BioSante Pharmaceuticals and ANI Pharmaceuticals Announce Special Meetings of Stockholders to Consider Proposed Merger

  BioSante Pharmaceuticals and ANI Pharmaceuticals Announce Special Meetings
  of Stockholders to Consider Proposed Merger

        Special Meetings of Stockholders Scheduled for March 15, 2013

 BioSante Also Announces Record Date for Contingent Value Rights Distribution

Business Wire

LINCOLNSHIRE, Ill. & BAUDETTE, Minn. -- January 22, 2013

BioSante Pharmaceuticals, Inc. (NASDAQ: BPAX) and ANIP Acquisition Company
d/b/a ANI Pharmaceuticals, Inc. announced today that each company will hold a
special meeting of its stockholders on Friday, March 15, 2013 to consider and
vote on certain matters in connection with the proposed merger of BioSante and
ANI pursuant to the agreement and plan of merger dated October 3, 2012.

BioSante and ANI have fixed the close of business on January 17, 2013 as the
record date for the purpose of determining the stockholders who are entitled
to notice of, and to vote at, their respective special meetings of
stockholders. The special meeting of BioSante’s stockholders will be held at
8:00 a.m., Central Daylight Savings Time, at BioSante’s corporate office
located at 111 Barclay Boulevard, Lincolnshire, Illinois 60069. The special
meeting of ANI’s stockholders will be held at 9:00 a.m., Eastern Daylight
Savings Time, at the offices of MVP Capital Partners located at 259 N.
Radnor-Chester Road, Suite 130, Radnor, Pennsylvania 19087. BioSante and ANI
stockholders are encouraged to read the definitive joint proxy
statement/prospectus in its entirety as it provides, among other things, a
detailed discussion of the proposed merger, the merger agreement and the
process that led to the proposed merger.

In addition to the approval of BioSante’s and ANI’s stockholders, the
completion of the merger is subject to other customary closing conditions.

BioSante stockholders who need assistance in voting their shares or who have
questions regarding BioSante’s special meeting may contact AST Phoenix
Advisors toll-free at (877) 478-5038.

BioSante also announced today that its board of directors has set the close of
business on March 15, 2013, the date of the special meeting of BioSante’s
stockholders, as the record date with respect to the anticipated distribution
of contingent value rights (CVRs) providing payment rights arising from a
future sale, transfer, license or similar transaction(s) involving BioSante’s
LibiGel^® (female testosterone gel) to holders of BioSante common stock.
Although BioSante’s board of directors has set the record date for such
distribution, BioSante’s board of directors has not yet authorized or declared
the distribution and does not intend to do so until after BioSante’s and ANI’s
stockholders have approved the merger and all related matters being submitted
to a vote of such stockholders. The CVR distribution will be effected
immediately prior to, but contingent upon, completion of the merger.

BioSante and ANI expect to close the merger as soon as practicable following
receipt of approval of the proposed merger by BioSante’s and ANI’s
stockholders at their respective special meetings.

About the Proposed Merger

Under the terms of the merger agreement, if the proposed merger is completed,
ANI will merge with and into BioSante, with BioSante continuing as the
surviving company. Upon completion of the merger, the combined company will be
renamed ANI Pharmaceuticals, Inc. and will operate under the leadership of the
ANI management team, with Arthur S. Przybyl serving as President and Chief
Executive Officer. In addition to Mr. Przybyl, the board of directors of the
combined company is expected to have two current directors from BioSante and
four current ANI directors. The combined company that will result from the
merger will be a fully integrated specialty pharmaceutical company focused on
developing, manufacturing and marketing branded and generic prescription
pharmaceuticals.

