Covidien Announces License Agreement with Nuvo Research Inc.

Goal to Expand Covidien`s Entry into Branded Pain Management Market
ST. LOUIS--(Business Wire)--
Covidien (NYSE:COV), a leading global provider of healthcare products, today
announced that its Pharmaceutical Products business unit has entered into a
license and development collaboration with Nuvo Research Inc. (TSX:NRI), a
Canadian drug development company. The agreement is aimed at expanding
Covidien`s entry into the branded pain management market.

Covidien is the largest supplier of controlled pain medications in the United
States based on number of prescriptions. Nuvo develops transdermal and topical
therapeutic products designed to reduce side effects.

The companies` collaboration encompasses two topical formulations of diclofenac,
a non-steroidal anti-inflammatory drug (NSAID), the first of which is currently
under U.S. Food and Drug Administration (FDA) review. In February 2009, the FDA
accepted Nuvo`s resubmission of its application for approval of the first
formulation as a complete response to a December 28, 2006, approvable letter
from the FDA. The FDA is scheduled to advise Nuvo of its decision on the
application by August 5, 2009. The second formulation is currently in
development.

The first topical formulation combines a transdermal carrier, dimethyl
sulfoxide, with diclofenac sodium, a leading NSAID. It is the subject of a
research article appearing in the June 2009, edition of PAIN, the journal
published by the International Association for the Study of Pain.

Under the license agreement between Nuvo and Mallinckrodt, Inc., a subsidiary of
Covidien, Nuvo will receive a one-time upfront payment and could receive
additional development and sales milestone payments over the next several years.
The one-time upfront payment will be expensed in Covidien`s fiscal third
quarter. In addition, Covidien will pay Nuvo a royalty on sales of products
developed and commercialized under this license agreement. Covidien anticipates
launch of the first product from this agreement in the first half of calendar
2010.

Covidien will be responsible for all commercialization activities, including
marketing, selling and medical education. Nuvo will own and maintain the
intellectual property and will be responsible for manufacturing.

"Building on more than a century of pain treatment experience, Covidien focuses
on providing patients with access to advanced medications that expand the limits
of pain therapy by combining proven drugs with innovative delivery systems. We
are pleased to be collaborating with Nuvo Research on topical formulations of
diclofenac and the opportunity to expand our branded pharmaceutical portfolio,"
said Timothy R. Wright, President, Pharmaceutical Products and Imaging
Solutions, Covidien. "While we face difficult comparisons in 2010 in our
Pharmaceutical business, we are excited about the potential of these products to
accelerate our performance in 2011 and beyond."

About Covidien

Covidien is a leading global healthcare products company that creates innovative
medical solutions for better patient outcomes and delivers value through
clinical leadership and excellence. Covidien manufactures, distributes and
services a diverse range of industry-leading product lines in four segments:
Medical Devices, Imaging Solutions, Pharmaceutical Products and Medical
Supplies. With 2008 revenue of nearly $10 billion, Covidien has more than 41,000
employees worldwide in 59 countries, and its products are sold in over 140
countries. Please visit www.covidien.com to learn more about our business.

Forward-Looking Statements

Any statements contained in this communication that do not describe historical
facts may constitute forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Any forward-looking statements
contained herein are based on our management's current beliefs and expectations,
but are subject to a number of risks, uncertainties and changes in
circumstances, which may cause actual results or Company actions to differ
materially from what is expressed or implied by these statements. The factors
that could cause actual future results to differ materially from current
expectations include, but are not limited to, our ability to effectively
introduce and market new products or keep pace with advances in technology, the
reimbursement practices of a small number of large public and private insurers,
cost-containment efforts of customers, purchasing groups, third-party payers and
governmental organizations, intellectual property rights disputes, complex and
costly regulation, including healthcare fraud and abuse regulations,
manufacturing or supply chain problems or disruptions, rising commodity costs,
recalls or safety alerts and negative publicity relating to Covidien or its
products, product liability losses and other litigation liability, including
legacy Tyco-related litigation, divestitures of some of our businesses or
product lines, our ability to execute strategic acquisitions of, investments in
or alliances with other companies and businesses, competition, risks associated
with doing business outside of the United States, foreign currency exchange
rates, issues related to our existing material weakness in accounting for income
taxes or potential environmental liabilities. These and other factors are
identified and described in more detail in our filings with the SEC. We disclaim
any obligation to update these forward-looking statements other than as required
by law.

Covidien
Stephen Littlejohn, 314-654-6595
Vice President, Communications
Pharmaceutical Products and Imaging Solutions
stephen.littlejohn@covidien.com
or
Coleman Lannum, CFA, 508-452-4343
Vice President
Investor Relations
cole.lannum@covidien.com
or
Bruce Farmer, 508-452-4372
Vice President
Public Relations
bruce.farmer@covidien.com
or
Brian Nameth, 508-452-4363
Director
Investor Relations
brian.nameth@covidien.com

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