Shire and Impax Settle All Pending Litigation Concerning ADDERALL XR®

15 August 2006

Shares in Shire surged more than 6 per cent today after the Basingstoke based drugs group settled its legal dissagreement with a division of American group Barr Laboratories over the marketing of a generic version of Adderall, its highly successful treatment for attention deficit disorders.

The litigation involves patent infringement lawsuits covering Shire's U.S. patents. As part of the settlement, Impax has confirmed that its proposed generic products infringe Shire's '819, '300 and '768 Patents and that the three patents are valid and enforceable.

Impax will be permitted to market generic versions of ADDERALL XR in the United States no later than January 1, 2010 and will pay Shire a royalty from those sales. No payments to Impax are involved in the settlement agreement.

Shire and Impax have also entered into an agreement to promote Shire's CARBATROL® (carbamazepine) for the treatment of epilepsy in the United States. Shire will pay Impax to promote CARBATROL to neurologists using a specialty field sales force of 66 representatives. Promotion will continue for three years beginning on or about July 2006. Impax will have incentives under a gain share arrangement.

Matthew Emmens, Shire Chief Executive Officer stated:

"We are very pleased to have resolved the lawsuits against Impax. The settlement terms are consistent with our beliefs that Shire's patents are valid and enforceable. We look forward to working together with Impax to resume promotion and growth of CARBATROL."

The agreements, which are effective immediately, will be submitted to the United States Federal Trade Commission for its review as required by law.

Shire are based at Hampshire International Business Park, Chineham, Basingstoke, Hampshire RG24 8EP

References: Times Online, Shire

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