MGI PHARMA to Promote Two Products to Rheumatologists for Connetics Corporation.

PALO ALTO, Calif.--(BW HealthWire)--March 25, 1999--Connetics Corporation (Nasdaq:CNCT) and MGI PHARMA, Inc. (Nasdaq:MOGN) announced today that they have entered into promotion agreements for Connetics' Ridaura(R) and Luxiq(TM) products.

Under the terms of the agreements, MGI PHARMA will promote Ridaura (auranofin) and Luxiq (betamethasone valerate) Foam, 0.12% to the rheumatology market in the United States in exchange for promotional fees. This arrangement takes advantage of MGI PHARMA's specialty sales force that calls on rheumatologists and oncologists in the United States, and allows Connetics to focus its attention on the dermatology marketplace.

"This agreement provides substantial additional promotional power for our products," said Thomas G. Wiggans, President and Chief Executive Officer, Connetics Corporation. "By utilizing MGI PHARMA's sales force, we will be able to maintain visibility in rheumatology and bring even greater focus to Luxiq, our exciting new dermatology product. MGI PHARMA's experienced sales organization has demonstrated its capabilities with the successful promotion of MGI PHARMA's other products."

Ridaura is an oral formulation of a gold salt (auranofin). A disease-modifying antirheumatic drug (DMARD), Ridaura has been shown to slow the progression of rheumatoid arthritis and is believed to slow joint destruction. The drug is currently indicated for adults with active rheumatoid arthritis who are not responsive to, or are intolerant of, treatment with non-steroidal anti-inflammatory drugs (NSAIDs).

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. The U.S. Food and Drug Administration granted marketing clearance for Luxiq in March 1999.

Luxiq is indicated for corticosteroid-responsive scalp dermatoses, which 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.

Connetics Corporation, headquartered in Palo Alto, California, is focused on the acquisition, development and commercialization of marketed and late-stage products. Connetics markets Ridaura(R), a treatment for rheumatoid arthritis and Luxiq(TM) for the treatment of scalp psoriasis.

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.

MGI PHARMA is a pharmaceutical company, headquartered in Minnetonka, Minnesota, that acquires, develops and markets innovative products for niche medical markets of unmet medical need. The Company currently markets Salagen(R) Tablets (pilocarpine hydrochloride), INFeD(R) (iron dextran injection 50mg/ml) and Didronel(R) I.V. Infusion (etidronate disodium) in the United States.

For more information on Connetics, you may visit Connetics' Web Site at www.connetics.com or call us at 888/969-2628. For more information on MGI PHARMA, you may visit the MGI PHARMA Web Site at www.mgipharma.com or call them at 612/939-4666.

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 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.