Schwarz Pharma Obtains Marketing and Distribution Rights for Verelan and Verelan PM From Elan.

MEQUON, Wis./DUBLIN, Ireland--(BUSINESS WIRE)--Oct. 6, 1998-- Schwarz Pharma, Inc. ("Schwarz") (ADR:SWPHY) and Elan Corporation, plc ("Elan") (NYSE:ELN) announced today that Schwarz has obtained exclusive U.S. marketing and distribution rights for Verelan and Verelan PM from Elan following Elan's recent announcement of the reacquisition of the Verelan franchise from Wyeth-Ayerst Laboratories, a division of American Home Products. The commercial terms of the agreement were not disclosed.

Verelan, Elan's SODAS (Spheroidal Oral Drug Absorption System) formulation of the calcium channel blocker verapamil, is a well-recognized brand in the treatment of essential hypertension. Wyeth-Ayerst Laboratories reported sales of the product to be approximately $90 million in 1997. Verelan PM, a nighttime formulation of verapamil utilizing Elan's CODAS (Chronotherapeutic Oral Drug Absorption System), is currently under review by the FDA.

Under the terms of the agreement, Schwarz will immediately commence marketing and distributing Verelan and will expand its current sales force of 275 sales representatives for the upcoming launch of Verelan PM. Both products will be manufactured by Elan and supplied to Schwarz Pharma. Schwarz has proven expertise in the area of cardiovascular disorders with five products currently on the U.S. market including Univasc(R) for hypertension and Monoket(R) for angina.

Patrick Schwarz-Schuette, chairman and CEO of Schwarz, said: "We are very excited about the transaction. This partnership allows us to fuel the rapid growth of our U.S. business and to further expand our marketing and sales presence in the U.S. The existing Verelan franchise provides the opportunity to introduce Verelan's nighttime formulation from a well respected brand platform, and creates synergies with our current cardiovascular product portfolio."

Donal J. Geaney, chairman and CEO of Elan, said: "We are pleased to announce our distribution and marketing agreement for Verelan and Verelan PM with Schwarz Pharma. Started in 1946 as a pharmaceutical manufacturing business in Germany, Schwarz has grown and expanded dramatically, currently maintaining a presence in all key international markets except Japan."

Mr. Geaney continued, "With the acquisition of the Verelan franchise, we recognized the need to have a focused and experienced cardiovascular marketing company manage the product range. We believe Schwarz Pharma fits this profile ideally with a history of marketing cardiovascular products and possessing sufficient critical mass to present Verelan and Verelan PM to the market. With Schwarz's proven expertise in the cardiovascular field and their extensive knowledge of key markets, we are sure Verelan will continue to maintain a strong position in the market place. Once Verelan PM is approved and introduced, we are confident that Schwarz will successfully establish the product, extending the life of the verapamil franchise."

Schwarz Pharma, Inc. is the U.S. affiliate of Schwarz Pharma AG, an international pharmaceutical company with global headquarters in Monheim, Germany and traded on the Frankfurt and Duesseldorf Stock Exchanges. In 1997 the Schwarz Pharma Group had total sales of DM 1.27 billion with the U.S. affiliate accounting for 26.2 percent.

Elan is a leading worldwide specialty pharmaceutical company with its principal research and manufacturing facilities in Ireland, the United States and Israel. Elaine's shares trade on the New York, London and Dublin Stock Exchanges.