As a result of our acquisition of Éclat Pharmaceuticals, L.L.C., we have implemented an altered business model allowing Flamel to blend novel, high-value internally developed products with its leading drug delivery capabilities and to commercialize niche branded and generic pharmaceutical products in the U.S.  Éclat Pharmaceuticals, L.L.C., which has focused on pursuing FDA approvals through the 505(b)(2) regulatory pathway, adds marketing and licensing knowledge of the commercial and regulatory process in the U.S and EU, which we believe will enhance the ability of the Company to identify potential product candidates for development, leverage new opportunities for the application of our drug delivery platforms, and to license and market products in the U.S and EU.

Flamel Technologies proprietary drug delivery platforms are Micropump® (oral sustained release platform) and its derivatives LiquiTime® and Trigger Lock™ and Medusa™ (long acting injectable platform).

By adopting this revised strategy, the Company makes itself less dependent in the future on the often, changing strategies of its partners.

Nevertheless, Flamel is still exploring development, supply and licensing opportunities for its drug delivery platforms with carefully selected third parties, but will not rely completely on those partnerships to create revenue and profit opportunities.