Noven Announces Record Financial Results

Noven Income Before Tax Benefits Increases 110%, Revenues Up 36%

Novogyne Net Income Increases 172%, Revenues Up 71%

MethyPatch™ Phase III Trials Completed, New Drug Application Underway

-- Noven Pharmaceuticals, Inc. (Nasdaq:NOVN), today announced record financial results for the quarter and year ended December 31, 2000. It also announced that, during the first quarter of 2001, it completed Phase III clinical trials for its once-daily MethyPatch™, a transdermal methylphenidate delivery system for Attention Deficit Hyperactivity Disorder (ADHD).

Noven Financial Results
Noven reported net income of $10.7 million ($.45 diluted earnings per share) for the fourth quarter of 2000, compared to $7.5 million ($.34 diluted earnings per share) for the fourth quarter of 1999. Income before tax benefits for the fourth quarter of 2000 was $2.6 million ($.11 diluted pre-tax earnings per share). Revenues for the 2000 fourth quarter were $11.7 million, compared to $8.6 million for the same quarter in 1999.

For full-year 2000, Noven reported net income of $19.6 million ($.84 diluted earnings per share), compared to $10.5 million ($.48 diluted earnings per share) for 1999. Income before tax benefits for 2000 was $12.0 million ($.52 diluted earnings per share). Revenues for 2000 were $42.9 million, compared to $31.6 million for 1999.

As of December 31, 2000, Noven had cash and cash equivalents of $41.0 million, compared to $15.3 million as of December 31, 1999.

Novogyne Pharmaceuticals, Noven's women's health joint venture with Novartis, contributed $2.9 million and $9.3 million to Noven's 2000 fourth quarter and full-year financial results, respectively, which amounts are reported as "Equity in earnings of Novogyne" on Noven's Statements of Operations. Novogyne contributed $1.5 million to Noven's financial results during all of 1999.

Novogyne Financial Results
For full-year 2000, Novogyne's net income increased to $29.1 million, compared to $10.7 million in 1999, and revenues increased to $58.5 million, compared to $34.3 million in 1999. "The Novogyne sales force proved what it could do in 2000, making the Vivelle® family the second largest selling family of estrogen patches in the country, and the number one seller in our target markets," said Neil Jones, Noven's Vice President, Sales and Marketing, and head of the Novogyne sales effort. "These market share gains led to increases of 172% and 71% in Novogyne's 2000 net income and revenues, and we saw additional market share gains in January 2001."

MethyPatch™ Phase III Trials
Noven also announced that, during the first quarter of 2001, it completed pivotal Phase III clinical trials for its once-daily MethyPatch™ transdermal methylphenidate delivery system for ADHD. "With Phase III studies completed, we are actively preparing our New Drug Application for MethyPatch™," said Dr. Anthony de Padova, Noven's Vice President, Clinical Research and Regulatory Affairs. "Our goal is to file the application with the Food and Drug Administration in the second quarter of 2001, and to publicly release study results in the latter half of the year."

Business Outlook
"With a 36% increase in revenues and a 110% increase in pre-tax income, Noven had another outstanding year in 2000," said Robert C. Strauss, Noven's President, CEO and Co-Chairman. "We achieved these results while investing significantly in our MethyPatch™ clinical trials, particularly in the fourth quarter. For 2001 and beyond, we believe we have the growth drivers in place to continue to rapidly improve our top and bottom lines. We expect that, through Novogyne, our transdermal estrogen patches will continue to gain share in the U.S. hormone replacement therapy (HRT) market, and that Novartis will begin to extend the reach of our estrogen and our combination patches internationally. In 2002, as our HRT products are gaining momentum, our once-daily MethyPatch™ product for ADHD should be launched in the U.S. In the years to follow, a more advanced line of Noven patches should take our HRT franchise to new levels of success, and our developmental androgen patch for Female Sexual Dysfunction may help pioneer a new therapeutic category. As we look to the future, Noven has never been in a stronger position to reward shareholders as it helps patients around the world."

