Connetics Launches Luxiq At the 57th Annual American Academy of Dermatology Conference; Company Doubles Sales Force to 40 Representatives.

PALO ALTO, Calif.--(BW HealthWire)--March 22, 1999--Connetics Corporation (NASDAQ:CNCT) announced today that it has launched Luxiq(TM) (betamethasone valerate) Foam, 0.12% at the 57th Annual American Academy of Dermatology Conference being held in New Orleans.

Luxiq is a novel dermatology product to treat corticosteroid-responsive scalp dermatoses. The launch of Luxiq, Connetics' first internally developed product, represents Connetics' commercial entrance into the dermatology market. Anticipating the product launch, Connetics recently hired 22 dermatology sales representatives bringing its total number of representatives to 40. In early March, the FDA granted marketing clearance to Luxiq. Connetics expects to ship the product to wholesalers in early April.

"We are very excited about the launch of Luxiq," said Thomas G. Wiggans, President and Chief Executive Officer, Connetics Corporation. "This is a big event for Connetics, and we are pleased to be on schedule with our launch activities. With the recent addition to our sales force, we have an outstanding team of experienced, highly motivated dermatology sales representatives. We have substantially expanded our commercialization activities and look forward to entering the dermatology market."

Luxiq is a stabilized foam formulation of betamethasone valerate, a mid-potency corticosteroid. When applied, Luxiq melts and deposits active ingredient at the disease site. This unique formulation is designed to be easier-to-apply, less messy and cosmetically more acceptable than currently marketed dermatological lotions, creams and ointments.

Scalp dermatoses affect several million American people. Among the most common of these conditions is psoriasis, a condition marked by redness and scaling of the scalp, severe itching and irritation. According to the National Psoriasis Foundation, scalp psoriasis affects more than 3.2 million Americans. Other types of dermatoses include: seborrheic dermatitis, which commonly appears as itching, redness, and scaling; and eczema, a superficial inflammation that causes severe itching and scaling. These conditions are a frequent source of physical irritation and embarrassment, and flare-up unpredictably.

The foam formulation was developed by Soltec Research Pty Ltd, a wholly-owned subsidiary, based in Australia, of international pharmaceutical and healthcare company F.H. Faulding & Co Limited. The product is marketed in the United Kingdom for the treatment of steroid responsive dermatoses of the scalp by a subsidiary of Medeva PLC under the trade name Bettamousse(TM).

Connetics Corporation, headquartered in Palo Alto, California, is focused on the acquisition, development and commercialization of marketed and late-stage products. Connetics also markets Ridaura(R) (auranofin), a treatment for rheumatoid arthritis. Several products are under development including OLUX(TM) (clobetasol propionate) for the treatment of certain dermatological indications; ConXn(R) (recombinant human relaxin-H2) for the treatment of certain rheumatologic and fibrotic diseases; and interferon gamma (through its wholly-owned subsidiary, InterMune Pharmaceuticals Inc.) for the treatment of certain congenital, infectious and other diseases.

For more information on Connetics, you may visit the Connetics Web Site at http://www.connetics.com or call us at 888-969-2628. For more information about psoriasis you may visit the National Psoriasis Foundation Web Site at http://psoriasis.org or call them at 800-723-9166 and for more information on eczema (seborrheic dermatitis) you may visit the National Eczema Association for Science and Education Web Site at http://www.eczema-assn.org or call them at 800-818-7546.

This news release contains forward-looking statements or predictions. These statements represent our judgement as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements. Potential risks and uncertainties include, without limitation, those associated with product development, clinical trials, future revenues and profitability, and obtaining marketing approval. These and other factors are discussed in more depth in Connetics' Form 10-K for the fiscal year ended December 31, 1997 under the heading "Additional Factors That May Affect Future Results" and the Company's other filings with the SEC. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in the projections or forward-looking statements.