Barr Labs, DuPont Pharmaceuticals to Collaborate on Drug Development

Barr Laboratories Inc. (Pomona, NY) and DuPont Pharmaceuticals Co. (Wilmington, DE) have signed a letter of intent to form a strategic relationship to develop, market, and promote five different proprietary products. Details of the transaction were not disclosed.

Under the partnership, DuPont and Barr will establish cooperative marketing, technology, and business development arrangements, with each company supplying a group of proprietary products. DuPont will invest up to $45 million in development of three Barr proprietary products in exchange for royalties on those products and rights to acquire Barr common stock. DuPont will also market Barr's first proprietary product and may assist in the marketing of other Barr proprietary products under development.

In addition, DuPont and Barr have agreed to terminate all litigation between the two companies upon finalization of this agreement.

Barr Laboratories, Inc. is engaged in the development, manufacture, and marketing of generic and proprietary pharmaceuticals.

DuPont Pharmaceuticals focuses on research, development, and delivery of pharmaceuticals to treat unmet medical needs, including HIV, cardiovascular disease, central nervous system disorders, cancer, and arthritis-related disorders. DuPont Pharmaceuticals is also involved in medical imaging.

For more information: Bruce L. Downey, Chairman and CEO, Barr Laboratories Inc., 2 Quaker Rd., Pomona, NY 10970-0519. Tel: 914-362-1100. Fax: 914-362-2774.

Edited by Jim Pomager