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26 October 2009

James Hatton’s Deal Wins Licensing Executives Society’s 2009 Deals of Distinction Award

The license and supply agreement negotiated by Farris Partner James Hatton in November 2008 has been awarded the Licensing Executives Society’s 2009 Deals of Distinction Award. Hatton’s deal was the only deal to receive an award in the Health Care Sector category this year.

In November, 2008, Eli Lilly and Company and United Therapeutics Corporation entered into a license and a supply agreement related to the U.S. commercialization rights for the pulmonary arterial hypertension (PAH) indication of Lilly`s molecule, tadalafil. United Therapeutics made an upfront payment of $150 million to Lilly for the exclusive rights to commercialize tadalafil for PAH in the United States, as well as for a product manufacturing and supply arrangement. Lilly purchased $150 million of United Therapeutics common stock. The transaction will greatly enhance the ability to provide this medicine as a new therapeutic option for patients of this very serious disease.

“This deal is a clear demonstration of the power of courage and creativity in licensing,” said Mark Nawacki, chair of the LES Life Sciences Sector. “Historically, large pharma has been very cautious in partnering deals for new indications on major strategic brands such as tadalafil (marketed as Cialis by Lilly). This is an inspired transaction because the financial deal structure mitigates such concerns while the equity purchase component enables a solution in the worst capital market we have seen in a generation.”

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