AVANIR Licenses Docosanol 10% Cream in Japan

AVANIR Pharmaceuticals (AMEX:AVN) announced today that
it has signed an exclusive agreement with a leading importer and
distributor of pharmaceuticals in Japan to develop and market AVANIR's
docosanol 10% cream (docosanol) as a treatment for cold sores in
Japan.
   "Under the terms of the agreement, our Japanese partner will be
responsible for all expenses incurred obtaining marketing approval, as
well as the manufacture, distribution and promotion of the product in
the territory. The agreement provides for AVANIR to receive a license
fee, development and sales milestones, and a royalty on all product
gross sales," said Marty Emanuele, Ph.D., Vice President of Business
Development and Licensing at AVANIR. "We look forward to a long and
productive partnership."
   Docosanol is sold in North America under the brand name Abreva(R)
by AVANIR's licensee, GlaxoSmithKline Consumer Healthcare, and is the
only cold sore product approved by the U.S. Food and Drug
Administration (FDA) available without a prescription.
   AVANIR Pharmaceuticals is focused on developing and
commercializing novel therapeutic products for the treatment of
chronic diseases. AVANIR's product candidates address therapeutic
markets that include central nervous system and cardiovascular
disorders, inflammation, and infectious diseases. AVANIR previously
announced positive results in the second of two required Phase III
clinical trials of Neurodex(TM), an investigational new drug for the
treatment of pseudobulbar affect. Additionally, AVANIR has initiated a
Phase III clinical trial for Neurodex as a potential treatment for
diabetic neuropathic pain, a second indication for Neurodex. AVANIR
has active collaborations with two international pharmaceutical
companies: Novartis International Pharmaceutical Ltd. for the
treatment of inflammatory disease and AstraZeneca for the treatment of
cardiovascular disease. The Company's first commercialized product,
Abreva(R), is marketed in North America by GlaxoSmithKline Consumer
Healthcare and is the leading over-the-counter product for the
treatment of cold sores. Further information about AVANIR can be found
at www.avanir.com.

   Except for the historical information presented in this press
release, matters discussed herein contain forward-looking statements
that are subject to certain risks and uncertainties that could cause
actual results to differ materially from any future results,
performance or achievements expressed or implied by such statements.
Statements that are not historical facts, including statements that
are preceded by, followed by, or that include such words as
"estimate," "anticipate," "believe," "plan" or "expect" or similar
statements are forward-looking statements. There can be no assurance
that regulatory approval efforts will succeed, that docosanol 10%
cream will receive required regulatory clearance, or that even if such
regulatory clearance is received, that such products would ultimately
achieve commercial success. Risks and uncertainties for AVANIR
Pharmaceuticals also include the risks set forth in AVANIR's most
recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q
and from time-to-time in other publicly available information
regarding the Company. Copies of such information are available from
AVANIR upon request. The company disclaims any intent or obligations
to update these forward-looking statements.