CARBOHYDRATE THERAPY SALES TO EXPLODE 15 TIMES, TOP $5 BILLION BY 2000, PACED BY CANCER, VIRAL TREATMENTS.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- U.S. sales of complex carbohydrate therapeutics will explode by more than 15 times from $329 million in 1993 to $5.25 billion by the year 2000, growing at a 49 percent compound annual rate, projects a new study just released by Frost & Sullivan.

The share of total market revenues paid for modified complex carbohydrate products will rise from 13 percent in 1993 to 24 percent in 2000 while that of Heparin drops from 29 to 5 percent and that of genetic disease treatments from 32 to 2 percent in the same period as currently unavailable anti- cancer, anti-microbial, anti- diabetes and anti-inflammatory products emerge, forecasts the report, COMPLEX CARBOHYDRATE THERAPEUTIC MARKETS; NUMEROUS PRODUCT INTRODUCTIONS IMMINENT BY 2000.

This market, which has been growing at only a modest rate with a few ongoing products, is projected to balloon with new product introductions in 1996 and thereafter. Only four currently used pharmaceutical products are based on carbohydrate technology including the well-established anti-coagulant Heparin; hyaluronan, a coating material used in cataract surgery; and Ceradase and Adagen, treatments for genetic disorders. Revolutionary clinical work is now taking place to use carbohydrates against other major diseases prominently including cancer, viruses, diabetes and inflammation. Many products are in early to middle stages of clinical trials with promising results. Dozens of products should reach the U.S. market by decade's end. Many are breakthrough innovations targeted as therapies to untreated conditions.

Significant clinical and regulatory barriers remain, however, before approval. Several companies have encountered late- stage clinical disappointments. Cost-effectiveness must be demonstrated more than ever before. Capital may be hard to come by in an environment where healthcare reform is still feared.

The emerging ability to reduce the number of costly steps involved in carbohydrate production is making it increasingly viable economically. Dramatic improvement in manufacturing cost could mean carbohydrate products can compete favorably with pharmaceutical proteins on price as well as efficacy. The production process had already been reduced from 60 to 25 synthetic steps but recent biotech company data indicates the process can be streamlined down to 12 and ultimately possibly fewer than five synthetic steps.

Complex carbohydrate products have a pharmoeconomic advantage over competitive chemical and protein products in reduced side effects and complications. Many existing protein and chemical- based drugs are mild toxins themselves or are metabolized in the body into toxins. Complex carbohydrate compounds, on the other hand, are typically metabolized to sugar and so cause fewer side effects, resulting in less need for hospitalization, additional medication and interventional procedures. Carbohydrate-based products require lower doses and less frequent administration, which means greater convenience and lower cost as well.

The biotechnology industry is increasingly realizing its long-term success requires a focus on more than one class of biomolecules. Virtually all FDA-approved therapeutic products currently derived from biotech labs are naturally occurring human proteins, as are the vast majority of drugs now in the product development pipeline.

Some small research-based biotech companies are trying to build sales and marketing organizations around their promising carbohydrate technologies. Others will stick to their core expertise while licensing product marketing rights to large drug firms. Some are adopting a mixed strategy, retaining rights to what they see as their most promising products while licensing out niche products to companies with relevant experience.

Frost & Sullivan is an international high-technology research firm. All Frost & Sullivan reports are based on extensive interviews with marketing and technical experts from selected companies in each market segment. Primary research is validated by thorough analysis of available secondary research. Frost & Sullivan is the leading publisher worldwide of high-technology research reports.

Report: 5031-57 Publication Date: 1995 Price: $2195

Total Complex Carbohydrate Therapeutics Market:

Revenue Forecasts (U.S.), 1990-2000

Revenue

Revenues Growth

Year ($ mil) (%)

1990 200.8 -

1991 244.4 21.7

1992 285.5 16.8

1993 329.3 15.3

1994 351.7 6.8

1995 362.9 3.2

1996 739.3 103.7

1997 1,473.3 99.3

1998 2,562.2 73.9

1999 4,022.9 57.0

2000 5,246.4 30.4

CAGR : 48.5%

CONTACT: For further information please contact:

Amy Arnell Kristina Menzefricke Nadge Keryhuel

Mountain View London Paris

[phone] 44 171 730 3438 33 1 4742 9127

[phone](fax) 44 171 730 3343 33 1 4742 9129

REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or

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