Proprietary Business Overview

Barr develops, manufactures and markets proprietary pharmaceutical products under the Duramed label. These products include those developed internally and products acquired, whether through license or an outright acquisition. Although they involve substantially higher risk to bring to market and more extensive research and development activities than generic pharmaceuticals, proprietary products offer the potential for a longer period of market or product exclusivity and greater returns than most generic products.

In addition, proprietary products require greater sales and marketing expenses because of the need to promote them directly to physicians and other healthcare providers, and in some cases directly to consumers. An example of this is the SEASONALE® extended-cycle oral contraceptive product that was launched in November 2003.

As a percentage of total product sales, sales of Duramed proprietary products accounted for 6% of sales in fiscal 2003, 11% in fiscal 2004 and 27% in fiscal 2005.

Duramed Pharmaceuticals, Inc. is the proud sponsor of the FUTURES® Tour.  For more information on the Duramed FUTURES® Tour, the official developmental tour of the Ladies Professional Golf Association (LPGA), please visit www.duramedfuturestour.com.