Flamel Technologies Announces Licensing Agreement with Pfizer

Flamel Technologies Announces Licensing Agreement with Pfizer

LYON, France--(BUSINESS WIRE)--Flamel Technologies (Nasdaq:FLML) today announced that Pfizer (NYSE:PFE) has exercised its option to license Flamel's Medusa® technology for the development of a controlled release formulation of an already-marketed therapeutic protein. Flamel will receive a further payment of $1 million pursuant to the exercise of the license; Pfizer will pay all development costs of the program, including milestone payments and royalties on any worldwide commercial sales. The program was begun in 2007 with Wyeth, which was acquired by Pfizer last month. The program leverages Flamel's ability to create controlled-release formulations of therapeutic proteins for intravenous administration.

Stephen H. Willard, Flamel's chief executive officer, commented, "Pfizer's decision to move forward follows a two year evaluation period during which Flamel has developed and demonstrated an aspect of the Medusa platform which allows us to work on controlled release formulations of molecules that are injected intravenously. We believe that this work has the potential to benefit patients in many ways, not least by lessening the time and costs associated with frequent hospital visits."

Flamel Technologies, S.A. is a biopharmaceutical company principally engaged in the development of two unique polymer-based delivery technologies for medical applications. Micropump® is a controlled release and taste-masking technology for the oral administration of small molecule drugs. Flamel's Medusa technology is designed to deliver controlled-release formulations of proteins, peptides, as well as other large and small molecules. The Medusa platform is being applied to improve partners' already-marketed and novel biologics with respect to safety and efficacy, as well as with better pharmacokinetics. Medusa also offers important solutions to threshold issues such as aggregation and solubility.

This document contains a number of matters, particularly as related to the status of various research projects and technology platforms, that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The document reflects the current view of management with respect to future events and is subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. These risks include risks that products in the development stage may not achieve scientific objectives or milestones or meet stringent regulatory requirements, uncertainties regarding market acceptance of products in development, the impact of competitive products and pricing, and the risks associated with Flamel's reliance on outside parties and key strategic alliances. These and other risks are described more fully in Flamel's Annual Report on the Securities and Exchange Commission Form 20-F for the year ended December 31, 2008.