BioSante Pharmaceuticals and ANI Pharmaceuticals Announce Completion of Merger

  BioSante Pharmaceuticals and ANI Pharmaceuticals Announce Completion of
  Merger

Transforms BioSante into an integrated specialty branded and generic
pharmaceutical company

  *Strong balance sheet with over $10 million in cash and no debt
  *Expected continued growth in annual ANI-labeled prescription revenues
  *Near-term generic product development pipeline that addresses an annual
    market size of approximately $760 million

Business Wire

BAUDETTE, Minn. -- June 20, 2013

BioSante Pharmaceuticals, Inc. (NASDAQ: BPAX) announced today that it has
completed the merger of its wholly-owned subsidiary with and into ANIP
Acquisition Company d/b/a ANI Pharmaceuticals, Inc. (ANI) in accordance with
the terms of the amended and restated agreement and plan of merger, dated as
of April 12, 2013. In connection with the merger, BioSante issued to the
holders of ANI series D convertible preferred stock an aggregate of 32,814,504
shares of BioSante common stock, representing approximately 57 percent of the
outstanding shares of BioSante common stock immediately following the merger.

Arthur S. Przybyl, BioSante's new president and chief executive officer
stated, "I'm excited to announce the completion of our merger. This merger is
the catalyst for potential future growth. We now have a strong balance sheet
with over $10 million in cash and no debt. We expect to utilize the
incremental cash available to us as a result of this merger in two ways: to
accelerate our product development efforts and for potential accretive
acquisitions. We do not expect to need this cash to fund day-to-day
operations. In addition, we expect to receive royalty payments from sales of
our FDA-approved testosterone gel product that is partnered with Teva, while
exploring opportunities to derive value from BioSante's other assets,
including LibiGel^®. Our entire team is eager to continue building BioSante as
an integrated specialty branded and generic pharmaceutical company for the
benefit of our stakeholders."

Mr. Przybyl continued, “In 2007 we acquired two manufacturing facilities and
their related contract manufacturing business that became the catalyst to
launch our own prescription product line. In 2008 we launched the ANI label
and we have steadily increased our annual prescription product revenues while
continuing to execute on our contract manufacturing business. We currently
manufacture and market seven prescription products that we either developed
internally or acquired. ANDAs for five additional generic products are pending
at the FDA and we expect to submit six additional ANDAs in the remainder of
2013. These eleven generic products address a total annual market size of
approximately $760 million, based on data from IMS Health."

BioSante now operates under the leadership of ANI’s management team. In
addition to Mr. Przybyl, the new board of directors of BioSante consists of
Robert E. Brown Jr., Tracy L. Marshbanks, Ph.D. Thomas A. Penn and Robert
Schrepfer (all formerly of ANI), as well as Fred Holubow and Ross Mangano
(both formerly of BioSante).

The completion of the merger, which was effective June 19, 2013, followed the
approval of proposals relating to the merger by the stockholders of both
companies at separate special meetings. Post-merger, BioSante now has 57.2
million shares of common stock and 65,211 shares of class C special stock
outstanding.

Immediately prior to completion of the merger, the BioSante board of directors
authorized, declared and effected a distribution of contingent value rights
(CVRs) to holders of record of BioSante common stock outstanding immediately
prior to completion of the merger at a rate of one CVR per one share of common
stock. The CVRs represent payment rights arising from a future sale, transfer,
license or similar transaction(s) involving BioSante’s LibiGel^® (female
testosterone gel), including a royalty on sales of LibiGel^® if the combined
company launches the product on its own and if less than $2.5 million is spent
on further product development before launch.

About BioSante and ANI

BioSante is an integrated specialty branded and generic pharmaceutical company
developing, manufacturing, and marketing branded and generic prescription
pharmaceuticals through its wholly-owned subsidiary, ANI. 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 eleven products
in development. ANI’s targeted areas of product development include narcotics,
anti-cancers and hormones (potent compounds), and extended release niche
generic product opportunities. BioSante’s other products include an
FDA-approved testosterone gel for male hypogonadism, which is licensed to Teva
Pharmaceuticals USA, Inc. For more information please visit our websites,
www.biosantepharma.com and www.anipharmaceuticals.com.

Forward-Looking Statements

To the extent any statements made in this 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 potential benefits of the merger, the
combined company’s plans, objectives, expectations and intentions with respect
to future operations and products, its anticipated financial position,
operating results and growth prospects and other statements that are not
historical in nature, particularly those that utilize terminology such as
“anticipates,” “will,” “expects,” “plans,” “potential,” “future,” “believes,”
“intends,” “continue,” “should,” “estimates,” 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 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 to realize the anticipated benefits from the merger 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 following the merger, including adverse effects on
employee retention and on business relationships with third parties; the risk
that the combined company will need the incremental cash resulting from the
merger for day-to-day operations, reducing the amount available for product
development efforts and potential acquisitions; the risk that royalty payments
from sales of the company’s FDA-approved testosterone gel product will be
lower than expected; the risk that the CVRs may not result in future payments
to the holders thereof; 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; and the marketing success of the
combined company’s licensees or sublicensees. More detailed information on
these and additional factors that could affect the combined company’s actual
results are described in BioSante’s filings with the Securities and Exchange
Commission, including its most recent annual report on Form 10-K and quarterly
report on Form 10-Q, as well as BioSante’s joint proxy statement/prospectus,
filed with the Securities and Exchange Commission on May 8, 2013. All
forward-looking statements in this news release speak only as of the date of
this news release and are based on the combined company’s current beliefs and
expectations. The combined company undertakes no obligation to update or
revise any forward-looking statement, whether as a result of new information,
future events or otherwise.

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Contact:

For more information about BioSante and ANI, please contact:
Arthur S. Przybyl
(218) 634-3608
aprzybyl@biosantepharma.com