Analyst Conference Call
A telephone conference among management and equity analysts relating to Noven's financial results will be broadcast live via the Internet at beginning at 5:00 p.m. Eastern time this afternoon, February 26. Thereafter, a rebroadcast of the call will be accessible at the same web site. For those without Internet access, a taped replay of the conference call will be available by telephone from February 26 at 8:15 p.m. Eastern time until the evening of February 28 by calling 800-475-6701 (from within the U.S.) or 320-365-3844 (from outside the U.S.) and entering the access code 572745.

                      Noven Pharmaceuticals, Inc.

Statement of
Operations Data:    Three Months Ended        Twelve Months Ended
(amounts in           December 31,                 December 31,
thousands, except    2000       1999             2000       1999
per share amounts) --------   --------         --------   --------

   Product sales    $ 11,191   $ 8,473         $ 41,998   $ 31,334
   License revenue       486       147              926        316
                    --------  --------         --------   --------
   Total revenues     11,677     8,620           42,924     31,650

   Cost of
    sold               5,268     2,652           19,219     12,721
    and development    4,934     2,444           13,621      7,171
    general and
    administrative     2,368     2,414            8,737      7,860
                    --------  --------         --------   --------
Total  expenses       12,570     7,510           41,577     27,752
                    --------  --------         --------   --------
Income (loss)
 from operations        (893)    1,110            1,347      3,898

Equity in
 earnings of
 Novogyne               2,911    1,487            9,294      1,487
 income, net              612      150            1,385        343
                     --------  --------         --------   --------
Income before
 income taxes           2,630    2,747           12,026      5,728

Income tax benefit      8,078    4,800            7,608      4,732
                     --------  --------         --------   --------

Net income           $ 10,708  $ 7,547          $ 19,634  $ 10,460
                     --------  --------         --------   --------
Basic earnings
 per share             $ 0.48   $ 0.35            $ 0.90    $ 0.49
                     --------  --------         --------   --------
Diluted earnings
 per share             $ 0.45   $ 0.34            $ 0.84    $ 0.48
                     --------  --------         --------   --------

Weighted average number of
common shares outstanding:

     Basic             22,132   21,529            21,914    21,508
                     --------  --------         --------   --------
     Diluted           23,682   22,410            23,249    21,897
                     --------  --------         --------   --------

                                As of December 31,
Balance Sheet Data:         2000                  1999
                          --------              --------
   Cash and
    cash equivalents      $ 40,976              $ 15,338

   Working capital        $ 46,734              $ 16,581

   Property, plant
   and equipment, net     $ 15,154              $ 15,329

   Investment in
   Novogyne               $ 15,431               $ 8,365

   Total assets          $ 104,031              $ 56,888

   Deferred license
   revenue                $ 27,220               $ 8,028

   equity                 $ 65,277              $ 39,393

About Noven
Noven Pharmaceuticals, Inc., headquartered in Miami, Florida, is a leader in the development of transdermal and transmucosal drug delivery technologies and products. Together with Novartis Pharmaceuticals, Noven owns a women's health products company called Novogyne Pharmaceuticals. Noven's existing products include advanced estrogen transdermal delivery systems (including Vivelle-Dot™, licensed to Novogyne, and Estradot™, licensed to Novartis) and combination estrogen/progestin transdermal delivery systems (including CombiPatch™, licensed to Aventis, and Estalis®, licensed to Novartis). With a range of additional products in development, including MethyPatch™, Noven is committed to becoming the world's premier developer, manufacturer and marketer of transdermal and transmucosal drug delivery systems. For additional information on Noven, visit the company's web site at For information on Noven's Vivelle® and Vivelle-Dot™ products, visit

Forward looking statements contained in this release are qualified by and subject to the risks and uncertainties specified in Noven's most recent filings with the Securities and Exchange Commission, including the risk that results for future periods may be less than anticipated because of, among other factors, competitive market conditions affecting Noven's estrogen patches and other products, the inability to develop or in-license new products, delays in the launch of Estalis® by Novartis in certain countries, delays in the launch of Estradot™ abroad due to the failure to receive regulatory approvals or other factors, delays in filing a MethyPatch™ New Drug Application, and the inability of Noven to receive FDA approval to market any of MethyPatch™, its androgen patch, or its developmental HRT patches and/or to successfully commercialize such products.

Investor & Media Contact:
Joseph C. Jones
Vice President – Corporate Affairs
Noven Pharmaceuticals, Inc.