Ardana Acquires Zentaris Assets In €28 Million Deal To Secure Portfolio Of Products In Clinical Development

Edinburgh, UK, 10 July 2002

Ardana Bioscience, the pharmaceutical company which specialises in reproductive health, has acquired the French company Europeptides (EEIG) and a substantial IP (intellectual property) portfolio from Degussa/Zentaris in a Euro 28 million plus royalties deal which secures Ardana a significant portfolio of products in clinical development.

Through the deal Ardana gains global rights to a proprietary and superior formulation of the prostate cancer treatment Leuprorelin* which is about to enter Phase II clinical trials. Ardana also acquires the European and North American rights to Teverelix a gonadotrophin releasing hormone (GnRH) antagonist which is about to enter a second Phase I clinical trial for a slow release formulation and that may have efficacy in contraception, prostatic disease, infertility and endometriosis/menstrual disorders.

Ardana has also acquired an innovative pre-clinical portfolio which includes a candidate for erectile dysfunction and an orally-active compound which stimulates growth hormone secretion, both of which could enter clinical trials within 12 months. In addition Ardana acquires a series of new compounds including ghrelin antagonists and some with relevance to cardiac disorders.

"Europeptides represents an excellent strategic fit" commented Simon Best, Ardana's Chief Executive Officer. "Its compounds complement our existing product portfolio in terms of therapeutic relevance and stage of development."

"Through the acquisition we broaden our pre-clinical research interests and gain a portfolio of compounds in clinical trials which will facilitate partnering and commercialization opportunities leading to a revenue stream within the next 12-24 months. Ardana is focused on obstetrics, sexual dysfunction, contraception, prostatic disease and endometriosis/menstrual disorders. We have an extensive, promising pre-clinical research programme and at least one of our own products will enter the clinic next year. In addition to enhancing our strategic product portfolio, this acquisition strengthens our trading assets and gives Ardana access to platform formulation/ delivery technologies which we will apply to our products and out license."

"Tomorrow is World Population Day and I am delighted to announce this deal, which will enhance our ability to improve the reproductive health of men and women, in a week when world attention is focused on population issues"

"In view of its experienced management team and its scientific expertise in endocrinology, we believe that Ardana is an ideal company to continue development work." Commented Professor Dr Jürgen Engel, Chief Executive Officer of Zentaris AG.

The Euro 28 million comprises an initial up front Euro 6.25 million payment for the company, plus Euro 21.75 million in future milestone payments.

ENDS

For more information contact:

Ardana - Simon Best 44 (0) 131 226 8553

Nicki Brimicombe - NB Public Relations 44 (0) 1883 732353

* Leuprorelin is a $1.4 Billion drug which recently came off patent. It is normally delivered as a monthly or three monthly injection. Europeptides has used its formulation expertise to develop a version which is expected to deliver a four to six month duration of release. This compound will shortly enter Phase II clinical trials.

Notes for Editors

Ardana Bioscience was created in July 2000 to commercialise research by the Medical Research Council (MRC)'s Human Reproductive Sciences Unit (HRSU) in Edinburgh, Scotland which has been at the forefront of this area of research for the last 28 years. The MRC employs nearly 100 staff at the Unit which currently receives total annual funding of £3.8 million.

Europeptides is a Research and Development arm of Zentaris, Frankfurt-Am-Main, Germany. Its main focus has been on the research and development of peptides and delivery systems for peptides to modulate the GnRH and Growth-Hormone Receptor. They have also conducted a significant program on non-peptide Growth Hormone Secretagogues.

Zentaris AG

Biopharma company Zentaris AG was spun off from the Degussa Group at the beginning of 2001. The company harnesses the decades of expertise built up by the Degussa Group Pharmaceuticals Division, specifically in endocrinology (hormone research) and oncology (tumour research). Zentaris currently has about 70 staff who develop innovative products for new patient-friendly therapies. The main focus is on the treatment of benign and malignant tumours. The company integrates basic research and clinical development for this purpose.

Funding

Since its inception in July 2000 Ardana has raised £14.6 million (US$21 million approx.) in two funding rounds. Ardana investors include Merlin Biosciences Limited, MVM Limited (MVM), ABN-AMRO Capital, 3i, Mitsubishi Corporation and Green Highlander, LLC.

MRC

The Medical Research Council (MRC), established in 1913, aims to improve health by promoting research into all areas of medical and related science. It is funded mainly by the government but is independent in its choice of which research to support. About half of the MRC's expenditure of approximately £350 million is invested in over 50 of its Institutes and Units, where it employs its own research staff. The remaining half goes in the form of grant support and training awards to individuals and teams in universities.

MRC Human Reproductive Sciences Unit (HRSU)

Research at the MRC Human Reproductive Sciences Unit is undertaken at a molecular, cellular and endocrine level to further understand the regulation of the human reproductive system, with particular attention to mechanisms that might be exploited for purposes of contraception or account for infertility, menstrual cycle abnormalities and disorders of pregnancy and foetal development. Immunological, hormonal and pharmacological approaches for the reversible regulation of human fertility are also under investigation. The Unit and the University of Edinburgh Department of Obstetrics and Gynecology combine to form the Centre for Reproductive Biology (CRB), a collaborative institution within the WHO Human Reproduction Programme and the Rockefeller Foundation Contraception 21 Initiative.

Web Site

For more information on Ardana, visit the web site at www.ardana.co.uk

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