RALEIGH, NC & LAUSANNE, SWITZERLAND– Raleigh’s Salix Pharmaceuticals, Ltd.(NASDAQ:SLXP)and the Debiopharm Group signed an exclusive license agreement granting Salix the right to sell, market and distribute SANVAR IR in the United States. Debiopharm developed SANVAR for the treatment of acute esophageal variceal bleeding. The product is currently undergoing a confirmatory Phase III trial in the United States for the treatment of EVB secondary to portal hypertension. The U.S. Food and Drug Administration (FDA) has reviewed the protocol for this study under the Special Protocol Assessment (SPA) process. Additional Phase III trials for SANVAR in this indication have been completed in Europe. Under the terms of the agreement, Salix is required to make an up-front payment and regulatory and sales performance milestone payments to Debiovision that could total up to $14 million.

SANVAR IR (immediate release formulation) is the only somatostatin analog that has demonstrated statistically significant benefits in the treatment of esophageal variceal bleeding in association with endoscopic therapy in a placebo-controlled clinical study. SANVAR has been granted orphan drug status in the United States, because it affects less than 200,000 patients in the U.S. per year, and has received an approvable letter from the FDA.

Commenting on the announcement, Bill Forbes, Pharm. D., Vice President, Research and Development, and Chief Development Officer, Salix, stated, “Esophogeal variceal bleeding, or EVB, is a life-threatening and frequent complication of late-stage liver cirrhosis. Survival is directly related to early control of bleeding, and SANVAR works to reduce bleeding by reducing portal hypertension. There is no approved treatment for EVB in the United States at this time. Currently a multi-center Phase III trial is being conducted in the United States at several major gastroenterology centers across the country. It is anticipated that the study will confirm the results of trials conducted earlier in Europe by Debiopharm that demonstrated that the early use of SANVAR with endoscopic treatment improves the control of bleeding and prevents re-bleeding episodes in patients with portal hypertension.”

Carolyn Logan, president and CEO, said, “Salix’s licensing-in of SANVAR again demonstrates our commitment to providing gastroenterologists and their patients with innovative and effective products. Additionally, this acquisition demonstrates our continuing success in executing our strategy to identify emerging opportunities worldwide in order to expand our product portfolio. We look forward to the opportunity to work with Debiovision to maximize the commercial success of SANVAR. If SANVAR is granted marketing approval by the FDA in the time-frame we anticipate, we look forward to being able, by the end of 2007, to offer patients in the United States the first product approved for this serious complication of late-stage liver cirrhosis.”

“We are thrilled to have a company such as Salix as a partner for SANVAR in the United States. We are confident that their gastroenterology focus along with their expertise in sales and marketing will bring this product a long way,” said Loic Maurel, president and CEO of Canadian affiliate of the Debiopharm Group.