Axcan Pharma Inc. Reaches Agreement to Purchase Jouveinal's Products.

MONTREAL--(BUSINESS WIRE)--Sept. 3, 1997--(ME,TSE:AXP.) Axcan Pharma Inc. announces that it completed a transaction with Parke-Davis, a division of Warner-Lambert Company, for the acquisition by Axcan of all gastroenterology products previously marketed by Jouveinal in Canada.

These products include MODULON(R),LANSOYL(R) and COPTIN(R). In addition, Axcan will immediately assume distribution of URSOFALK(R) in Canada instead of November 30th as previously announced.

As part of this agreement, Axcan Pharma Inc. also obtains the marketing rights to Scandipharm's cystic fibrosis (CF) product line, previously marketed by Jouveinal in Canada. This product line includes ULTRASE(R), ADEKs(R), FLUTTER(R), SCANDISHAKE(R) and CF INDICATOR(R).

"These products fit perfectly into Axcan's portfolio and will allow Axcan to double its gastrointestinal pharmaceutical sales as well as double its overall sales base if one includes the recent acquisition of the US rights to VIOKASE(R) from American Home Products Corporation," said Mr. Leon F. Gosselin, Axcan's President and CEO. "Consequently, Axcan will increase its sales and marketing presence in the Canadian market," he added.

MODULON(R) (trimebutine), is a lower gastrointestinal tract motility regulator used in the treatment of irritable bowel syndrome (IBS). IBS is characterised by symptoms such as lower abdominal pain or discomfort, bloating, flatulence, nausea, headache, fatigue, depression, anxiety, and difficulty in concentration. IBS affects about 20 percent of all people at any one time. LANSOYL(R) is a flavoured mineral oil jelly used as an intestinal lubricant in the treatment of occasional transient constipation. This product is particularly useful for infants. COPTIN(R) (sulfadiazine-trimethoprime) is a combination of antibiotics used to treat acute, chronic and recurrent urinary tract infections. URSOFALK(R) (ursodiol) is the trademark used in Canada for URSO(R). This product was originally licensed to Jouveinal in 1984 and was successfully launched in 1990 for the dissolution of gallstones. In 1996, the product was approved for the treatment of cholestatic liver diseases including Primary Biliary Cirrhosis (PBC).

The ULTRASE(R) products are enteric-coated pancrelipase formulations used in the treatment of exocrine pancreatic insufficiency as often encountered in cystic fibrosis. ADEKs(R) is a multivitamin preparation specially designed for the cystic fibrosis patient. FLUTTER(R) is a device which is used to facilitate the removal of mucus from the lungs of patients with cystic fribosis, chronic obstructive pulmonary diseases, bronchitis and other mucus producing respiratory conditions. SCANDISHAKE(R) is a high calorie formulation for weight gain and CF INDICATOR(R) is a rapid screening test for cystic fibrosis.

Parke-Davis, a division of Warner-Lambert Company (NYSE: WLA), is devoted to discovering, developing, manufacturing and marketing quality pharmaceutical products. Its central research focus is on heart disease, diabetes, infectious diseases, disorders of the central nervous system and women's health care. Warner-Lambert is a worldwide company employing approximately 40,000 people, and along with Parke-Davis is headquartered in Morris Plains, N.J., U.S.A.

Scandipharm(R) is a privately held U.S. company dedicated to reach out and meet the special, often overlooked needs of chronically ill people. Scandipharm products improve the quality of care while reducing the cost of treatment for patients with special needs. Currently, its products and services are available for cystic fibrosis and segments of other niche markets including chronic obstructive pulmonary disease(s) (COPDs), cancer and HIV/AIDS.

Axcan Pharma is a Canadian pharmaceutical company involved in the development and distribution of pharmaceutical products, mainly in the field of gastroenterology. The Company has nearly 100 employees at its head office in Mont-St-Hilaire and its laboratory in Laval (Quebec). Axcan is one of the ten largest public health- care companies in Canada and is traded on the Montreal and Toronto Stock Exchanges under the symbol AXP. Prior to the transaction announced today, the main products of the Company were:

- SALOFALK(R), a broad line of 5-ASA dosage forms for the treatment of ulcerative colitis available in tablets, enemas and suppositories as well as CORTENEMAO, a corticosteroid enema for the same indication.

- URSO(R) and URSOFALK(R), ursodiol formulations used in the treatment of cholestatic liver diseases such as Primary Biliary Cirrhosis as well as the dissolution of radiolucent cholesterol gallstones.

- VIOKASE(R), a pancreatic enzyme formulation used in the treatment of exocrine pancreatic insufficiency as often encountered in cystic fibrosis and chronic pancreatitis.

- AMPHOJEL(R) and MUCAINE(R), a line of antacids for the treatment of dyspepsia and heartburn.

- HELISAL(TM), a diagnostic test for the detection of IgG antibodies to Helicobacter pylori, the bacteria linked to gastroduodenal ulcers and gastric cancer.

Axcan is also active in contraception and in the prevention of sexually transmitted diseases with PROTECTAID(R), a contraceptive sponge. Axcan Pharma has a wholly-owned subsidiary, Biopharm Laboratories Inc., which provides laboratory and analytical services to the pharmaceutical, dairy and food industries. Biopharm Laboratories Inc. is ISO 9002 certified. In December 1995, Axcan Pharma Inc. and Althin Medical of Sweden formed a Canadian joint venture, Althin Biopharm Inc. which distributes a broad range of products in the field of hemodialysis.

CONTACT: Axcan Pharma Inc., Montreal

Bertrand Bolduc, 514/467-5138

514/464-9979 (FAX)

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