Record year for Cosmo in 2012

Record year for Cosmo in 2012

Revenues increase by 77.7%, net profit by 154.1%

Comprehensive income jumps to EUR 64.0 million

One new drug approved; two in late stage development

Confident outlook for 2013

Lainate, Italy - 28 March 2013 - Cosmo Pharmaceuticals S.p.A. (SIX: COPN)
today announced its results for the year ended 31 December 2012.

Financial highlights

  *EBITDA increased by 160.6% to EUR29.0 million
  *Net profit after tax increased by 154.1% to EUR19.3 million
  *Comprehensive income increased by nearly 8 times to EUR 64.0 million,
    driven by the increase of Santarus' shares
  *Total revenue increased by 77.7% to EUR59.5 million
  *Royalties increased by 16.2% to EUR11.7 million
  *Manufacturing of MMX® based products increased by 36.0% to EUR14.7 million
  *Other contract drug manufacturing revenue decreased by 3.1% to EUR10.6
  *Operating costs increased by 34.5% to EUR33.1 million

       *Cost of sales increased by 12.2% to EUR16.3 million
       *Total research and development costs increased by 40.1% to EUR11.4

            *EUR10.9 million expensed (plus 111.0%)
            *EUR0.5 million capitalized (minus 75.3%)

  *Cash and cash equivalents increased by 100.4% to EUR27.3 million
  *The value of financial assets available for sale increased by 261.0% to
    EUR66.1 million because of the strong appreciation in value of the
    Santarus shares (NASDAQ: SNTS)

Operational highlights

  *Lialda®/Mezavant®/Mesavancol®, Cosmo's first licensed MMX® product in the
    market, had $399.8 million sales in 2012, an increase of 7.4%, reaching a
    market share of 22.5% of all 5-ASA products in the USA.
  *A license fee of $25 million was received from Medicis at signing of
    CB-03-01 licensing agreement.

Strategic highlights

  *Post year-end, both Uceris(TM) (in the USA) and Cortiment(TM) (in the
    Netherlands) got the marketing authorization in January 2013.
  *Rifamycin SV MMX® attained the clinical end points in phase III trial for
    Travellers' Diarrhoea in the USA; Phase II clinical trials for Methylene
    Blue MMX(TM) were successfully completed.
  *Phase II ascending dose trial of CB-03-01 for Acne was initiated in the

Mauro Ajani, CEO of Cosmo Pharmaceuticals, commented: "I am very pleased with
our results: we have record revenues, record operating profits, a great
increase in the value of our investment in Santarus and the approval of our
next product Uceris(TM) in the USA and Cortiment(TM) in the Netherlands. These
are most important steps in transforming Cosmo into a specialty pharma company
with special competence in providing solutions to colon diseases. This year we
will look to first revenues from Uceris(TM)/Cortiment(TM) and to progressing
our next two products through phase III. We are very optimistic for the

Key consolidated financial figures

In EUR million
                                                  2012           2011
(with the exception of the share data in EUR)
Revenues                                          59.5           33.5
Cost of sales                                     (16.3)         (14.5)
Research and development costs                    (10.9)         (5.2)
Selling, general and administrative costs         (6.0)          (5.7)
Profit before taxes                               26.9           9.1
Net profit                                        19.3           7.6
Profit per share                                  1.41           0.53
                                                  31.12.2012     31.12.2011
Cash and cash equivalents                         27.3           13.6
Financial assets available for sale               66.1           18.3
Equity attributable to owners of the company      124.4          63.2
Total assets                                      151.8          78.0

The Annual Report 2012 with further information was published on 28 March 2013
and is available for download at:

Confident outlook

Financial analysts are projecting a slight increase of sales of Lialda® in the
USA and of Mezavant®/Mesavancol® in the EU. Cosmo's management is very
optimistic for the revenues in Uceris(TM) in the USA and believes that
Cortiment(TM) will be launched in Europe in 2013. This points to a strong
increase in revenues from royalties and MMX® manufacturing in 2013. Whether
milestone income is generated depends on the negotiations for the
licensing/distribution of CB-17-01 (Methylene Blue MMX®).

Cosmo looks forward to progressing CB-17-01 (Methylene Blue MMX®) through
phase III and CB-03-01 through phase II for Acne and is confident that the
European phase III trial of Rifamycin SV MMX® will get re-started as soon as
the regulatory impasse in India is resolved. Cosmo's partners bear the cost of
the phase III clinical trials for Rifamycin SV MMX®. However, the Company is
financing the programmes for Methylene Blue MMX® and CB-03-01, so R&D costs
are scheduled to increase.

A strong emphasis will remain on cost control. Neither cost of goods nor SG&A
are expected to increase materially. Overall, Cosmo expects to post a strong
result in 2013, with revenues above EUR60 million and a corresponding increase
of operating income.

FY12 results presentation and conference call at 10am CET on 28 March 2013

Mauro Ajani, CEO, Luigi Moro, CSO, and Chris Tanner, CFO and Head of Investor
Relations, will present the full year results and discuss the outlook for 2013
at a media and analyst conference to be held today at 10am CET in Haus zum
Rüden (Limmatquai 42, 8001 Zurich).

Participation is also possible via conference call. The dial-in numbers:

+41 (0) 58 310 50 00 Continental Europe
+44 (0) 203 0595 862 UK
+1 613 570 56 13     USA

The presentation is available for download at:

About Cosmo Pharmaceuticals

Cosmo is a speciality pharmaceutical company that aims to become a global
leader in the field of optimized therapies for selected Gastrointestinal and
topically treated Skin Disorders. The company's proprietary clinical
development pipeline specifically addresses innovative treatments for IBD,
such as Ulcerative Colitis and Crohn's Disease, and Colon Infections. In
addition, the Company is developing a diagnostic for the detection of colon
cancer and a new chemical entity for the topical treatment of Acne, Alopecia
and Hirsutism. Cosmo's first product in the market is
Lialda®/Mezavant®/Mesavancol®, a treatment for mild to moderate Ulcerative
Colitis that is licensed globally to Giuliani and Shire Limited. Cosmo's
second product is Uceris(TM)/Cortiment(TM), a steroid with low side effects
that is indicated for Ulcerative Colitis patients that do not get relief when
treated with 5-ASA's and is licensed globally to Santarus and Ferring. Cosmo's
proprietary MMX® technology is at the core of the Company's product pipeline
and was developed from its expertise in formulating and manufacturing
gastrointestinal drugs for international clients at its GMP (Good
Manufacturing Practice) facilities in Lainate, Italy. The technology is
designed to deliver active ingredients in a targeted manner in the intestines.
For further information on Cosmo, please visit the Company's website:

Next events

Annual General Meeting 23 April 2013, Lainate
Half-year results 2013 2 August 2013


Dr. Chris Tanner, CFO and Head of Investor Relations

Cosmo Pharmaceuticals S.p.A.

Tel: +39 02 9333 7614

Some of the information contained in this press release contains
forward-looking statements. Readers are cautioned that any such
forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, and that actual results may differ materially
from those in the forward-looking statements as a result of various factors.
Cosmo undertakes no obligation to publicly update or revise any
forward-looking statements.

Media release (PDF)

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