Ovation Pharmaceuticals Receives $150 Million Equity Commitment from GTCR

4/24/2002

Specialty Pharmaceutical Company Will Use Funds for Acquisition of Therapeutics in Concentrated Physician Specialty Markets

LINCOLNSHIRE, IL (April 2002) - Ovation Pharmaceuticals, a specialty pharmaceutical company that acquires pharmaceutical products and increases their sales through focused sales and marketing activities as well as product improvement and development efforts, announced today that it has received a commitment for up to $150 million in private equity financing. The funds are being provided by GTCR Golder Rauner, LLC, a leading private equity firm that manages more than $4 billion in equity capital.

This funding will enable Ovation to acquire under-promoted branded pharmaceutical products that can benefit from increased sales and marketing efforts and creative life cycle management. Opportunities to acquire these products have been created by consolidation in the pharmaceutical industry, since many products of merged and acquired companies no longer meet the sales volume or strategic objectives of the newer and larger firms.

Ovation is targeting niche products in markets served by a concentrated group of physicians. For example, less than 7,000 medical oncologists care for most cancer patients in the United States, and the majority of doctors and patients are located at a relatively small number of major oncology care centers. A small, well-trained sales force can effectively deliver service and sales in this setting, thereby making it possible to generate a high level of sales in a cost-efficient manner.

To further maximize sales, Ovation operates a clinical development program that focuses on life cycle management for the products it acquires. This program is designed to provide new treatment options and enhance patient care through the development of new formulations and new uses for existing drugs. The program will also enable Ovation to acquire late-stage niche products and complete the development necessary to bring them to market.

Ovation is headed by Wilbur A. (Bill) Gantz, Ovation's Chairman & CEO, who was previously the President of Baxter International Inc. and Chairman and CEO of PathoGenesis Corporation, which was sold to Chiron Corporation in 2000; and Jeffrey S. Aronin, Ovation's President, who previously was the CEO of two successful venture-backed healthcare companies and a sales and marketing executive with American Health Products and Carter-Wallace. Other company executives are veterans of firms including G.D. Searle and Abbott Laboratories.

["We invest in companies with a compelling business model and an exceptional management team, and Ovation clearly meets both criteria," said Ethan Budin, a principal with GTCR who has joined Ovation's Board of Directors. "Ovation's team gives us a solid platform for participating in the lucrative and important specialty pharmaceutical segment of the pharmaceutical market."]

About GTCR Golder Rauner, LLC

Founded in 1980, GTCR Golder Rauner, LLC is a leading private equity investment firm and long-term strategic partner for outstanding management teams. The Chicago-based firm pioneered the investment strategy of identifying and partnering with exceptional executives to build leading companies through a combination of acquisitions and strong internal growth. GTCR currently manages more than $4 billion of equity capital invested in a wide range of companies and industries. For more information, visit www.gtcr.com.

About Ovation Pharmaceuticals, Inc.

Ovation Pharmaceuticals, Inc. is a specialty pharmaceutical company that acquires established branded pharmaceutical products in the United States and increases sales through product improvement, product development, and focused marketing and sales efforts. Ovation also acquires and develops late-stage niche products that may not otherwise reach the market. Founded in 2000, Ovation is privately held and based in the Chicago area. For more information, visit www.ovationpharma.com.

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