Connetics Receives Milestone Payment for Relaxin Program.

PALO ALTO, Calif.--(BW HealthWire)--May 14, 1999--

Connetics Corporation (Nasdaq:CNCT) announced today that it received a milestone payment of $878,000 from Suntory Pharmaceuticals.

The payment was made because Connetics has initiated a pivotal trial of ConXn(R) (human recombinant relaxin) for the treatment of scleroderma. Connetics entered its collaboration with Suntory Pharmaceuticals in April 1998 for the development and commercialization of ConXn in Japan. The pivotal trial was initiated in February 1999.

"We are pleased to receive this milestone payment and to have the continued support of Suntory," stated Tom Wiggans, president and chief executive officer of Connetics. "Our pivotal scleroderma trial is now well underway, and we are making progress on expanding the clinical development of relaxin for new indications. We are delighted with the strong commitment our two partners have to making relaxin a success."

Relaxin is a natural protein that has been demonstrated to inhibit excessive connective tissue build-up by decreasing collagen production and enhancing collagen breakdown. Connetics is conducting a pivotal trial of relaxin evaluating its effectiveness as a treatment for scleroderma and has conducted numerous preclinical studies with relaxin for organ fibrosis and infertility. Connetics has partnerships with Medeva PLC and Suntory Pharmaceuticals for the development and commercialization of relaxin.

Connetics Corporation, headquartered in Palo Alto, is focused on the acquisition, development and commercialization of marketed and late-stage products. Connetics markets Luxiq(TM) (betamethasone valerate) Foam, 0.12%, for the treatment of scalp dermatoses, Ridaura(R), a treatment for rheumatoid arthritis, and Actimmune(R) for the treatment of chronic granulomatous disease. Products under development include OLUX(TM) (clobetasol propionate) for the treatment of certain dermatological indications.

For more information on Connetics, you may visit Connetics' Web Site at www.connetics.com or call us at 888/969-2628.

This news release may contain 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 Dec. 31, 1998 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.