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ANI Pharmaceuticals to Acquire Two NDAs from Merck for $75M

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ANI Pharmaceuticals, Inc. ("ANI") (NASDAQ: ANIP) today announced that it has agreed to acquire the NDAs for purified corticotropin gel and corticotropin-zinc hydroxide from Merck (known as MSD outside of the United States and Canada) for $75 million in cash and a percentage of future net sales. ANI estimates that the current annual U.S. market for the products it is acquiring is approximately one billion dollars as evidenced by sales of H.P. Acthar® gel marketed by Mallinckrodt Pharmaceuticals. The acquisition is being funded through cash on hand and is subject to certain customary closing conditions.

Corticotropin gel is a purified corticotropin (ACTH) in a sterile solution of gelatin for prolonged activity. Corticotropin-zinc hydroxide (sterile corticotropin zinc hydroxide suspension USP) is a sterile aqueous suspension of purified corticotropin (ACTH) with zinc hydroxide for repository action. The products are approved for various disease states including Multiple Sclerosis, Rheumatic disorders, Dermatologic diseases, and a variety of Collagen, Ophthalmic, Respiratory diseases as well as Allergic and Edematous states.

As part of its acquisition strategy, ANI has determined to pursue the formation of one or more foreign subsidiaries to effect its acquisitions, manufacture products and/or provide other ancillary services. It is expected that this acquisition from Merck will be effected through one of such subsidiaries. It is anticipated that this will enable ANI to achieve a lower over-all tax rate for its operations.

ANI will host a conference call to discuss the transaction at 10:00am eastern time today. The call will be open to the public and can be accessed through a conference line by dialing (855) 582-8078. The conference ID is 43851450. A recording of the conference call will be available within two hours of the completion of the call and will remain accessible for a period of seven days following the call. To access the replay, dial (855) 859-2056. The access code for the replay is 43851450. This press release and a slide presentation have been posted to the Investor Relations section of the Company's website, www.anipharmaceuticals.com.

Arthur S. Przybyl, President and CEO of ANI Pharmaceuticals stated, "This acquisition is intended to enable us to compete in a one billion dollar branded market alongside H.P. Acthar® gel. We are confident in our ability to re-commercialize these products."

Robert W. Schrepfer, VP Business Development of ANI Pharmaceuticals, commented, "This represents a transformational opportunity for ANI that remains consistent with our strategy of acquiring and re-commercializing previously approved products. We have added a unique and substantial opportunity to our expanding product pipeline and by establishing a new foreign platform we feel that ANI has set the stage for long term growth both organically and through future acquisitions."

About ANI

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