Chiroscience Concludes U.S. Marketing Agreement With Purdue Pharma L.P. for Chirocaine.

CAMBRIDGE, U.K.--(BW HealthWire)--June 15, 1999--

Chiroscience Group plc today announced that it has signed an exclusive license agreement covering the United States marketing of its long acting local anaesthetic, Chirocaine(R) (levobupivacaine) with Purdue Pharma L.P, a leader in the field of pain management. This agreement forms a key element of Chiroscience's global marketing arrangements for Chirocaine which is indicated for both anesthesia and pain management.

Purdue Pharma L.P. is one of the fastest growing pharmaceutical companies in the U.S. with sales growth of 46% in 1998 bringing total sales to $600 million. Purdue's sales in the U.S. are expected to surpass $800 million in 1999. The company's lead pain management product OxyContin(R), (oxycodone hydrochloride controlled-release), which was developed internally at Purdue and is co-promoted with Abbott Laboratories, has been particularly successful. In 1998 U.S. sales of OxyContin more than doubled to over $300 million. U.S. sales of OxyContin(R) in 1999 are expected to exceed $500 million. This growth along with the success of MS Contin(R) (morphine sulfate controlled-release) has given Purdue the leading position in the $765 million U.S. market for non-injectable strong opioid analgesics.

Purdue's sales and marketing resources have been expanded rapidly in recent years and now comprise a 696 person field sales organization calling on primary care, speciality, and hospital-based physicians, with speciality sales teams covering managed care and the nursing home/hospice sector.

Under the terms of the agreement, Purdue will be the exclusive marketer and distributor of Chirocaine in the U.S., and Chiroscience will share equally in the profits generated from Chirocaine in the U.S. market. This 50:50 profit sharing structure means that once the initial marketing costs needed to establish the product have been absorbed, Chiroscience expects to make higher returns from Chirocaine in the U.S. than would have been achieved under a normal royalty deal.

Dr. John Padfield, Chief Executive of Chiroscience Group plc commented: "This agreement with Purdue marks an important part of our global marketing platform for Chirocaine. We are extremely pleased that Chirocaine will be sold by Purdue, a company whose highly committed salesforce has clearly demonstrated its ability to maximize the potential of pain management products in the U.S. market. We believe that this deal which delivers an equal share of the profits will provide Chiroscience with significant returns from Chirocaine's anticipated success in the U.S."

Michael Friedman, Group Vice President of Purdue Pharma L.P. commented: "We are very excited about the potential for Chirocaine to enhance further our pain management franchise. Our leading position in this market, which has been established based on our proprietary products OxyContin(R) and MS Contin(R), will be strengthened by this agreement with Chiroscience."

Notes to Editors

Chiroscience Group plc is an emerging pharmaceutical company with two distinct parts; Chiroscience R&D, the company's core pharmaceutical products business, and the specialist service businesses, ChiroTech and Rapigene. Chiroscience R&D uses its `gene-to-drug' skills base to discover and develop innovative small-molecule pharmaceuticals for the treatment of inflammation, pain, cancer, osteoporosis and auto-immune disease. Chirocaine, its long-acting local anaesthetic is close to market. ChiroTech is a profitable business that is a world leader in the provision of specialist chiral chemistry services and products. Rapigene is commercializing its Masscode system for high-throughput genetic measurement and analysis.

Chiroscience Group plc is listed on the London Stock Exchange and is based in Cambridge and Stevenage, UK, and Seattle, Washington, USA. Additional information on Chiroscience can be accessed on the company's web site: http://www.chiroscience.com.

Purdue Pharma L.P., headquartered in Norwalk, Connecticut, U.S. and its associated companies, including the Mundipharma companies and Napp Pharmaceutical Group, Ltd., comprise a privately-held, worldwide pharmaceutical network with discovery, development, manufacturing, marketing and distribution capabilities. The companies maintain a leading presence in the field of pain management with their products OxyContin(R), (oxycodone hydrochloride controlled-release) tablets and MS Contin(R) (morphine sulfate controlled-release) tablets. The network also includes a biologic therapeutics business, Purdue BioPharma L.P., based in Princeton, New Jersey, which is focused on the development of antibody-based therapeutics and vaccines.