Bayer Biological Products Acquires Rights to New Aerosol Inhalation Device

Exclusive deal with Inamed will allow Bayer to offer most technologically advanced inhalation dosing of aerosolized alpha-1 antitrypsin protein

Research Triangle Park, N.C. (October 8, 2003) — Bayer Biological Products (BP) announced today the signing of a deal with Inamed GmbH (Gemuenden, Germany) for exclusive use of its new advanced inhalation technology for the dosing of alpha-1 antitrypsin (AAT) protein. This deal includes, but is not limited to, Inamed's new model of the AKITA, an inhalation device based on a computer-controlled inhalation system. This deal is an important element of Bayer BP's ongoing development program for an aerosolized plasma-derived AAT product.

The new version of the AKITA device provides the most advanced technology, offering significant advantages in medical and patient convenience for inhaling aerosolized AAT. The new AKITA is small and lightweight; highly efficient, resulting in less wasted product; delivers individualized and reproducible dosing tailored to each patient through smart card technology; and requires less time to inhale the prescribed dose. Under the terms of the deal, Bayer BP will have worldwide exclusive rights to the new AKITA device and any other products developed by Inamed based on the same technology for clinical development and marketing of its inhaled AAT products. Currently, all commercially available AAT products must be administered intravenously.

Bernhard Schaefer, vice president of global strategic marketing for Bayer BP commented on the importance of the deal with Inamed. "The AKITA technology represents a major advance in inhalation dosing. While we are excited about the opportunities this deal offers Bayer BP for developing our aerosolized AAT product, we are most pleased about the tremendous improvements in efficiency and patient convenience the device offers."

Speaking on behalf of Inamed, Dr. Gerhard Scheuch, CEO, said, "We are extremely excited to be working with Bayer BP in the development of AAT as an aerosol. We are pleased that Bayer BP recognizes the important advances represented by the AKITA system and will be using it to provide important benefits to their patients. This is an important milestone in our business development strategy, to license the AKITA technology exclusively for certain indications."

Early developmental work on the aerosolized plasma-derived AAT has begun. Research with the new AKITA device will include determinations of required doses and validation experiments required to register the device with regulatory authorities. Preclinical and toxicology studies are scheduled to begin in 2004.

About Bayer HealthCare
Bayer HealthCare combines the global activities of the divisions of Bayer AG in the fields of Biological Products, Consumer Care, Diagnostics, Animal Health, and Pharmaceuticals. More than 34,000 employees support the worldwide operations of Bayer HealthCare.

Bayer Biological Products is part of the worldwide operations of Bayer HealthCare, a subgroup of Bayer AG. Bayer HealthCare is one of the world's leading innovators in the health care and medical products industries.

Information about Bayer Biological Products Division can be found at www.bayerbiologicals.com.

About Inamed
Inamed GmbH, Intelligent Aerosol Medicine, is a Germany-based drug delivery company, specializing in aerosol technology and inhalation systems. Inamed develops and markets highly efficient inhalers that allow dosing flexibility by controlling the patient's breathing pattern, thus, leveraging the full benefit of aerosolized drug applications. With the innovative AKITA inhalation system, the inhalation treatment can be tailored individually to each patient through smart card technology to achieve a reproducible dosage in the human lungs.

Inamed, as a leading service provider for in-vitro and in-vivo inhalation studies, partners globally with leading pharmaceutical and biotechnology companies to apply their inhalation platforms to pharmaceuticals that require critical dosage control.

Inamed GmbH, Intelligent Aerosol Medicine, is privately held and has facilities in Munich (R&D) and Gemünden (Headquarters and Logistics). www.inamed.de

Forward-looking Statements
This news release contains forward-looking statements based on current assumptions and forecasts made by Bayer Group management. Various known and unknown risks, uncertainties, and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company, and the estimates given here. These factors include those discussed in our public reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including our Form 20-F). The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Contact:
Tricia McKernan
Tel: 919.316.6316
Fax: 919.316.6673
E-mail: tricia.mckernan.b@bayer.com

Source:
McKernan, Tricia. "
Bayer Biological Products Acquires Rights to New Aerosol Inhalation Device" Bayer BP 8 Oct 2003, http://www.bayerbiologicals.com/News_Center/Press/2003/20031008.asp .