Healthcare Industry News:  sanofi-aventis 

Biopharmaceuticals Litigation

 News Release - October 31, 2006

Advancis Pharmaceutical Submits Proposed Order in Corporate Name Infringement Lawsuit

Advancis Agrees to Transition from its Corporate Name by mid-2007

GERMANTOWN, Md., Oct. 31 (HSMN NewsFeed) -- Advancis Pharmaceutical Corporation (Nasdaq: AVNC ), a pharmaceutical company focused on developing and commercializing novel anti-infective products, today announced that it has jointly submitted with sanofi-aventis a proposed Permanent Injunction and Order to the United States District Court for the District of Delaware, pursuant to the Court's Opinion and Order ruling that Advancis' corporate name is infringing the sanofi-aventis trademark.

As previously announced, the Court's decision, dated September 26, 2006, ruled in favor of sanofi-aventis and deferred an injunction, requiring the parties to jointly submit a proposed Order by October 23, 2006. No monetary damages were associated with the decision, and the Company does not believe there will be a significant financial impact involved from complying with the Court's decision.

On October 20, 2006, the parties asked for, and were granted, an extension to submit the proposed Order until November 8, 2006. On October 27, 2006, Advancis jointly submitted a proposed Permanent Injunction and Order to the Court. Should the Judge accept the proposed Order, as expected, Advancis will surrender its trademark registrations for the "Advancis" name, and, by June 30, 2007, the Company will cease using the name in connection with its future business.

"We are gratified that we were able to reach a mutually acceptable agreement with sanofi-aventis to resolve the trademark issue without significant hardship or financial impact to Advancis," said Edward M. Rudnic, Ph.D., president and CEO of Advancis. "We are pleased to have an ample period of time to effect an orderly transition to a new corporate identity, and have recently started the process to select a new corporate name."

In December 2003, Aventis and Aventis Pharmaceuticals Inc., now part of sanofi-aventis, brought an action against Advancis, alleging, in essence, that the Advancis corporate name is infringing the plaintiff's trademark and seeking injunctive relief. A trial was held in May 2005.

ABOUT ADVANCIS PHARMACEUTICAL:

Advancis Pharmaceutical Corporation is a pharmaceutical company focused on the development and commercialization of anti-infective drug products that fulfill substantial unmet medical needs in the treatment of infectious disease. The Company is developing a portfolio of anti-infective drugs based on its novel biological finding that bacteria exposed to antibiotics in frontloaded staccato bursts, or "pulses," are killed more efficiently and effectively than those under standard treatment regimens. Based on this finding, Advancis has developed a proprietary, once-a-day pulsatile delivery technology called PULSYS. By examining the resistance patterns of bacteria and applying its delivery technologies, Advancis has the potential to redefine infectious disease therapy and significantly improve drug efficacy, shorten length of therapy, and reduce drug resistance versus currently available antibacterial products. For more on Advancis, please visit www.advancispharm.com.

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on Advancis' current expectations and assumptions. These statements are not guarantees of future performance and are subject to a number of risks and uncertainties that would cause actual results to differ materially from those anticipated. The words, "believe," "expect," "intend," "anticipate," "plan," "hope," and variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Statements in this announcement that are forward- looking include, but are not limited to, statements about the Company's future development plans, clinical trials, and financial results. The actual results realized by Advancis could differ materially from these forward-looking statements, depending in particular upon the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. These include, without limitation, risks and uncertainties relating to the Company's financial results and the ability of the Company to (1) reach profitability, (2) prove that the preliminary findings for its product candidates are valid, (3) receive required regulatory approvals, (4) successfully conduct clinical trials in a timely manner, (5) establish its competitive position for its products, (6) develop and commercialize products that are superior to existing or newly developed competitor products, (7) develop products without any defects, (8) have sufficient capital resources to fund its operations, (9) protect its intellectual property rights and patents, (10) implement its sales and marketing strategy, (11) successfully attract and retain collaborative partners, (12) successfully develop, commercialize, and receive market acceptance of its Keflex products, and (13) retain its senior management and other personnel. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today's date. Advancis undertakes no obligation to update or revise the information in this announcement, whether as a result of new information, future events or circumstances or otherwise.


Source: Advancis Pharmaceutical

Issuer of this News Release is solely responsible for its content.
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