SAN DIEGO, September 24 /PRNewswire/ --

- Agreement Validates Verus' Strategy to Pursue Pediatric Programs
Addressing Unmet Needs

Verus Pharmaceuticals, Inc., a pediatric-oriented specialty
pharmaceutical company, announced today that AstraZeneca, one of the world's
leading pharmaceutical companies, has acquired its pediatric asthma
development programs. Included in the transaction are the North American
rights to a Captisol(R) enabled budesonide solution (controller medication),
a proprietary short-acting beta agonist solution (rescue medication), a
customized version of eFlow(R) (novel nebulizer delivery device) for use with
both medications, and other intellectual property and related assets from
Verus.

Under the terms of the agreement, Verus is to receive an upfront payment
of US$30 million, development expense reimbursements, and a potential
earn-out payment of US$280 million. No further terms have been disclosed.

"We are excited to have completed this transaction with AstraZeneca, the
North American leader in pediatric asthma treatment innovation, and are eager
to collaborate with them to address the multiple unmet medical needs in this
rapidly expanding patient population," said Robert W. Keith, President and
Chief Operating Officer of Verus. "This transaction allows us to refocus our
time and resources on our other emerging development programs, including
those targeting unmet needs associated with related atopic diseases and
conditions."

"AstraZeneca is proud to be a part of these next generation development
programs that hold the potential to help millions of children suffering from
asthma and may positively impact their quality of life," said Jim Helm, Vice
President respiratory primary care at AstraZeneca.

About Pediatric Asthma

Asthma is the most common chronic childhood illness affecting almost 10
percent of children in the United States. Approximately 6.5 million children
under the age of 18 have been diagnosed with asthma and the prevalence rates
have more than doubled since 1980. For children under the age of 15, each
year asthma accounts for 3.5 million doctor visits, 650,000 emergency room
visits and 200,000 hospitalizations. The estimated annual cost of treating
asthma in children under the age of 18 is US$3.2 billion.

About Verus

Verus Pharmaceuticals is dedicated to improving the lives of children and
those who care for them. Verus is building a portfolio of products for the
unmet medical needs of children through acquisitions and alliances, with an
initial focus on the treatment of asthma, allergies, and related diseases and
conditions. Verus is differentiated by its pediatric orientation and its
strong financial position and experienced management team, which allows the
company to capitalize on an extensive network to build its product portfolio
and pursue complementary transactions. The company's rigorous, disciplined
approach to strategic decision-making and core competencies in development
and commercialization is expected to provide significant value to its
partners. More information about Verus is available on the company's
corporate website at http://www.veruspharm.com.

About AstraZeneca

AstraZeneca is a major international healthcare business engaged in
research, development, manufacturing and marketing of prescription
pharmaceuticals and supplier for healthcare services. AstraZeneca is one of
the world's leading pharmaceutical companies with healthcare sales of 
US $26.47 billion and is a leader in gastrointestinal, cardiovascular,
neuroscience, respiratory, oncology and infection product sales. AstraZeneca
is listed in the Dow Jones Sustainability Index (Global) as well as the
FTSE4Good Index.

Verus(R) is a registered trademark of Verus Pharmaceuticals, Inc.
Captisol(R) is a registered trademark of CyDex, Inc. and eFlow(R) is a
registered trademark of PARI Pharma GmbH.

Forward-Looking Statements

Verus Pharmaceuticals cautions you that statements included in this press
release that are not a description of historical facts may be forward-looking
statements. The inclusion of forward-looking statements should not be
regarded as a representation by Verus that any of its plans will be achieved.
Actual results may differ materially from those set forth in this press
release due to the risks and uncertainties inherent in Verus' business
including, without limitation, statements about: its ability to identify
appropriate acquisition, licensing, or co-development and/or promotion
candidates in the future or be able to take advantage of the opportunities it
identifies; difficulties or delays in developing, obtaining regulatory
approval, manufacturing and commercializing its products; unexpected
performance or side effects of its products that could delay or prevent
development or commercialization, or that could result in recalls or product
liability claims; the scope and validity of patent protection for its
products; competition from other pharmaceutical companies; and its ability to
obtain additional financing to support its operations. All forward-looking
statements are qualified in their entirety by this cautionary statement and
Verus undertakes no obligation to revise or update this press release to
reflect events or circumstances after the date hereof.

Company Contact:                              Media Contact:
    Robert W. Keith                               Amy Caterina
    President and Chief Operating Officer         Corporate Communications
    Verus Pharmaceuticals, Inc.                   Verus Pharmaceuticals, Inc.
    rkeith@veruspharm.com                         acaterina@veruspharm.com
    +1-858-436-1615                               +1-858-436-1623



Web site: http://www.veruspharm.com