Watson
Pharmaceuticals, Inc. and Moksha8, based in Sao Paulo, Brazil, today
announced that they have entered into an agreement that will expand Watson’s
commercial presence in Latin America’s two largest markets, Brazil and Mexico.
 Watson will invest $30 million in Moksha8 as part of Moksha8’s approximately
$61 million USD financing that includes investments from existing investors TPG
Biotechnology and Montreux Equity Partners.  As a result of this agreement,
Watson immediately gains a significant minority ownership position in Moksha8.
 Watson has also committed to invest an additional $20 million, further
increasing its equity position, contingent upon successful execution by Moksha8
of additional third-party product acquisitions over the next year. In
conjunction with its investment in Moksha8, Watson has designated a
representative to serve as a member of the Moksha8 board of directors.

“This unique partnership further demonstrates our commitment to expand our
global footprint through creative business solutions that maximize the
commercial opportunities for our current portfolio of brands and branded
generics, establish the foundation for future growth in high value and expanding
markets, and creates immediate value for both partners,” said Paul Bisaro,
Watson’s President and Chief Executive Officer.

“The management team of Moksha8, led by Simba Gill, has a proven track record
of effectively commercializing products within the brand and branded generic
markets of Mexico and Brazil.  This agreement, which provides Watson with an
initial equity position, enables us to help fund Moksha8’s expansion and to
share in their continued success.  The partnership complements Watson’s existing
commercial operations in Brazil, while establishing an expanded longer-term
strategy to grow our presence in Brazil, establish our presence in Mexico and
develop a pan-Latin American growth strategy,” Bisaro continued.

“The addition of Watson to our current business expands our existing
portfolio and pipeline of high quality products for the Latin America market,”
said Simba Gill, Chief Executive Officer of Moksha8.  “Further, this partnership
marks Moksha8’s entry into the rapidly growing branded generics market and
immediately strengthens our position as a leader in the treatment of CNS
disorders including depression, anxiety and schizophrenia.”

Watson will manufacture and supply select products to Moksha8, which will
have exclusive rights to market, sell and distribute these products in Brazil
and Mexico. Moksha8 and Watson have initially identified approximately one dozen
product candidates, with the opportunity to expand the commercialization and
marketing agreement to include additional products in the future.

Watson will continue to own all marketing authorizations, and Moksha8 will be
responsible for sales, marketing and commercialization expenses.

Moksha8 currently markets 21 branded products for third parties in Latin
America, utilizing a field force of approximately 180 sales representatives in
the areas of CNS, infectious disease and pain. Combined, Brazil and Mexico make
up 75% of the $40 billion USD Pharmaceutical market in Latin America.  Moksha8
is the high quality partner of choice for pharmaceutical and biotechnology
companies seeking to capture value in Latin America

Watson currently manufactures and markets select generic products in the
Brazilian marketplace through a Brazilian subsidiary.  This venture will have no
impact on that subsidiary’s current operations, including current management,
manufacturing and supply chain; Moksha8 will complement Watson’s Brazilian sales
and marketing capabilities.