EXHIBIT 99.1


[BIOSANTE LOGO]                                   BIOSANTE PHARMACEUTICALS, INC.
                                                  111 Barclay Boulevard
                                                  Lincolnshire, Illinois 60069
                                                  www.biosantepharma.com

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FOR IMMEDIATE RELEASE                                                  AMEX: BPA

                BIOSANTE PHARMACEUTICALS ANNOUNCES $17.7 MILLION
                        PRIVATE PLACEMENT OF COMMON STOCK


LINCOLNSHIRE, Illinois (May 12, 2004) -- BioSante Pharmaceuticals, Inc. (Amex:
BPA) today announced that it has entered into definitive agreements with
institutional and other accredited investors with respect to the private
placement of 2,949,000 shares of its common stock at a purchase price of $6.00
per share, for gross proceeds of $17,694,000. Investors also will receive
warrants to purchase 442,350 shares of common stock at an exercise price of
$7.00 per share. Leerink Swann & Company served as placement agent for the
transaction

The transaction is expected to be consummated within the next few days following
satisfaction of certain customary closing conditions contained in the definitive
transaction agreements, including approval of an additional listing application
with the American Stock Exchange.

"We are pleased by this exciting private placement, and are gratified to welcome
a new group of institutional investors who we believe will help us increase the
company's visibility in the investment community," said Stephen M. Simes,
BioSante's president and chief executive officer. "The additional cash will be
used to implement our plan to build a valuable portfolio of hormone therapy
products and continue development of our CAP nanotechnology. Including the
proceeds from this placement, we will have about $25 million in the bank, which
is equal to more than two years of our cash requirements."

The net proceeds to BioSante will be approximately $16.5 million. BioSante
intends to use the net proceeds to fund the late stage development of the
company's new product pipeline, including Bio-E-Gel(TM), currently in its
pivotal Phase III clinical trial to treat menopausal symptoms, and LibiGel(TM),
soon to complete a Phase II clinical trial for Female Sexual Dysfunction, as
well as for general corporate purposes.

The securities offered in this placement have not been registered under the
Securities Act of 1933, as amended, or state securities laws, and cannot be
offered or sold in the United States absent registration with the Securities and
Exchange Commission (SEC) or an applicable exemption from the registration
requirements. As part of the transaction, the company has agreed to file a
registration statement with





the SEC covering the resale of the shares of common stock issued in the
offering, including the shares of common stock issuable upon exercise of the
warrants. This news release is neither an offer to sell nor a solicitation of an
offer to buy any of the securities discussed herein and is being issued under
Rule 135c of the Securities Act of 1933.

ABOUT BIOSANTE PHARMACEUTICALS, INC.
BioSante is developing a pipeline of hormone therapy products to treat both men
and women. BioSante's hormone therapy products are gel formulations for
transdermal administration that deliver bioidentical estradiol and testosterone.
Symptoms treated with hormone therapy in men include impotence, diminished sex
drive, muscle weakness and osteoporosis. Symptoms in menopausal women include
hot flashes, vaginal atrophy, decreased libido and osteoporosis. The estrogen
and testosterone markets in the United States alone account for over $2.5
billion in annual sales.

The company also is developing its calcium phosphate nanotechnology (CAP) for
novel vaccines, including biodefense vaccines for toxins such as anthrax and
ricin, and drug delivery systems. Additional information is available online at
www.biosantepharma.com.

This news release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. The statements regarding
BioSante contained in this press release that are not historical in nature,
particularly those that utilize terminology such as "may," "will," "should,"
"likely," "expects," "anticipates," "estimates," "believes" or "plans," or
comparable terminology, are forward-looking statements. Forward-looking
statements are based on current expectations and assumptions, and entail various
risks and uncertainties that could cause actual results to differ materially
from those expressed in such forward-looking statements. Important factors known
to BioSante that cause actual results to differ materially from those expressed
in such forward-looking statements are the difficulty of developing
pharmaceutical products and especially of new vaccines, obtaining regulatory and
other approvals and achieving market acceptance, and other factors identified
and discussed from time to time in BioSante's filings with the Securities and
Exchange Commission, including those factors discussed on pages 18 to 25 of
BioSante's Form 10-KSB, which discussion also is incorporated herein by
reference.

FOR MORE INFORMATION, PLEASE CONTACT:

Phillip B. Donenberg, CFO
847-478-0500 ext 101
donenber@biosantepharma.com


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