Alpharma Reaches Agreement to Expand Vancomycin Capacity

FORT LEE, N.J., June 8 /PRNewswire-FirstCall/ -- Alpharma Inc. today announced that it had reached an agreement with Zhejiang Hisun Pharmaceutical Co., Ltd ("Hisun") that, over the next several years, will double the company's capacity to manufacture one of its major active pharmaceutical ingredients ("API"), Vancomycin, subject to the receipt of the required regulatory approvals. Vancomycin is the treatment of choice for severe gram positive hospital infections. Alpharma is one of the worlds leading suppliers of Vancomycin, which is currently manufactured at Alpharma sites in Copenhagen, Denmark and Budapest, Hungary.

Hisun was established in 1956 and has evolved into one of the largest bulk API manufacturers in China. Hisun ranks among the top 20 pharmaceutical companies in China as well as in the top 500 Chinese companies overall.

Beginning in 2006, Alpharma will purchase Vancomycin from Hisun until the completion of the construction and regulatory approval process of a new Vancomycin manufacturing plant at the Hisun facility in China. The new facility, which will be owned and operated by Alpharma, will incorporate technology purchased from Hisun, in addition to certain Alpharma technology. By late 2007, the company is targeting to secure the necessary regulatory approvals to enable Vancomycin produced at the new site to be sold in the global market place, including the U.S. and European markets. In addition, under the agreement, Hisun will provide certain services in connection with the operation of the new plant.

Alpharma Inc. is a global specialty pharmaceutical company with leadership positions in products for humans and animals. Alpharma is presently active in more than 60 countries. Alpharma has a growing branded franchise in the chronic pain market with its morphine- based extended release KADIAN(R) product. In addition, Alpharma is among the world's leading producers of several specialty pharmaceutical-grade bulk antibiotics and is internationally recognized as a leading provider of pharmaceutical products for poultry and livestock.

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