Press Releases & Company News

Cosmo Pharmaceuticals S.p.A. seeks a listing on the SWX Swiss Exchange

Not for release, publication or distribution in the United States of America,
Canada, Japan or Australia

Lainate, Italy – 12 February 2007 – Cosmo Pharmaceuticals, a specialty pharmaceutical company that aims to become a global leader in optimised therapies for certain gastrointestinal diseases, announced today that it is seeking to raise new funds through an initial public offering on the SWX Swiss Exchange within the next few weeks.

Cosmo’s proprietary development pipeline specifically addresses innovative treatments for inflammatory bowel diseases (IBD), such as ulcerative colitis and Crohn’s disease, and colon infections. Cosmo’s most advanced product is LIALDA™/MEZAVANT ™ (mesalamine) with MMX™ technology, a once-daily oral treatment for mild to moderate ulcerative colitis licensed globally to Giuliani and Shire Pharmaceuticals. Shire received U.S. Food and Drug Administration (FDA) approval for LIALDA™ on 16 January 2007. LIALDA™/MEZAVANT™ is based on the Company’s proprietary MMXTM technology which allows the delivery of active pharmaceutical ingredients into the lumen of the colon through tablets in a delayed and controlled extent.

In addition, Cosmo has one un-partnered product in phase III of clinical development and two un-partnered products in phase II of clinical development, all products focused on the treatment of IBD and colon infections. The broad yet focused nature of Cosmo’s pipeline allows the Company to evaluate the full range of commercialisation strategies for its products. In addition, Cosmo provides drug formulation and manufacturing services to international pharmaceutical clients from its facilities in Lainate, Milan.

Mauro Ajani, CEO of Cosmo, said: “We are delighted by the prospects of an IPO on the SWX Swiss Exchange. It will provide us with the required capital to finance the development of our pipeline, building on our proprietary and innovative MMX™ technology. The new funding will enable us to retain control of our projects from preclinical development through to commercialisation and thus to capture the maximum value from our current pipeline”. Chris Tanner, CFO, added: “In the near to mid-term, Cosmo will focus on IBD treatments and colon infections. At a later stage, the Company plans to leverage the unique advantages of the MMX™ technology to develop novel drugs for other conditions of the colon.”

Cosmo has grown based on a strong, commercially focused management team, encompassing the full range of capabilities required for an emerging fully integrated speciality pharma company, including product development, regulatory, manufacturing, sales and marketing. Rolf Stahel, former CEO of Shire Pharmaceuticals, was recently appointed Chairman of the Board.

Lehman Brothers International (Europe) and Sal. Oppenheim jr. & Cie. are acting as Joint Global Coordinators and Joint Bookrunners for the planned IPO.

About Cosmo Pharmaceuticals
Cosmo is a speciality pharma company that aims to become a global leader in optimised therapies for certain gastrointestinal diseases. The Company’s proprietary clinical development pipeline specifically addresses innovative treatments for inflammatory bowel diseases (IBD), such as ulcerative colitis and Crohn’s disease, and colon infections. Cosmo’s most advanced development product is LIALDA™/MEZAVANT ™, a treatment for mild-to-moderate ulcerative colitis that is licensed globally to Giuliani and Shire Pharmaceuticals. Cosmo’s proprietary MMX™ technology is at the core of the company’s product pipeline and was developed from its expertise in formulating and manufacturing GI drugs for international clients at its GMP (Good Manufacturing Practice) facilities in Lainate, Italy. For more information on the Company, please visit www.cosmopharmaceuticals.com

About Ulcerative Colitis
Ulcerative colitis is a type of inflammatory bowel disease (IBD) that produces inflammation and ulcers along the inside of the large intestine. The inflammation can interfere with the normal function of the colon, often causing cramping, bloating, diarrhoea, bleeding, fatigue, weight loss and frequent bowel movements which strongly affect the patients’ quality of life. It is believed that as many as 1.4 million people in the United States and 2.2 million people in Europe suffer from IBD, or 0.5% of the Western world’s population. Ulcerative colitis is a chronic relapsing-remitting illness for which there is no known cure. Patients can manage their symptoms. One issue that arises with ulcerative colitis patients is medication compliance and pill burden: many currently available ulcerative colitis treatments require multiple pills to be taken several times daily.

For more information please contact
Dr. Chris Tanner, CFO and Head of Investor Relations
Cosmo Pharmaceuticals
Tel: +39 02 9333 7614

This document does neither constitute an offer to buy or to subscribe to shares of COSMO Pharmaceuticals S.p.A. nor a prospectus within the meaning of the applicable Swiss law. Investors should make their decision to buy or to subscribe to shares solely based on the official offering and listing prospectus. Investors are furthermore advised to consult their bank or financial adviser.

This publication may contain specific forward-looking statements, e.g. statements including terms like "believe", "assume", "expect" or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of the company and those explicitly or implicitly presumed in these statements. Against the background of these uncertainties readers should not rely on forward-looking statements. The company assumes no responsibility to update forward-looking statements or to adapt them to future events or developments.

This document is not being issued in the United States of America and should not be distributed or otherwise transmitted in the United States or to U.S. persons (as defined in the U.S. Securities Act of 1933, as amended (the Securities Act )) or publications with a general circulation in the United States. This document does not constitute an offer or invitation to subscribe for or purchase any securities.

The securities of COSMO Pharmaceuticals S.p.A. have not been and will not be registered under the Securities Act and are not being offered or sold in the United States or to U. S. persons. Securities may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements of the Securities Act.

The information contained herein does not constitute an offer of securities to the public in the United Kingdom within the meaning of the Public Offers of Securities Regulations 1995. No prospectus offering securities to the public will be published in the United Kingdom.

This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order ) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as relevant persons ). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

This document constitutes neither an offer to sale nor an invitation or solicitation to buy securities in Italy and does not constitute a public offering under the meaning of sections 1, item t) and 94(1) of the Legislative Decree n. 58 of 24 February 1998. The securities referred to herein cannot be offered, distributed, marketed, promoted or solicited in Italy to investors other than "Professional Investors" as defined by Articles 25 and 31(2) of Consob s Regulation No. 11522 of 1 July 1998, as amended, (including, inter alia, investment firms, ("SIMs"), banks authorized to provide investment services, stockbrokers, SICAVs, pension funds, insurance companies, entities enrolled in the register referred to in Articles 106, 107 and 113 of the Legislative Decree 385 of 1 September 1993, financial salesmen, individuals possessing the professionalism requirements referred to in Article 31(2) of the Regulation No. 11522, legal persons stating to have specific expertise and experience in financial transactions) without Consob's prior authorization. COSMO Pharmaceuticals S.p.A. intends neither to carry out a public offering of the securities in Italy nor to apply for the relevant Consob's authorization. This press release is not directed to Italian residents other than Professional Investors as defined above.

Any offer of securities to the public that may be deemed to be made pursuant to this communication in any EEA Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any Member State, the Prospectus Directive ) is only addressed to qualified investors in that Member State within the meaning of the Prospectus Directive.

The securities described herein will be offered publicly in Switzerland only. The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, in any jurisdiction in which such offer or solicitation would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any jurisdiction.

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