Pursuant to the terms of the merger agreement, upon completion of the merger,
ANI stockholders will have the right to receive, for each share of ANI capital
stock they hold, that number of shares of BioSante common stock, if any, as
determined pursuant to the exchange ratios described in the merger agreement
and the provisions of ANI’s certificate of incorporation. Following completion
of the merger, the current ANI stockholders are expected to own approximately
53 percent of the outstanding shares of common stock of the combined company,
and the current BioSante stockholders are expected to own approximately 47
percent of the outstanding shares of common stock of the combined company. The
exchange ratios are subject to potential adjustment as described in the merger
agreement depending upon the amount of “net cash” of BioSante as of a
determination date prior to the closing date of the merger, but in no event
will the current ANI stockholders own less than 50.1 percent (or the current
BioSante stockholders own more than 49.9 percent) of the outstanding shares of
common stock of the combined company.

About BioSante Pharmaceuticals, Inc.

BioSante’s corporate strategy is to develop high value medically-needed
pharmaceutical products and to implement strategic alternatives with respect
to its products and its company, including licenses, business collaborations
and other business combinations or transactions with other pharmaceutical and
biotechnology companies. BioSante’s products include LibiGel^® (transdermal
testosterone gel) for the treatment of female sexual dysfunction (FSD),
specifically hypoactive sexual desire disorder (HSDD), which is in Phase III
development. BioSante also is developing a portfolio of cancer vaccines, with
17 Phase I and Phase II clinical trials currently on-going. Four of these
vaccines have been granted Orphan Drug designation by the U.S. Food and Drug
Administration (FDA). BioSante’s other products include an FDA-approved
testosterone gel for male hypogonadism, which is licensed to Teva
Pharmaceuticals USA, Inc., and the Pill-Plus™, an oral contraceptive in Phase
II clinical development by Pantarhei Bioscience B.V. BioSante’s first
FDA-approved product, Elestrin™ (estradiol gel) indicated for the treatment of
hot flashes associated with menopause, is marketed in the U.S. by Meda
Pharmaceuticals, BioSante’s licensee.

About ANI Pharmaceuticals, Inc.

ANI Pharmaceuticals is a fully integrated specialty branded and generic
pharmaceutical company developing, manufacturing, and marketing branded and
generic prescription pharmaceuticals. In two facilities with combined
manufacturing, packaging and laboratory capacity totaling 173,000 square feet,
ANI manufactures oral solid dose products, as well as liquids and topicals,
including narcotics and those that must be manufactured in a fully contained
environment due to their potency and/or toxicity. ANI also performs contract
manufacturing for other pharmaceutical companies. Over the last two years ANI
has launched three new products and has 11 products in development targeting
markets with current sales of approximately $775 million. ANI’s targeted areas
of product development include narcotics, anti-cancers and hormones (potent
compounds), and extended release niche generic Rx product opportunities. For
more information, please visit www.anipharmaceuticals.com.

