Andrx Enters into Agreement with Pfizer and Alza Related to Generic Versions of Glucotrol XL.

Business Editors/Health/Medical Writers

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Sept. 5, 2003

Andrx Corporation (Nasdaq:ADRX) ("Andrx" or the "Company") announced today that it has entered into agreements with Pfizer Inc. and Alza Corporation to resolve patent infringement litigation involving the Company's pending Abbreviated New Drug Application (ANDA) for bioequivalent versions of Glucotrol XL(R) (extended release glipizide) 10 mg, 5 mg and 2.5 mg extended release tablets. Pfizer and Alza have agreed to dismiss their lawsuits against Andrx and all parties have executed mutual releases of any and all related claims. The settlement is subject to Court approval. Pursuant to the agreement, Andrx will receive a royalty-bearing sublicense under relevant Alza patents, under which it will be able to manufacture and market products under its ANDA. Additionally, commencing no later than January 1, 2004, Pfizer has also agreed to supply Andrx with all or any strength of Pfizer's product, for sale by Andrx as an authorized generic under Pfizer's New Drug Application. Glucotrol XL had U.S. sales of approximately $320 million in 2002, according to IMS data.

Andrx's Chief Executive Officer, Richard J. Lane, said: "We are extremely pleased that we were able to reach these agreements with Pfizer and Alza, and that we can now advise our shareholders and consumers alike that Andrx will be marketing a full generic line of extended release glipizide tablets in the coming months."

As recently announced, the Andrx ANDA for the 10 mg strength of Glucotrol XL has received tentative FDA approval. Andrx's ANDA for the 5 mg and 2.5 mg strengths of Glucotrol XL was submitted after its ANDA for the 10 mg strength, and has not been tentatively approved by the FDA.

The Andrx ANDA product was at one time a part of the Company's ANCIRC joint venture with Watson Pharmaceuticals, Inc. Under the agreement reached with Watson, in the event Andrx commercializes its ANDA product, Watson, under certain circumstances, may be entitled to a percentage of the net sales, as therein defined, that Andrx derives from the sale of that product. The Company has also notified the FTC of the terms of this settlement.

About Andrx Corporation

Andrx Corporation develops and commercializes: bioequivalent versions of controlled-release brand name pharmaceuticals using its proprietary drug delivery technologies; bioequivalent versions of specialty, niche and immediate-release pharmaceutical products, including oral contraceptives; and brand name or proprietary controlled-release formulations of existing immediate-release or controlled-release drugs where it believes the application of Andrx's drug delivery technologies may improve the efficacy or other characteristics of those products. Andrx's distribution operations purchase primarily generic pharmaceuticals manufactured by third parties and sells them primarily to independent pharmacies, pharmacy chains which do not maintain their own central warehousing facilities, pharmacy buying groups and, to a lesser extent, physicians' offices.

Forward-looking statements (statements which are not historical facts) in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained herein or which are otherwise made by or on behalf of the Company that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "to," "plan," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the negative other variations thereof or comparable terminology are intended to identify forward-looking statements. Investors are cautioned that all forward-looking statements involve risk and uncertainties, including but not limited to, court approval of the settlement, the absence of certainty regarding the receipt of required regulatory approvals or the timing or terms of such approvals, the timing and outcome of litigation and future product launches; government regulation generally; competition; manufacturing capacities and output; commercial obstacles to the successful introduction of brand products generally; product liability claims; rising costs and availability of insurance, including product liability insurance. Andrx Corporation is also subject to other risks detailed herein or detailed from time to time in its filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company's Annual Report on Form 10-K for the year ended December 31, 2002 and Forms 10-Q for the quarters ended March 31, 2003 and June 30, 2003.

This release and additional information about Andrx Corporation is also available on the Internet at: http://www.andrx.com.