Dr. Albert Friesen reports

MEDICURE ANNOUNCES SIGNING OF ASSET PURCHASE agrEEMENT WITH CANAM BIORESEARCH INC. FOR ACQUISITION OF INTELLECTUAL PROPERTY

Medicure Inc. has signed an asset purchase agreement with CanAm Bioresearch Inc. for the acquisition of the patent and intellectual property related to the discovery of new chemical entities that can be developed for therapeutic use (the proposed transaction).

Medicure believes that the new chemical entities hold promise to provide improvements over existing lead compounds in alignment with the treatment of diseases being targeted by Medicure, and could provide significant value upon completion of all required non-clinical and clinical studies and regulatory approval. These new chemical entities are not being applied in Medicure's current phase 3 study evaluating the use of MC-1 for the prevention or treatment of seizures associated with pyridox(am)ine 5'-phosphate oxidase (PNPO) deficiency.

Key terms of the agreement

Pursuant to the agreement, Medicure International Inc., a wholly owned subsidiary of Medicure, has agreed to acquire, subject to the conditions contained in the agreement, all of the assets of CanAm as they relate to the business of developing pyridoxal five-foot-phosphate analogues (P5P analogues), the processes for their preparation, compositions containing P5P analogues, and methods of medical treatment containing P5P analogues (the assets). In consideration for the assets, Medicure has agreed to pay to CanAm a $100,000 cash payment on the closing date, in addition to the following milestone payments: (i) $500,000, earned upon Medicure filing its first investigational new drug application (IND application) related to P5P analogues; (ii) $250,000, earned upon the Medicure filing its first new drug application (NDA) related to P5P analogues; and (iii) $500,000, earned upon Medicure obtaining an NDA approval for P5P analogues.

In addition, Medicure shall pay to CanAm 10 per cent of net proceeds received with respect to transactions relating to the assets, including: (i) the sale or transfer of all or substantially all of the assets to a third party purchaser who is not an affiliate of Medicure; (ii) any license to develop, commercialize, use, offer for sale, sell, import, export or exploit P5P analogues up to a maximum value payable to CanAm of $20-million; and (iii) the sale of an United State Food and Drug Administration priority review voucher obtained in connection with the development of P5P analogues.

In the event Medicure retains a contract research organization (CRO) to provide services related to development of P5P analogues, CanAm, a CRO, would be entitled to tender a bid for such services, in addition to having an opportunity to match quotes for CRO services provided by third party organizations.

In the event that Medicure does not file an IND application within seven years from the closing date of the proposed transaction, CanAm shall have the option at any time after such date to repurchase the assets from Medicure, at a price equal to the aggregate of all expenses incurred by Medicure in connection with the development of P5P analogues, but, in any event, not exceeding the sum of $6.5-million (U.S.).

Closing of the proposed transaction is subject to a number of terms and conditions, including without limitation, CanAm completing certain intellectual property filings with respect to the patent application it holds for P5P analogues, the parties obtaining all necessary consents, orders and regulatory approvals, including approval of the TSX Venture Exchange, and certain other customary closing conditions.

All dollars are Canadian dollars unless otherwise noted.

About CanAm

Founded in 2000, CanAm is a privately held medicinal chemistry contract research organization providing drug discovery services, and is located in Winnipeg, Canada.

As Medicure's CEO (chief executive officer) and chairman of the board of directors, Dr. Albert D. Friesen, is the president and shareholder of the parent company of CanAm, the proposed transaction will constitute a related party transaction in accordance with Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). The proposed transaction will be exempt from the formal valuation and the minority shareholder approval requirements of MI 61-101, as no securities of Medicure are listed or quoted on any of the specified markets listed in Section 5.5(b) of MI 61-101 and, at the time the proposed transaction was agreed to, neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the proposed transaction, insofar as it involves interested parties, exceeded 25 per cent of Medicure's market capitalization.

No finder's fee is expected to be payable in connection with the proposed transaction.

Due to Dr. Friesen's involvement with CanAm, a special committee of independent directors was established to consider the proposed transaction without conflict of interest and to negotiate the terms of the agreement. The special committee unanimously determined that the proposed transaction is in the best interests of Medicure and recommended that the board of directors of Medicure approve the agreement.

About Medicure Inc.

Medicure is a company focused on the development and commercialization of pharmaceuticals and health care products for patients and prescribers in the United States market. The present focus of the company is the marketing and distribution of Aggrastat (tirofiban hydrochloride) injection and Zypitamag (pitavastatin) tablets in the United States, where they are sold through the company's United States subsidiary, Medicure Pharma Inc. Medicure also operates Marley Drug Inc., a pharmacy subsidiary servicing all 50 states, Washington, D.C., and Puerto Rico. Marley Drug is committed to improving access to medications for all Americans together with exceptional customer service and free home delivery.

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