Axcan Pharma Signs an Agreement to Distribute Protectaid in Hong Kong and Macau.

MONTREAL--(BUSINESS WIRE)--Dec. 4, 1996--AXCAN(TSE;ME AXP) Axcan Pharma Inc. announced today that it has signed an agreement to distribute its Protectaid(R) contraceptive sponge in Hong Kong and Macau through C and L Pharmaceuticals of Kowloon, Hong Kong. "Hong Kong and Macau have a population of some seven million people. This first agreement will open the door to the Asian market for us. We are currently involved in negotiations that should lead to the signing of similar agreements in several other countries," said Yvon Gosselin, Axcan Pharma's president and CEO.

Axcan will supply Protectaid(R) for the entire duration of the agreement with C and L Pharmaceuticals. The agreement is valid for five years and is automatically renewable for another five years. Shipments will begin as soon as product labelling in Chinese is available. The first shipment is anticipated for the second quarter of 1997.

Protectaid(R) may prevent STDs

The Protectaid(R) sponge is remarkable for its safety profile. Its innovation lies in the combination of three active ingredients rather than just one, which, in combination, can be used in lower concentrations to reduce irritation of the vaginal mucosa.

The Protectaid(R) sponge also has the potential to directly prevent STDs, including HIV. Although this has still to be confirmed in clinical studies, it is already well established that at least two of the active ingredients-nonoxynol-9 (NX9) and benzalkonium chloride (BKC)-have strong virucidal, fungicidal and bactericidal activities. In vitro studies conducted by Axcan Ltd. demonstrated that F-5 Gel(R) destroys a large number of pathogenic micro- organisms including HIV, chlamydia and the bacteria responsible for gonorrhea. "The new Protectaid(R) sponge is a nonsystemic method of contraception that is safe, effective and nonirritating," said Dr. Normand Ayotte, gynecologist with the Shawinigan Hospital, at the Canadian launch of Protectaid(R) in February 1996. Dr. Ayotte participated in clinical studies on Protectaid(R). "Studies are to begin in order to determine if this product can also help prevent sexually transmitted diseases," he added.

Axcan Pharma specializes in the field of gastro-enterology, and is also active in the areas of contraception, the prevention of sexually transmitted diseases and hemodialysis. Founded in 1983, the company now employs some 100 people in Canada. Its head office is in Mont-St-Hilaire on Montreal's South Shore, with subsidiaries and offices in Laval, just north of Montreal, Calgary and in Plattsburg, New York.

CONTACT: Axcan Pharma Inc.

Bertrand Bolduc, 514/467-5138

514/464-9979 (FAX)

E-Mail: [e-mail]