29 January 2007, Godalming, UK: Sinclair Pharma plc ("Sinclair", SPH:L), the international specialty pharmaceutical company, announces that it has signed its first marketing agreement for China. Sinclair's flagship mouth ulcer product, Aloclair®, will be sold by Auroren Pharmaceuticals. China is one of the world's fastest-growing pharmaceutical markets[i] and its market for OTC healthcare products is growing at an average annual rate of 7.8%[ii]. Under the terms of the deal announced today, Sinclair will supply Aloclair Rinse, Gel and Spray to Auroren, which will be responsible for the marketing and distribution of the product in China, Hong Kong and Macau. Sinclair will also receive upfront and milestone payments from Auroren, who will have the exclusive rights to promote Aloclair to dental and medical professionals and consumers. Sales are expected to commence in the next financial year following local registration of the product. Dr Michael Flynn, CEO of Sinclair Pharma, said: "This agreement represents our first step into China and expands our global marketing network into a market of very substantial potential. In 2006 we announced deals to sell Sinclair products in new territories of Russia, Malaysia and Singapore, and with this deal in China we now reach more than 65 countries. Marketing partners such as Auroren give Sinclair the commercial benefits of fast-to-market product sales through companies with local knowledge, while operationally Sinclair's focus on sales and marketing remains in their own core territories and specialty areas." Mr. Mengkun Chen, Chairman and CEO, of Auroren Pharmaceuticals, added: "We are delighted to be Sinclair's first marketing partner in China, and are excited about the market opportunity here for Aloclair. Auroren has proven expertise in product sales and marketing, and a far-reaching sales force of 380 people. We believe that these factors will contribute towards the establishment of Aloclair in the growing Chinese market." - ends - For further information please contact: Sinclair Pharma plc Dr Michael Flynn, CEO Tel: +44 (0) 1483 410 600 Zoe McDougall, Director of Tel: +44 (0) 7973 792 Communications 520 John Barrington-Carver, Communications Tel: +44 (0) 7831 655630 UK Capital MS&L Mary Clark, Halina Kukula Tel +44 (0)20 7307 5340 Germany MC Services Raimund Gabriel, Hilda Juhasz Tel +49 89 210 228 0 Auroren Pharmaceuticals Ms. Ping Zhang, CFO Tel +86 411 875 49088 Dr. H. Sheshberadaran, Member Board Directors Tel +1 201 984 1650 Notes to Editors: Sinclair Pharma plc Sinclair Pharma plc is an international specialty pharmaceutical company. It has a growing sales and marketing operation that is already present in France, Italy, UK, Spain and Portugal, and a complementary marketing partner network that spans more than 65 countries. Sinclair has proven expertise in acquiring or developing commercially attractive and undervalued products, registering these products and bringing them to market within a short time frame. The company focuses on niche therapeutic areas and its current portfolio includes products for dermatological conditions and oral health. Auroren Pharmaceuticals Auroren Pharmaceuticals ("Huirenzhiayo" in Chinese) is a privately held firm located in Dalian, Northeastern Liaoning Province. With support from the Chinese Government It was founded in 2003 through assets purchases (drug licenses and sales forces) of Dalian No. 5 pharma company. In 2005 Auroren was awarded triple A Status by Liaoning Provincial Government for its financial strength and performance. The international focus of Auroren is reflected in its Board of Directors, which includes members with experience of both Eastern and Western businesses. Auroren is part of the Jincheng Group., The company has its own manufacturing facilities and has established its own capabilities to develop, manufacture, register and market Rx and OTC products in China. Its existing products include Rx and OTC Traditional Chinese Medicines (TCMs) targeting wound healing, cardiovascular and diabetes supportive care. The Chinese regulatory authorities are currently reviewing further products in oncology, pain and urinary infections. Auroren has an in-house sales force of 80 and a further 300 contract salespeople, who target 25 key provinces in China (out of 34), mainly concentrated in SouthEast and Central China. Aloclair Aloclair has marketing clearance in the US and the EU. Sinclair has marketing partners for the Aloclair range in 57 countries worldwide and has been launched in 26 countries. Approximately 20% of the general population is affected by mouth ulcers, and they are particularly common in children, women and the over 65s. Aloclair is already penetrating this market with retail sales of more than £5m in the major EU countries alone. Aloclair has a novel mode of action, forming a protective coating over the mouth ulcer, providing fast and durable pain relief, without stinging on application. Other languages For versions of this press release in German, French, Spanish or Japanese please contact [email protected] "Safe Harbor" Statement under the US Private Securities Litigation Reform Act of 1995: Some or all of the statements in this document that relate to future plans, expectations, events, performances and the like are forward-looking statements, as defined in the US Private Securities Litigation Reform Act of 1995. Actual results of events could differ materially from those described in the forward- looking statements due to a variety of factors. [i] Investing in China's Pharmaceutical Industry, PriceWaterhouseCoopers, April, 2006 [ii] OTC Healthcare in China to 2009. Datamonitor, November 14, 2005