reviewed a New Drug Application for the use of Imavist in echocardiography, or ultrasound imaging of the heart, and found it to be approvable upon submission of additional information related primarily to product labeling. Preparations are underway for an anticipated product launch during the second quarter of 2002, pending FDA approval.

Schering licensed worldwide marketing rights for Imavist from Alliance in September 1997. The companies have agreed to modify this agreement to allow Alliance to increase its participation in the marketing of the product. Under the terms of the modified agreement, Alliance will have exclusive marketing rights to Imavist for cardiology indications in the U.S. for five years, and Schering will receive a royalty on product sales. Schering retains marketing rights for other indications in the U.S. and all indications in the rest of the world, subject to Alliance's option to obtain additional indications and territories. Under certain circumstances, Schering would co-market the product at the end of five years.

Concurrently, Alliance has entered into a five-year exclusive agreement with Cardinal Health Inc., the largest provider of products and services to the health-care industry, to assist in the marketing of Imavist. Under the agreement, Cardinal Health will perform certain packaging, distribution, and sales services for Alliance under a fee-for-service arrangement. Cardinal will extend to Alliance a revolving line of credit, which will be repaid from product revenues.

The agreement with Cardinal Health involves several of its member companies, including Cardinal Health Sales and Marketing Services (CHSMS), which will hire, train, and deploy a dedicated Alliance sales force and ultrasound medical liaison specialists. In addition, Cardinal Health's PCI Services company will provide packaging, and CORD Logistics will provide customer service, invoicing, and accounts receivable services. Alliance will manufacture Imavist and will be responsible for additional clinical development to expand the potential uses for the product.

"Cardinal Health is pleased to partner with Alliance to bring Imavist to the market," said George L. Fotiades, president and chief operating officer of the Cardinal Health Pharmaceutical Technologies and Services Segment. "Cardinal Health holds the number one or two position in nearly every market we serve, and we are looking forward to working with Alliance and becoming an active participant in the ultrasound imaging field. We believe that co-marketing agreements such as this enable emerging biotechnology firms to concentrate on the marketing of their products with dedicated field personnel while being supported by the packaging, shipping, distribution, and customer service infrastructure that Cardinal Health already has in place."

"We are excited about the opportunity to increase our direct involvement in the sales and marketing of Imavist," said Duane J. Roth, chairman & CEO of Alliance. "We have entered into a unique partnership that enables Alliance to have a direct sales force that will focus solely on Imavist. Alliance will also benefit from the funding provided by Cardinal Health and the capabilities and expertise of their large organization.

"The prominence of contrast ultrasound imaging is increasing due to several factors," Roth noted. "Importantly, several ultrasound equipment manufacturers such as Siemens Medical Solutions, Philips Medical Systems, and GE Medical Systems have introduced new contrast-specific ultrasound technology that provides even greater opportunities for the use of contrast agents. In addition, reimbursement is now available for ultrasound imaging agents. We believe that our agreement with Cardinal Health affords Alliance an excellent means to build on this momentum and to improve our financial remuneration from the potential sales of the product.

"Imavist is intended to improve visualization of the endocardial border (walls) of the heart, which may enable better detection of cardiac abnormalities, and may help patients receive proper treatment quickly without more extensive and expensive testing," Roth said. "Approximately 20% of the more than 17 million ultrasound examinations of the heart performed in our country each year are considered suboptimal and may not provide adequate image quality for an accurate diagnosis. Heart disease claims one death every 30 seconds in the U.S., and improvements in diagnosis could have an important impact for these patients."

In addition to seeking approval for the use of Imavist in conjunction with cardiac imaging, Alliance intends to pursue radiology indications such as ultrasound imaging of the prostate and liver. A clinical study designed to determine whether Imavist can improve detection of prostate cancer is currently underway at the Thomas Jefferson University Prostate Center in Philadelphia. The study will involve 300 adult men with suspected prostate cancer, and is being funded by the U.S. Department of Defense.

Alliance Pharmaceutical Corp. is developing therapeutic and diagnostic products based on its perfluorochemical and surfactant technologies. Alliance's products are intended primarily for use during acute care situations, including surgical, cardiology, and respiratory applications. Oxygent(TM) (perflubron emulsion), an intravenous oxygen carrier, is being developed in the United States, Canada, and Europe in conjunction with Baxter Healthcare Corp. Additional information about the company is available on Alliance's Web site at www.allp.com.

Cardinal Health Inc. (www.cardinal.com) is a leading provider of products and services supporting the health-care industry. Cardinal companies develop, manufacture, package and market products for patient care; develop drug-delivery technologies; distribute pharmaceuticals, medical-surgical and laboratory supplies; and offer consulting and other services that improve quality and efficiency in health care. The company employs more than 49,000 people on five continents and produces annual revenues of more than $40 billion.

Except for historical information, the matters set forth in this release are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth herein, including the availability of funding for development, the uncertainties associated with the conduct of preclinical or clinical studies and the timing or ability to investigate scientific data. Alliance refers you to cautionary information contained in documents the company files with the Securities and Exchange Commission from time to time, including the last Form 10-K and Form 10-Q, and those risk factors set forth in the most recent registration statement on Form S-3 (File No. 333-47032) and Form S-4 (File No. 333-49676). Alliance is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.