A.P. Pharma and Merial Enter into Worldwide Agreement

A.P. Pharma and Merial Enter into Worldwide Agreement

- Merial to develop pain management product using A.P. Pharma`s Biochronomer
polymer technology -
REDWOOD CITY, Calif.--(Business Wire)--
A.P. Pharma (Nasdaq:APPA), a specialty pharmaceutical company, today announced
that it has entered into a license and development agreement with Merial, a
world leading animal health company, for a long-acting pain management product .
The product, which contains an undisclosed analgesic, uses A.P. Pharma`s
Biochronomer technology to provide sustained drug levels and pain relief over
several days following a single administration. The product is currently
undergoing animal efficacy studies.

The license agreement announced today follows a successful research
collaboration between the companies. Under the terms of the new agreement, A.P.
Pharma grants Merial a worldwide, exclusive license to the product for use in
treating companion animals (cats and dogs). A.P. Pharma will receive an
undisclosed upfront payment, development funding and potential future milestones
that are in addition to royalties following commercialization.

"A.P. Pharma`s collaboration with Merial allows us to work with one of the
world's leading animal health companies as we seek to expand the application of
our Biochronomer technology into the field of veterinary medicine," said Ronald
Prentki, A.P. Pharma`s President and CEO. "We are hopeful that, through our
efforts with Merial, we will not only provide veterinarians with an important
new approach to managing pain in companion animals, but also that this effort
will prove to be synergistic with our other pain management programs for

"A.P. Pharma`s Biochronomer technology provides us with an exciting opportunity
to develop a new therapy for treating pain in companion animals," said Peter
Selover, Merial`s Vice President of Business Development. "We have high
expectations for the application of this pain management product and look
forward to our continued efforts with the A.P. Pharma team as we develop this
program forward to commercialization."

About A.P. Pharma

A.P. Pharma is a specialty pharmaceutical company developing products using its
proprietary Biochronomer polymer-based drug delivery technology. The Company`s
primary focus is on its lead product candidate, APF530, for the prevention of
CINV. The NDA for APF530 was submitted in May 2009 and accepted for review in
July 2009, at which time the FDA set a Prescription Drug User Fee Act (PDUFA)
date of March 18, 2010. The Company has additional clinical and preclinical
stage programs in the area of pain management, all of which utilize its
bioerodible injectable and implantable delivery systems. For further
information, visit the Company's web site at www.appharma.com.

A.P. Pharma`s Forward-looking Statements

This news release contains "forward-looking statements" as defined by the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements involve risks and uncertainties, including uncertainties associated
with timely development, approval, launch and acceptance of new products,
satisfactory completion of clinical studies, establishment of new corporate
alliances, progress in research and development programs and other risks and
uncertainties identified in the Company's filings with the Securities and
Exchange Commission. We caution investors that forward-looking statements
reflect our analysis only on their stated date. We do not intend to update them
except as required by law.