AstraZeneca, Impax enter license agreement to commercialize Zomig in the U.S.

Impax Pharmaceuticals, the branded products business unit of Impax Laboratories, Inc. (NASDAQ: IPXL), announced today that it has licensed from AstraZeneca the exclusive United States (U.S.) commercial rights to Zomig® (zolmitriptan) tablet, orally disintegrating tablet, and nasal spray formulations. As part of a Distribution, License, Development and Supply Agreement, Impax will also have non-exclusive rights to develop new products containing zolmitriptan and to exclusively commercialize these products in the U.S. in connection with the Zomig® brand. Under terms of the Agreement, Impax will pay AstraZeneca quarterly payments totaling $130 million during 2012, and thereafter, Impax will pay AstraZeneca tiered royalties on future sales of zolmitriptan products. Impax will receive the benefit of the gross profit on U.S. Zomig® sales commencing from January 1, 2012.

The transaction is expected to be immediately accretive on a non-Generally Accepted Accounting Principles (GAAP) basis to Impax's earnings per share (EPS) in 2012 and potentially accretive on a GAAP basis depending upon GAAP purchase price treatment, which will be determined in due course.

"We are pleased to obtain a licensing agreement for Zomig®, consistent with our goal to increase the revenue and financial contribution of our Impax Pharmaceuticals business to Impax Labs," said Michael Nestor, president of Impax Pharmaceuticals. "Zomig®, with U.S. net sales for the twelve months ended September 30, 2011 of $163 million, is a strong neurology brand, and the nasal spray form has U.S. patents expiring as late as 2021. The Zomig® product franchise fits well with the capabilities of our neurology focused specialty sales force. It will support the growth of our commercial organization as we prepare for the potential launch of IPX066, our leading brand product candidate for Parkinson's Disease, and beyond."

"We expect Zomig® will contribute meaningfully to our total company revenues and earnings in 2012 and 2013. For the longer term profitability of the brand business unit, we look to build sales of the Zomig® nasal spray dosage form," stated Larry Hsu, president and CEO of Impax Laboratories. "The Zomig® license is the latest effort in our active pursuit of additional long term growth opportunities for our generic and brand businesses."