Noven Announces 2000 First Quarter Financial Results

Reports Net Income of $.08 Per Share

Vivelle® Product Family Claims Number Two Spot in U.S. Estrogen Patch Market

-- Noven Pharmaceuticals, Inc. (NASDAQ:NOVN) today announced financial results for the quarter ended March 31, 2000.

For the quarter, Noven reported net income of $1,827,000, or $.08 per share, compared to $716,000, or $.03 per share, for the first quarter of 1999. Revenues were $9,603,000 compared to $7,477,000 for the same quarter in 1999. As of March 31, 2000, cash and cash equivalents were $15,247,000 compared to $15,338,000 as of December 31, 1999.

Novogyne Pharmaceuticals, Noven's joint venture with Novartis, contributed $477,000 to Noven's first quarter financial results. The agreements governing the joint venture provide for an annual preferred return of $6.1 million to Novartis, followed by an allocation of income between Novartis and Noven based on a formula. The formula provides that Noven's share of Novogyne's income increases as Novogyne product sales increase, subject to a maximum of 49%. Novogyne's net income for the first quarter of 2000 was more than sufficient to pay Novartis its annual preferred return. Therefore, Noven and Novartis will share Novogyne's net income for the balance of the year in accordance with the formula.

"Noven is off to a great start in 2000," said Robert Strauss, Noven's President and Chief Executive Officer. "We are particularly pleased with the success of Vivelle-Dot™, the smallest estrogen patch in the world. Physicians and patients appreciate its small size, related comfort, and excellent adhesion. Vivelle-Dot has helped the Vivelle® product family increase its share of the U.S. estrogen patch market from roughly 15% to over 26% in less than one year. In the hands of the talented Novogyne sales force, the Vivelle family has surpassed Estraderm® to become the second most prescribed estrogen patch in the U.S. In fact, combined Vivelle-Dot and Vivelle sales were so strong that Novartis' preferred profit distribution for 2000 was easily satisfied in the first quarter. In 1999, we didn't reach that milestone until the fourth quarter. For the balance of the year, Noven will receive a significant portion of every dollar earned by Novogyne, in addition to the royalties and fees that we ordinarily receive as the licensor and manufacturer of the Vivelle products."

A telephone conference among management and equity analysts relating to Noven's financial results will be broadcast live via the Internet at www.noven.com beginning at 5:00 p.m. Eastern time today, May 3. Thereafter, a rebroadcast of the call will be accessible at the same site. In addition, a taped replay of the conference call will be available by telephone from May 3 at 8:00 p.m. Eastern time to May 5 at 11:59 p.m. by calling 800-475-6701 (from within the U.S.) or 320-365-3844 (from outside the U.S.) and entering the access code 516111.

Noven Pharmaceuticals, Inc., headquartered in Miami, Florida, is a leader in the development of transdermal and transmucosal drug delivery technologies and products. Noven's existing products include advanced estrogen transdermal delivery systems (including Vivelle-Dot™, licensed to Novogyne); combination estrogen/progestin transdermal delivery systems (including CombiPatch™, licensed to Aventis S.A., and Estalis®, licensed to Novartis Pharma AG); and the first transmucosal patch delivery system approved by the FDA (DentiPatch®). With a range of additional products in development, including MethyPatch™ (transdermal methylphenidate system), Noven is committed to becoming the world's premier developer, manufacturer and marketer of transdermal and transmucosal drug delivery systems.

Estraderm® is a registered trademark of Novartis.



Statement of Operations Data:              Three months ended
(amounts in thousands, except                    March 31,
per share amounts)                    --------------------------------
                                         2000                 1999
                                      -----------          -----------
                                      (Unaudited)          (Unaudited)
Revenues:
     Product sales                      $  9,456             $  7,421
     License revenue                         147                   56
                                      -----------          -----------
     Total revenues                        9,603                7,477

Expenses:
     Cost of products sold                 4,511                3,244
     Research and development              1,825                1,657
     Marketing, general & administrative   2,082                1,903
                                      -----------          -----------
     Total  expenses                       8,418                6,804

Equity interest in Novogyne                  477                    -
Interest income, net                         200                   52
                                      -----------          -----------
Income before taxes                        1,862                  725

Income tax provision                          35                    9
                                      -----------          -----------
Net income                              $  1,827             $    716
                                      ===========          ===========

Basic earnings per share                $   0.08             $   0.03
                                      ===========          ===========
Diluted earnings per share              $   0.08             $   0.03
                                      ===========          ===========
Weighted average number of
 common shares outstanding:
        Basic:                            21,682               21,531
                                      ===========          ===========
        Diluted:                          22,827               21,730
                                      ===========          ===========


                                                   As of
                                        March 31,         December 31,
 Balance Sheet Data:                      2000                1999
                                      -----------         ------------
                                       (Unaudited)          (Audited)

     Cash and short-term equivalents    $ 15,247             $ 15,338

     Working capital                    $ 19,037             $ 16,581

     Net property and equipment         $ 15,241             $ 15,329

     Investment in Novogyne             $  8,842             $  8,365

     Total assets                       $ 58,642             $ 56,888

     Deferred license revenue           $  7,881             $  8,028

     Shareholders' equity               $ 42,409             $ 39,393

Contact:
James B. Messiry
Chief Financial Officer
305-253-1916

Forward looking statements contained in this release are qualified by and subject to the risks and uncertainties specified by Noven in its most recent filings with the Securities and Exchange Commission, including the risk that Novogyne's quarterly earnings for the remainder of 2000 may not equal its earnings for the first quarter due to, among other things, lower sales of the Vivelle family of products.