Forward-Looking Statements

To the extent any statements made in this news release deal with information
that is not historical, these are forward-looking statements under the Private
Securities Litigation Reform Act of 1995. Such statements include, but are not
limited to, statements about the proposed transaction between BioSante and
ANI, the terms, timing, conditions to and anticipated completion of the
proposed transaction, the expected ownership of the combined company and the
composition of the combined company’s board of directors and management team;
the anticipated distribution to BioSante stockholders of contingent value
rights (CVRs) immediately prior to the merger and the terms, timing and value
of such CVRs, the potential benefits of the proposed transaction to the
BioSante and ANI stockholders, the combined company’s plans, objectives,
expectations and intentions with respect to future operations and products,
the anticipated financial position, operating results and growth prospects of
the combined company and other statements that are not historical in nature,
particularly those that utilize terminology such as “will,” “expects,”
“plans,” “potential,” “future,” “believes,” “intends,” “continue,” other words
of similar meaning, derivations of such words and the use of future dates.
Forward-looking statements by their nature address matters that are, to
different degrees, uncertain. Uncertainties and risks may cause BioSante’s and
the combined company’s actual results to be materially different than those
expressed in or implied by such forward-looking statements. Particular
uncertainties and risks include, among others, the failure of the BioSante or
ANI stockholders to approve the transaction, the risk that BioSante’s net cash
at closing will be lower than currently anticipated or the failure of either
party to meet the other conditions to the closing of the transaction; delays
in completing the transaction and the risk that the transaction may not be
completed at all; the failure to realize the anticipated benefits from the
transaction or delay in realization thereof; the businesses of BioSante and
ANI may not be combined successfully, or such combination may take longer, be
more difficult, time-consuming or costly to accomplish than expected;
operating costs and business disruption during the pendency of and following
the transaction, including adverse effects on employee retention and on
business relationships with third parties; the risk that the CVRs may not be
distributed prior to the completion of the merger or at all or may not be paid
out or result in any value to BioSante’s stockholders; general business and
economic conditions; the combined company’s need for and ability to obtain
additional financing; the difficulty of developing pharmaceutical products,
obtaining regulatory and other approvals and achieving market acceptance; the
marketing success of BioSante’s and the combined company’s licensees or
sublicensees. More detailed information on these and additional factors that
could affect BioSante´s actual results are described in BioSante´s filings
with the Securities and Exchange Commission, including its most recent
quarterly report on Form 10-Q. All forward-looking statements in this news
release speak only as of the date of this news release and are based on
BioSante´s current beliefs and expectations. BioSante undertakes no obligation
to update or revise any forward-looking statement, whether as a result of new
information, future events or otherwise.

Important Additional Information for Investors and Stockholders

This communication is being made in respect of the proposed merger between
BioSante and ANI and related matters involving BioSante and ANI. In connection
with the proposed transaction, BioSante has filed with the SEC and the SEC has
declared effective a registration statement on Form S-4, containing a joint
proxy statement/prospectus and other relevant materials. The final definitive
joint proxy statement/prospectus is in the process of being sent to the
stockholders of BioSante and ANI. Investors and security holders are urged to
read the joint proxy statement/prospectus (including any amendments or
supplements) and other documents filed with the SEC carefully in their
entirety because they contain important information about BioSante, ANI and
the proposed transaction.

Investors and security holders may obtain free copies of the registration
statement and the joint proxy statement/prospectus and other documents filed
with the SEC by BioSante at the SEC’s web site at www.sec.gov. Free copies of
the registration statement and the joint proxy statement/prospectus and other
documents filed with the SEC also can be obtained by directing a request to
BioSante, Attention: Investor Relations, telephone: (847) 478-0500. In
addition, investors and security holders may access copies of the documents
filed with the SEC by BioSante on BioSante’s website at
www.biosantepharma.com.

BioSante and its directors and executive officers and other persons may be
deemed to be participants in the solicitation of proxies in respect of the
proposed transaction described in this release. Information regarding
BioSante’s directors and executive officers is available in BioSante’s annual
report on Form 10-K for the year ended December 31, 2011, which was filed with
the SEC on March 13, 2012 and BioSante’s definitive proxy statement for its
2012 annual meeting of stockholders, which was filed with the SEC on April 9,
2012. If and to the extent that any of the BioSante participants will receive
any additional benefits in connection with the proposed transaction that are
unknown as of the date of this release, the details of those benefits will be
described in the definitive joint proxy statement/prospectus relating to the
proposed transaction. Investors and stockholders can obtain more detailed
information regarding the direct and indirect interests of BioSante’s
directors and executive officers in the proposed transaction by reading the
definitive joint proxy statement/prospectus.

This communication does not constitute an offer to sell or the solicitation of
an offer to buy any securities, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such
jurisdiction.

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Contact:

For more information about BioSante, please contact:
For Investors:
The Trout Group LLC
Tricia Swanson, (646) 378-2953
tswanson@troutgroup.com
or
For more information about ANI, please contact:
For Investors:
Arthur S. Przybyl, (218) 634-3608
arthur.przybyl@anipharmaceuticals.com