AVANIR Licenses Docosanol 10% Cream in Japan

"Under the terms of the agreement, our Japanese partner will beresponsible for all expenses incurred obtaining marketing approval, aswell as the manufacture, distribution and promotion of the product inthe territory. The agreement provides for AVANIR to receive a licensefee, development and sales milestones, and a royalty on all productgross sales," said Marty Emanuele, Ph.D., Vice President of BusinessDevelopment and Licensing at AVANIR. "We look forward to a long andproductive partnership."

Docosanol is sold in North America under the brand name Abreva(R)by AVANIR's licensee, GlaxoSmithKline Consumer Healthcare, and is theonly cold sore product approved by the U.S. Food and DrugAdministration (FDA) available without a prescription.

AVANIR Pharmaceuticals is focused on developing andcommercializing novel therapeutic products for the treatment ofchronic diseases. AVANIR's product candidates address therapeuticmarkets that include central nervous system and cardiovasculardisorders, inflammation, and infectious diseases. AVANIR previouslyannounced positive results in the second of two required Phase IIIclinical trials of Neurodex(TM), an investigational new drug for thetreatment of pseudobulbar affect. Additionally, AVANIR has initiated aPhase III clinical trial for Neurodex as a potential treatment fordiabetic neuropathic pain, a second indication for Neurodex. AVANIRhas active collaborations with two international pharmaceuticalcompanies: Novartis International Pharmaceutical Ltd. for thetreatment of inflammatory disease and AstraZeneca for the treatment ofcardiovascular disease. The Company's first commercialized product,Abreva(R), is marketed in North America by GlaxoSmithKline ConsumerHealthcare and is the leading over-the-counter product for thetreatment of cold sores. Further information about AVANIR can be foundat www.avanir.com.

Except for the historical information presented in this pressrelease, matters discussed herein contain forward-looking statementsthat are subject to certain risks and uncertainties that could causeactual results to differ materially from any future results,performance or achievements expressed or implied by such statements.Statements that are not historical facts, including statements thatare preceded by, followed by, or that include such words as"estimate," "anticipate," "believe," "plan" or "expect" or similarstatements are forward-looking statements. There can be no assurancethat regulatory approval efforts will succeed, that docosanol 10%cream will receive required regulatory clearance, or that even if suchregulatory clearance is received, that such products would ultimatelyachieve commercial success. Risks and uncertainties for AVANIRPharmaceuticals also include the risks set forth in AVANIR's mostrecent Annual Report on Form 10-K and Quarterly Report on Form 10-Qand from time-to-time in other publicly available informationregarding the Company. Copies of such information are available fromAVANIR upon request. The company disclaims any intent or obligationsto update these forward-looking statements.