BioCryst Receives Milestone Payment From Ortho-McNeil Pharmaceutical, Inc. in Connection With the Start of Phase II Human Testing of Oral Influenza Inhibitor.

BIRMINGHAM, Ala.--(BW HealthWire)--June 23, 1999--

BioCryst Pharmaceuticals, Inc. (Nasdaq NM: BCRX) today announced that it has received a $2 million milestone payment from Ortho-McNeil Pharmaceutical, Inc. as a part of its agreement with Ortho-McNeil and the R.W. Johnson Pharmaceutical Research Institute (PRI) in connection with the initiation of Phase II clinical testing in the United States of an oral influenza neuraminidase inhibitor designed to treat and prevent viral influenza.

"We are very pleased to be collaborating with Ortho-McNeil and PRI," said Charles E. Bugg, Ph.D., Chairman and Chief Executive Officer of BioCryst. "PRI has been working diligently to advance the influenza neuraminidase inhibitor program through clinical testing, and this milestone payment is an acknowledgment of the progress they have made thus far."

The milestone payment is in conjunction with BioCryst's September 1998 worldwide license agreement with the PRI and Ortho-McNeil, both Johnson & Johnson (NYSE: JNJ) companies. In addition to today's payment, BioCryst may receive additional undisclosed cash payments upon achievement of specified developmental and regulatory milestones. Previously, Johnson & Johnson paid BioCryst a $6 million license fee and the Johnson & Johnson Development Corporation purchased $6 million of BioCryst stock. PRI is responsible for the research, development, and expenses of BioCryst's oral influenza inhibitor. Ortho-McNeil will market products cleared for marketing in the U.S.; Janssen-Cilag and other Johnson & Johnson companies will market products cleared for marketing outside the U.S.

Founded in 1986, BioCryst Pharmaceuticals, Inc. designs and develops novel small-molecule pharmaceuticals using structure-based drug design, an approach to drug discovery that integrates advanced biology, biophysics and medicinal chemistry. The Company is targeting T-cell, viral, and cardiovascular diseases and disorders, which include cutaneous T-cell lymphoma, HIV, influenza and cardiopulmonary bypass surgery.

This press release contains projections or other forward-looking statements regarding future events or the future financial performance of the Company. These statements are only predictions and the actual events or results may differ materially. Some of the factors that could affect the forward-looking statements contained herein include, without limitation, that there can be no assurances that either the Company's or its collaborative partners' research or product development efforts as to any particular compound will be successfully completed, that the agreements with the Company's collaborative partners will not be terminated according to their terms, that research and testing will result in milestone or royalty payments under the agreements with collaborative partners, and there can be no assurance as to timing by which products will be cleared for marketing, that the compounds currently under development will be safe or efficacious, or that required regulatory clearances can be obtained from the U.S. Food and Drug Administration. Please refer to the documents BioCryst files from time to time with the Securities and Exchange Commission, specifically BioCryst's most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in the projections or forward-looking statements.