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Business Strategies > Proprietary Pharmaceuticals

Proprietary pharmaceuticals are often patent-protected or benefit from other non-patent market exclusivities, which generally allow proprietary products to maintain their profitability for longer periods of time than generic products. If a proprietary product has achieved physician and customer loyalty, it will often remain profitable following the onset of generic competition, but will usually generate lower profits than it realized prior to generic competition.

The Company's proprietary pharmaceutical development activities are focused in three main areas:

• patent-protected proprietary products in late stages of development;

• existing chemical compounds in which the development of new forms (liquid vs. tablets, different dosages or other drug delivery systems such as our proprietary, novel vaginal ring delivery system) offer therapeutic or marketing advantages; and

• new chemical entities in select therapeutic categories, including some marketed in other countries (but not currently sold in North America).

Barr's proprietary development activities are focused on expanding its portfolio of female healthcare products, including additional oral contraceptives and treatments for menopause/perimenopause and endometriosis. The Company is also pursuing products in urology, developing products utilizing its innovative transvaginal ring (TVR) drug delivery technology and developing an oral vaccine product to prevent Adenovirus (types 4 and 7) infections. The Company continues to identify other proprietary product candidates that further expand its offerings in these areas while evaluating additional therapeutic categories.

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