AVANIR Pharmaceuticals Receives $5 Million Milestone Payment From -- Stock Picks

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Date Posted: 04:20:21 09/24/01 Mon
Author: AVANIR Receives $5 Mill
Subject: AVANIR Pharmaceuticals Receives $5 Million Milestone Payment From

AVANIR Pharmaceuticals Receives $5 Million Milestone Payment From
GlaxoSmithKline for ABREVA(TM) Licensing

Comments on Revenue Growth Target for 2001

SAN DIEGO, Sept. 19 /PRNewswire/ -- AVANIR Pharmaceuticals (Amex: AVN - news) today announced the receipt of a
$5 million dollar licensing milestone payment from GlaxoSmithKline Consumer Healthcare, the consumer product division of
GlaxoSmithKline (NYSE: GSK - news). GlaxoSmithKline is AVANIR's marketing partner in North America for
ABREVA(TM), the first cold sore product approved by the U.S. Food and Drug Administration available to consumers without
prescription.

Under the terms of the license agreement with GlaxoSmithKline, AVANIR receives up to $25 million in licensing fees plus
royalties on sales. This payment brings total milestone payments received to date to $20 million, with the final $5 million expected
in the fourth quarter of 2001.

``ABREVA has become a leading treatment for cold sores in the short time it has been available in the market,'' said President
and Chief Executive Officer Gerald J. Yakatan, Ph.D. ``Pairing our licensing fees with increasing royalties from the successful
marketing of ABREVA in North America, we expect to generate revenue growth of approximately 30% for fiscal 2001. The
revenue generated from ABREVA licensing is in turn reinvested to help fund both our projects in clinical trials and our pre-clinical
research.''

Opportunities for future revenue growth beyond fiscal 2001 are expected to come from the international licensing and registration
of docosanol in Europe and Asia, research collaborations in other business areas, and the development of additional products in
the development pipeline. AVANIR's objective is to have sufficient resources to achieve positive, sustained cash flow from
operations by 2005.

ABREVA, AVANIR's lead product, first became available for sale in late 2000. By March of 2001, ABREVA had become the
largest selling consumer healthcare product for the treatment of cold sores. In clinical trials, ABREVA was shown to cut healing
time in half when compared to a cold sore left untreated. Stress, sunlight, extreme weather temperatures, fatigue, colds, and flu
are among common cold sore triggers for the estimated 40% of the U.S. population that suffers from cold sores.

AVANIR Pharmaceuticals, based in San Diego, is a diversified biopharmaceutical company engaged in research, development,
commercialization, licensing and sales of innovative drug products and antibody generation services. The Company's website is
www.avanir.com.

Except for the historical information presented herein, matters discussed in this press release contain forward-looking statements that are subject to certain risks and
uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements.
Statements that are not historical facts, including statements that are preceded by, followed by, or that include such words like ``estimate,'' ``anticipate,'' ``believe,''
``plan'' or ``expect'' or similar statements are forward-looking statements and may not be relied upon. In regard to financial projections, risks and uncertainties
include risks associated with royalties earned on product sales of ABREVA(TM) by GlaxoSmithKline, timing of receipt of milestone payments, and results of clinical
trials or product development efforts, as well as risks shown in AVANIR's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and from
time-to-time in other publicly available information regarding the company. Copies of this information are available from AVANIR upon request. This publicly
available information sets forth many risks and uncertainties related to AVANIR's business and technology. The company disclaims any intent or obligation to update
these forward-looking statements.

SOURCE: AVANIR Pharmaceuticals

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