Photocure ASA: Photocure signs agreement with Salix Pharmaceuticals for Lumacan(TM)

Photocure (OSE: PHO), a Norwegian specialty
pharmaceutical company focused in dermatology and cancer, announced today it has signed
a strategic global agreement with Salix Pharmaceuticals Inc. (NASDAQ:SLXP), the US
specialty pharmaceutical company focused on gastrointestinal diseases, for the
development and commercialisation of Lumacan. Lumacan is a photodynamic colorectal
diagnostic intended to significantly improve the detection of precancerous and cancerous
lesions in the colon through fluorescence diagnosis.



Under the agreement, Salix will obtain an exclusive worldwide license to Lumacan
excluding the Nordic region. Photocure will receive a signing fee of US$4 million and is
entitled to receive additional milestone payments totalling up to US$126.5 million, if
certain conditions are satisfied. The milestones relate to development, regulatory
events and sales achievement. In addition to the milestones, Salix will pay Photocure
tiered double digit royalties on net sales and pay a percentage of all Salix sublicense
revenue worldwide outside of the US. Salix will control and cover development,
registration and commercialisation costs for Lumacan worldwide, with Photocure covering
certain costs of formulation development up to US$3 million.



Photocure has retained the rights to market and sell Lumacan in the Nordic countries. In
addition to the development of Lumacan for colorectal cancer, Salix has the exclusive
right to explore and develop products for additional indications involving the diagnosis
of gastrointestinal dysplasia and cancer. Payments for products in respect of any such
additional indications will be negotiated if and when new product development is
initiated.