Cortecs appoints first European marketing partner for oral calcitonin.

LONDON, ENGLAND--(BUSINESS WIRE)--JANUARY 15, 1997--Cortecs International ("Cortecs") (NASDAQ:DLVRY / LSE:COR / ASX:CRI) the U.K. based pharmaceutical company, today announced that it has signed an agreement appointing Ferrer International S.A. ("Ferrer") as a partner in Spain for its oral calcitonin product for the treatment of post menopausal osteoporosis. This product is presently undergoing Phase II/III trials in Europe with the first anticipated registration application in Spring 1997.

Ferrer is a Barcelona-based pharmaceutical company and is a leading company in the Spanish pharmaceutical market place with annual sales of $250 million. Ferrer has over 1,000 employees, plus a strong established sales force and position in the Spanish osteoporosis market place.

This agreement with Ferrer is the third marketing agreement which Cortecs has concluded to date for oral calcitonin. The first two agreements are with Towa Pharmaceuticals of Japan and Teva Pharmaceuticals of Israel. This ten year agreement is similar contractually to the two previous agreements. Cortecs has the right to appoint another marketing partner in this territory.

The launch of Cortecs' oral calcitonin will be a major advance in the treatment of osteoporosis. Existing calcitonin treatments are by injection or intranasally. The introduction of this novel product into the Spanish calcitonin market, estimated at US$75 million annually, is forecast to have a substantial impact.

Bone breakdown (bone resorption) causes osteoporosis and occurs when the body's natural process of bone removal and replacement gets out of balance. It is most frequently due to hormone changes at the menopause but may sometimes be caused by diet or lifestyle. It is estimated that over 200 million people worldwide are afflicted with osteoporosis, most of whom are undiagnosed. Almost half of all women will have had related bone fractures by the time they are 70, but it is estimated that less than ten percent are receiving treatment. Furthermore, it is estimated that in the USA alone, osteoporosis costs US$10 billion a year, whilst in the UK the current estimated cost to the NHS is #750 million.

Cortecs is also developing a rapid point-of-care diagnostic for osteoporosis which will also provide important disease management capabilities to the medical profession.

Commenting on the announcement, Dr. Michael Flynn, President of Cortecs International said:- "We believe that an oral form of calcitonin will offer substantial patient benefits and are very pleased to have Ferrer as our first partner in Europe for this product. We are determined to be the first company to introduce a significant orally administered peptide to the market and this agreement takes us a further step forward."

Cortecs is a British based company quoted one the London Stock Exchange, the Australian Stock Exchange and on Nasdaq. The Company specializes in the development of new oral pharmaceutical delivery systems, new oral mucosal vaccines and point-of-care rapid diagnostics which provide the opportunity to advance the management of serious diseases such as:

OSTEOPOROSIS

-- Oral Calcitonin - An oral therapy for the prevention of bone breakdown. In Phase II/III.

-- Osteosal - A rapid doctors' office test to detect increased bone breakdown indicating the risk of the disease osteoporosis and also to monitor the adequacy of therapy. In development.

HELICOBACTER PYLORI 

-- Helisal(TM) - A rapid doctors' office whole blood test for the detection of H. pylori. In the market.

-- A 'one-step' whole blood test for the detection of H. pylori. In development. A rapid saliva test. In development.

-- Oral Therapeutic Vaccine - In development to stimulate immunity.

-- Oral Therapeutic - In research to improve eradication results.

DIABETES

-- Glycosal - Three rapid doctors' office tests in development to assist in the management and identification of diabetes.

-- Oral Insulin - Preparing for Phase II trials.

-- Neurulin - A topical product to treat diabetic neuropathy. In Phase II trials.

CYSTIC FIBROSIS & CHRONIC BRONCHITIS

-- Pseudostat - An oral therapeutic antigen to treat and prevent lung infection with Pseudomonas aeruginosa now in Phase II trials.

INFLUENZA

-- Flustat - An oral vaccine against influenza entered Phase I trials.

TUBERCULOSIS

-- Diagnostics - Rapid point-of-care, self-contained diagnostic kits, designed for use without any special training. In development.

NASOPHARYNGEAL CARCINOMA ("NPC")

-- Diagnostics - -A Rapid point-of-care diagnostic test to assist in diagnosing NPC. In development.

THRUSH

-- Moniliastat - An oral therapeutic vaccine against vaginal thrush. Enters human trials in current financial year.

MALE HORMONE DEFICIENCY

-- Halo Testosterone - An oral male hormone replacement therapy in development to treat male hypogonadism. In development.

Cortecs also markets a range of ethical and OTC medicines and diagnostic products in the U.K. -0-

"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: Some or all of the statements in this document that relate to future plans, expectations, events, performances and the like are forward-looking statements, as defined in the U.S. Private Securities Litigation Reform Act of 1995. Actual results or events could differ materially from those described in the forward looking statements due to a variety of factors, including those set forth in the Company's filings with the U.S. Securities and Exchange Commission.

Press releases and other Cortecs International information are available on the Cortecs International web site: http://www.cortecs.com.

CONTACT: Dr. Michael Flynn, President

Cortecs International

011 44 181-568-7071

or

John P. Kehoe/Van Negris

Kehoe, White, Savage & Company, Inc.

[phone]

or

Zena Bates/Lisa Baderoon

Buchanan Communications

011 44 171 489 1441

or

Dr. Geoffrey Brandon

Brandon Harris

011 44 171 407 6854