Chiroscience Finalizes Global Marketing Arrangements for Chirocaine.

CAMBRIDGE, United Kingdom--(BW HealthWire)--June 15, 1999--

Chiroscience Group plc today announced that it has licensed its long acting local anaesthetic Chirocaine(R) to Purdue Pharma L.P. for the U.S. and Abbott International for all markets outside the US and Japan. In Japan Chirocaine has already been licensed to Maruishi Pharmaceutical Co. Ltd. Today's agreements finalize the global marketing arrangements for Chirocaine which is indicated for both anesthesia and pain management.

Purdue Pharma

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.

Abbott Laboratories

Abbott Laboratories is one of the world's leading healthcare companies and 1998 had sales of $12.5 billion, approximately 40% of which came from Abbott International. Abbott markets products in over 130 countries. Its major business areas are pharmaceuticals, hospital and nutritional products and diagnostics.

Abbott Laboratories has leading positions in several segments of the hospital market, including perioperative and intensive care products. The company's cornerstone business in this segment is anesthesia. Abbott markets the leading inhalation anaesthetic sevoflurane, along with a broad line of other anaesthetic agents. The global market for local anaesthetic agents is in excess of $500 million per annum.

Under the terms of the agreement, Abbott will pay Chiroscience royalties based on pre-determined sales thresholds for Chirocaine. Chiroscience will benefit from higher royalty rates if the sales of Chirocaine exceed certain targeted levels. Under terms of the agreement, Abbott will be responsible for product registration in its territories.

Dr. John Padfield, Chief Executive of Chiroscience Group plc commented:

"Today's agreements with Purdue and Abbott finalize the global marketing platform for Chirocaine. We are extremely pleased that Chirocaine will be sold in the U.S. by Purdue, a company that has clearly demonstrated its ability to maximize the potential of pain management products in that market. Abbott International's strong franchise in anesthetics and in pain management along with Chirocaine's competitive profile should enable sales of the product to be maximized outside the US and Japan.

Together these deals, along with our existing agreement with Maruishi for Japan, should allow Chiroscience to achieve the optimal returns for its shareholders from the commercialization of Chirocaine once it gains further regulatory approvals. At present we are in the final stages of discussing the Chirocaine label with the FDA and would hope for a final approval shortly. In Europe we are about to enter Mutual Recognition based on the approval by the Medical Products Agency in Sweden in December 1998 and we would anticipate receiving further approvals around the end of the year."

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."

Robert L. Parkinson Jr., President and Chief Operating Officer Abbott Laboratories, said:

"Abbott is pleased to partner with Chiroscience. Chirocaine provides a key addition to our core anesthetics business and strengthens Abbott's historic leadership in the area of pain management."

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.

Abbott Laboratories is a global, diversified health care company devoted to the discovery, development, manufacture and marketing of pharmaceutical, diagnostic, nutritional and hospital products. The company employs 56,000 people and markets its products in more than 130 countries. In 1998, the company's sales and net earnings were $12.5 billion and $2.3 billion, respectively, with diluted earnings per share of $1.51.