Astra Merck Inc. and Lexin Pharmaceutical Corporation announce agreement to test acute pancreatitis therapy; Astra Merck agrees to fund development.

and Lexin Pharmaceutical Corporation announced today that they have signed an evaluation and option agreement to test LEX032, Lexin's recombinant human protein, to determine its potential for the treatment of acute pancreatitis, or inflammation of the pancreas.

Under the terms of the agreement, Astra Merck will fund Lexin's development work by making an upfront payment for the animal studies necessary to demonstrate the initial performance of LEX032 in limiting pancreatic injury. In return, Astra Merck will receive an option to obtain rights to manufacture and market Lexin's product. If Astra Merck exercises its option, the parties agree to negotiate terms and conditions for development and commercialization.

Over 200,000 patients were treated for acute pancreatitis in non-federal hospitals in 1992; over 2,000 patients die from acute pancreatitis annually. Acute pancreatitis, or inflammation of the pancreas, can be caused by alcohol abuse, gallstones, increased triglyceride or calcium levels in the blood, viral and bacterial infections, trauma or drugs. In acute pancreatitis, the enzymes of the pancreas begin to digest the tissues of the gland itself in a process called autodigestion. The disease is marked by intense, constant pain in the upper abdomen that may radiate through to the back, chest or flank, along with nausea and vomiting. Pancreatitis can range initially from abdominal discomfort, which can subside within a week, to severe acute pancreatitis, which requires hospitalization and which can be life-threatening.

At this time, treatment of acute pancreatitis is largely supportive. Patients eliminate oral intake, begin intravenous hydration and take analgesics. Pharmaceutical approaches to inhibit pancreatic enzymes such as cimetidine, atropine, somatostatin, aprotinin and gabexate have not improved the outcome of the disease.

LEX032 represents a new approach to the treatment of pancreatitis. LEX032 was designed to inhibit certain pancreatic enzymes and to reduce the destructive effects of white blood cells (neutrophils) that cause inflammation in the damaged pancreas.

These combined effects reduce damage to the organ and allow the body to begin the healing process sooner. Studies in animal models of body organ damage have demonstrated very promising results. The use of LEX032 is expected to reduce the time patients spend in hospitals with pancreatitis. The product may also be used prophylactically in certain surgical procedures to reduce changes of pancreatic damage.

Wayne P. Yetter, President and CEO of Astra Merck stated, "This product has the potential to be a breakthrough drug for pancreatitis by actually inhibiting some of the more damaging pancreatic enzymes. There are no other products available with the potential of LEX032 to actually reverse the disease process. The agreement with Lexin Pharmaceuticals also is a great fit with our company's commitment to develop and market products in the digestive disease therapeutic area."

Lexin President and CEO Jerry B. Hook stated, "We are delighted to work with our colleagues at Astra Merck in the development of LEX032. Astra Merck scientists and clinicians are skilled in efficient and focused drug development in gastrointestinal diseases and their sales and marketing team is excellent. Astra Merck will help Lexin maximize our opportunities to bring this exciting opportunity to practicing physicians."

Astra Merck, previously a unit of Merck & Co., Inc., was reorganized as a separate company on November 1, 1994, owned equally by Merck and Astra AB. The company markets an anti-secretory medication, Prilosec(R) (omeprazole), and the cardiovascular drugs Plendil(R) (felodipine) and Tonocard(R) (tocainide HCL).

Lexin Pharmaceutical Corporation is a development stage bio-pharmaceutical company based in Horsham, Pa. Lexin's pipeline includes natural and modified human proteins licensed from the University of Pennsylvania designed to treat serious inflammatory and coagulative diseases. The company recently signed a collaborative research agreement with Wichita State University to develop small molecule drugs that will strengthen Lexin's comprehensive portfolio of proprietary anti-inflammatory compounds.

QED Technologies, a life science consulting firm in Malvern, Pa., acted as an advisor to Lexin in connection with the transaction.

CONTACT: ASTRA MERCK, INC.

Catherine Kernen, 610/695-1230

or

LEXIN PHARMACEUTICAL CORPORATION

Jerry Hook, Ph.D., 215/442-1700