CoCensys and Warner-Lambert Announce Two Collaborations to Develop and Market Treatments for Central Nervous System Disorders; CoCensys to Co-Promote Cognex(R) to Neurologists.

IRVINE, Calif.--(HealthWire)--Oct. 31, 1995--CoCensys (Nasdaq: COCN) today announced two strategic collaborations with Warner-Lambert Company, and its Parke-Davis division, to develop and market therapeutic drugs for the treatment of central nervous system (CNS) disorders. Under the first agreement, the companies will share technology and resources to develop a new class of neurological and psychiatric drugs, termed subtype selective NMDA receptor antagonists. In the second collaboration, CoCensys will co-promote Parke-Davis' CNS drug, Cognex(R) (tacrine hydrochloride), to U.S. neurologists for the treatment of Alzheimer's Disease.

Through these agreements, CoCensys fulfills its dual strategic business objectives to expand the Company's CNS drug development portfolio, while adding a neurology sales and marketing capability that will support its CNS drugs currently under development.

Under the first agreement, CoCensys and Parke-Davis will equally share co-promotion rights for all compounds arising out of this agreement in both the U.S. and Japan and will split all profits equally. In addition, Parke-Davis will develop, register and market any drugs that are derived from this collaboration in the rest of the world and pay a royalty to CoCensys. CoCensys and Parke-Davis will share drug development costs in a proportion appropriate to their respective marketing rights. Finally, Parke-Davis will make an equity investment in CoCensys, as well as pay certain milestone payments.

The companies will co-discover and develop therapeutic drugs utilizing CoCensys' research on NMDA receptor subtypes, the Parke-Davis compound library, and their complementary research strengths in the glutamate receptor area. NMDA receptors are one of the neuronal receptors for glutamate, the most important excitatory neurotransmitter in the brain. They are known to be involved in many acute and chronic neurological diseases. By selectively blocking a specific receptor subtype, researchers believe these compounds will not cause severe psychotic side effects associated with conventional, non-selective NMDA receptor antagonist drugs. An initial target of the collaboration will be a drug to treat stroke and head trauma. The indications for subtype specific NMDA receptor antagonists may be much broader, however, and the research collaboration will explore several other possible applications.

Under the second agreement, Parke-Davis grants CoCensys exclusive rights to co-promote Cognex to neurologists in the U.S. Parke-Davis retains the rights to market Cognex to all other physician groups in the U.S., as well as in all markets throughout the rest of the world.

"These agreements allow Parke-Davis to enhance its position in the CNS arena," said Anthony H. Wild, Ph.D., President, Parke-Davis. "CoCensys' CNS disease management expertise will provide us with another venue to expand our franchise for Cognex in the Alzheimer's Disease market. Also, through our co-discovery and development collaboration, CoCensys' research will broaden our new generation of innovative drugs to treat a wide range of CNS diseases."

"These agreements team CoCensys with an ideal, international pharmaceutical partner," said Daniel L. Korpolinski, President and CEO of CoCensys. "In addition to expediting our planned entry into the neurological market, this arrangement will provide funding for training our existing disease management field force to address Alzheimer's Disease and the entire neurology field. It will also allow us to conserve our financial resources for research and development of our product pipeline."

In a separate release today, CoCensys announced the amendment of its U.S. marketing agreement with Ciba Pharmaceuticals to conclude co-promotion of Anafranil(R) and Tofranil(R) at the end of 1996.

Parke-Davis, a division of Warner-Lambert Company, is devoted to discovering, developing, manufacturing and marketing quality pharmaceutical products. Warner-Lambert has three principal lines of business: pharmaceutical, consumer heath and confectionery. It employs 36,000 people worldwide and, along with Parke-Davis, is headquartered in Morris Plains, N.J.

CoCensys, Inc. is a biopharmaceutical company that discovers, develops and markets products to treat psychiatric and neurological disorders. In addition to its NMDA technology platform, the company is developing a class of novel small molecule compounds, known as Epalons, that enhance the activity of GABA (gamma-aminobutyric acid), a neurotransmitter that inhibits neuronal activity to produce a calming effect in the CNS. Epalons interact with a novel binding site on the GABA(A)-C1- channel receptor complex, and may have therapeutic benefit in treating epilepsy, anxiety and sleep disorders.

CONTACT: Daniel L. Korpolinski Karen L. Bergman (Media)

President and CEO Lilian S. Stern (Investors)

CoCensys, Inc. Burns McClellan, Inc.

714/753-6100 212/505-1919