Proprietary Product Pipeline

Proprietary development activities are currently focused primarily on expanding the Company’s portfolio of female healthcare products including oral contraceptives and treatments for menopause/perimenopause and endometriosis, through internal development and business development activities. An important part of the product development strategy in the area of female healthcare is to develop a broad line of products designed to meet the unmet medical needs of women. The Company is also pursuing two urology products, one that utilizes its transvaginal ring technology to treat urinary incontinence, and a second that is an oral product targeted to treat the symptoms associated with the treatment of prostate cancer.

In addition, the Company is developing an oral vaccine product to prevent Adenovirus (Types 4 & 7) infections in U.S. military personnel under contract with the Department of Defense (DOD). In 2005 the Company signed an agreement with PLIVA Croatia Ltd. and PAM Kft., to develop, and upon FDA approval to market, the generic biopharmaceutical Granulocyte Colony Stimulating Factor (G-CSF). The parties intend to develop and seek approval to market the product in the United States and Canada as a generic version of Amgen's NEUPOGEN® (filgrastim) product. This initiative builds upon the Company’s experience developed as a result of the Adenovirus project.

The Company continues to identify other proprietary product candidates that further expand its product offerings in these areas and is actively evaluating additional therapeutic categories to add to its proprietary portfolio. As a result of internal development and business development activities, at the end of fiscal 2006 Barr had a broad pipeline of short, mid- and long-term opportunities that include several proprietary products in clinical development, one of which is in Phase III studies, and several NDAs pending at the FDA.

The proprietary research and development team has experience in managing clinical development programs and regulatory matters. This team works closely and leverages synergies with our generic formulation, manufacturing and regulatory groups.