Connetics Partners With Faulding to Develop and Commercialize Relaxin in Australia.

Business Editors

PALO ALTO, Calif.--(BUSINESS WIRE)--April 12, 2000

Connetics Corporation (Nasdaq: CNCT) today announced it has signed a license agreement with F.H. Faulding & Co., Ltd., an international pharmaceutical company, for the rights to develop and commercialize recombinant human relaxin (ConXn(R)) in Australia. Under the terms of the agreement, Connetics will receive $500,000 in cash, royalties on future sales and potential milestone payments for new indications. Faulding is the fourth international partner to license rights to develop and commercialize relaxin.

"Faulding joins us as we enter into a very exciting clinical development stage for relaxin," said Thomas G. Wiggans, President and CEO of Connetics. "Our scleroderma pivotal trial results will be announced later this year, and we anticipate commencing studies in peripheral vascular disease in the near term. Although relaxin's antifibrotic properties have been well understood for years, recent studies have highlighted the hormone's angiogenic and vasodilatory properties. These data support our plans to develop the hormone as a drug candidate with multiple clinical applications. As our fourth partner for relaxin, Faulding expands our global development network and provides further validation for relaxin's significant medical and commercial potential."

"There is great interest in and awareness of relaxin in Australia, particularly in light of new data to be presented at the 3rd International Conference on Relaxin, which will be held here in October," said Dr. Ed Tweddell, CEO and Managing Director of F. H. Faulding. "We are pleased to partner with Connetics and look forward to pursuing the long-term development and commercialization of the relaxin hormone."

Relaxin is a naturally occurring hormone with a broad spectrum of biological activities. Connetics is currently testing the recombinant human form of the hormone in a pivotal trial for the treatment of diffuse scleroderma, a life-threatening disease characterized by hardening of the skin and internal organs. Results of the trial are expected in late 2000 and, based on these results, Connetics anticipates filing a BLA in 2001. Phase I/II clinical trials with relaxin are also underway for the treatment of infertility, and Connetics plans to initiate a Phase II study with relaxin for the treatment of peripheral vascular disease later in the year. Preclinical studies with relaxin are ongoing for the treatment of other serious fibrotic and vascular diseases.

Connetics has licensed the rights to develop and commercialize relaxin to Celltech Group (formerly Medeva PLC) for Europe, to Suntory Pharmaceuticals for Japan and to Paladin Labs for Canada.

About Connetics

Connetics Corporation, headquartered in Palo Alto, California, is a biopharmaceutical company focused on the development of recombinant human relaxin for multiple indications and on the development and commercialization of novel therapeutics for dermatology and other specialty medical markets. For more information about Connetics and its products, please visit Connetics' Web Site at www.connetics.com, or send e-mail to [e-mail].

This news release contains forward-looking statements and 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 and clinical trial results, and future revenues and profitability. These and other factors are discussed in more depth in Connetics' Form 10-K dated March 2, 2000 and in 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.