Ortho-McNeil, Inc., Settles Patent Infringement Litigation Against Par/Kali

Generic Manufacturers Acknowledge Patent for ULTRACET® is Valid, Enforceable and Infringed

Ortho-McNeil, Inc., announced today that it settled its patent litigation against Par Pharmaceutical Companies, Inc., and its subsidiaries, Par Pharmaceutical, Inc., and Kali Laboratories, Inc., generic drug manufacturers, regarding their infringement of the Ortho-McNeil patent for ULTRACET® (tramadol/acetaminophen).

As part of the settlement, Par/Kali acknowledged that the reissue patent for ULTRACET® is valid and enforceable, and that they infringed it by selling generic versions of ULTRACET® in the U.S. market. Par/Kali will pay to Ortho-McNeil a lump-sum for past damages and will have a royalty-bearing license until its agreed-upon exit from the market on November 15, 2007.

“We are pleased that we were able to reach this agreement with Par/Kali and that the patent for ULTRACET® will not be infringed by this company. We will continue to vigorously defend our patents,” said Jeffrey N. Smith, president, Ortho-McNeil, Inc.