BioChem Pharma Sees Advances In Its Pipeline For 1997.

LAVAL, Quebec, Canada--(BUSINESS WIRE)--January 7, 1997-- "Building on the success of our flagship drug discovery, 3TC(R) (Epivir(TM)), a leading HIV/AIDS treatment, BioChem Pharma is focused on advancing more compounds toward clinical testing in the prevention and treatment of disease in 1997," said today Dr. Francesco Bellini, President and CEO of BioChem Pharma, at the 15th Annual Hambrecht and Quist Healthcare Conference in San Francisco today. Bellini outlined several major initiatives that are underway in both the therapeutics and vaccines divisions of the company.

"We are evaluating a number of compounds that hold promise for treatment for those suffering from cancer, AIDS-related diseases, and new vaccines to prevent the flu, bacterial meningitis, and streptococcal pneumonia" Bellini said. "All of these vaccine and drug developments are part of a larger ongoing effort to lay the foundation for BioChem Pharma to become a leader in the research and development of new therapeutics and vaccines in the years ahead."

VACCINES

IAF BioVac Inc., the vaccine subsidiary of BioChem Pharma, last month began its Phase I, randomized, controlled clinical trial for a new influenza vaccine derived from cell culture. The study, which is being led by Dr. Scott Halperin, was initiated on December 9th at the clinical trials center of the IWK-Grace Health Center in Halifax, Nova Scotia, Canada.

One hundred and twenty (120) adults between the ages of 18 and 50 are participating in the six week single center trial. Participants have been divided into two groups -- one receiving the experimental vaccine and the other will receive a commercially available flu vaccine. Initial results are expected toward the end of March of 1997.

"We are very excited about the potential of this vaccine - - not just to prevent the flu but also because of the innovative new process we are developing," said Dr. Claude Vezeau, President, IAF BioVac Inc. "This new process will allow BioVac to produce superior vaccines more rapidly," Vezeau added. "If all goes according to plan, we would be prepared to roll out Phase II/ III trials in the summer of 1997.

In addition to the new flu vaccine, BioVac also plans to file an IND for its bacterial meningitis recombinant protein vaccine in the first half of 1997 and another IND for its streptococcal pneumonia vaccine in the second half of 1997. "This is just a sample of what we will be doing in the vaccine market. We intend to play an increasingly significant role in the years ahead in this vital arena," Bellini stated.

CANCER

Clinical trials will begin toward the end of this month on a new compound, BCH-4556, a novel anticancer agent, that holds promise in treating a variety of cancers. The Phase I clinical trial in Canada will involve some 20 to 35 advanced stage cancer patients.

The BCH-4556 trials will be conducted by BioChem Pharma. "In the therapeutic field, this is the first time we are conducting clinical trials independently of a larger multinational company," according to Dr. Bellini. "This very exciting step for BioChem is another milestone in the development and evolution of our fast growing company." The BCH-4556 Phase I trial is being carried out under the direction of the National Cancer Institute of Canada Clinical Trial Group, with Dr. Malcolm Moore, of Princess Margaret Hospital in Toronto and Dr. Karl Belanger of Notre- Dame Hospital in Montreal as principal investigators. BioChem plans to file an IND in the US in the first quarter of this year.

PAIN MANAGEMENT

Another effort includes the development of a compound, BCH- 3963, for the treatment of severe pain. Targeted as an alternative to morphine, this compound comes from a novel class of peripheral-acting opioid analgesics pioneered by BioChem Pharma. BCH-3963 has recently shown to have a number of advantages over its predecessor BCH-2687. For this reason, Astra AB, BioChem's partner in this endeavor, and BioChem have decided to pursue an IND filing on BCH- 3963 instead of BCH-2687, as previously planned. The BCH-3963 IND filing is planned for the end of 1997.

OTHER MAJOR INITIATIVES

Efforts are ongoing within BioChem Pharma to build Canadian franchises in both the antiviral and anti-cancer areas. In that context, BioChem has a licensing agreement in Canada for two products being developed for the treatment of AIDS-related conditions in conjunction with the Chicago- based company, Unimed. One agent, Nitazoxanide (NTZ), is in Phase III trials to determine its efficacy against cryptosporidiosis, a life threatening illness for many people living with AIDS. The other compound, Dihydrotestosterone (DHT)-gel, is in Phase II, and is being studied for its efficacy in the treatment of AIDS wasting syndrome.

There are also additional anticancer compounds, in various stages of development, to which the company has licensed the Canadian rights. These include the anticancer compound, VX-710, in Phase II, licensed for Canada from the Cambridge, MA (US)-based company Vertex. There are also two anticancer agents licensed for Canada from the Seattle- based company, Cell Therapeutics Inc. that are in development. One agent, lisofylline, is in Phase III and the other agent, CT-2584, is in Phase I clinical development.

THE FUTURE

"These research initiatives (reviewed above) -- and many others that are underway -- underscore BioChem's commitment to remain an innovator," Bellini declared. "As we enter our next decade, we will maintain our dedication to innovation through increased investments toward research and development."

BioChem Pharma is an international company dedicated to the research, development and commercialization of innovative products for the prevention, detection and treatment of human diseases. The company, celebrating it's tenth anniversary, lists its common shares on the Montreal and Toronto Stock Exchanges (BCH) and on the NASDAQ stock market (BCHXF).

BioChem Pharma news releases and other company information can now be found on the World Wide Web at: http ://www.biochem-pharma.com. -0-

This press release contains forward-looking statements which reflect the company's current expectation regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors including the success of the company's research strategy, the applicability of the discoveries made therein, the successful and timely completion of clinical studies and the uncertainties related to the regulatory approval process. Investors should consult the company's ongoing quarterly filings, annual reports and 20-F filings for additional information on risks and uncertainties relating to these forward-looking statements.

CONTACT: BioChem Pharma Inc.

Christine Lennon

Vice President, Corporate Communications

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