D-Pharm Leads the Way to an Israeli Biotechnology Consortium.

Business Editors & Health/Medical Writers

BIOWIRE2K

REHOVOT, Israel--(BW Healthwire)--May 15, 2001

D-Pharm Ltd. announced the establishment of a Biopharmaceutical Research Consortium - Pharma Logica, which will be financed by the Office of the Chief Scientist of the Ministry of Industry and Trade.

Dr. Itzhak Angel, Vice President for Research & Development at D-Pharm, who is a veteran of the European pharmaceutical industry, will head the Consortium. Other Consortium members include the Israeli biotech companies Peptor, Pharmos; the technology and computational drug development companies, HBI, HPBM, MBC, Karmapharm, Bio-IT and Compugen , as well as representatives from academia and research institutes.

The Israeli Consortium's mission is to design and develop novel, technologies to facilitate the early stages of the pharmaceutical development process. The Consortium's technologies will focus on enabling novel early ADME and early toxicology (early ADMET) studies and will help in developing computer-assisted predictive tools for more effective drug development. These technologies will determine whether an active molecule has the desired properties that render itfeasible for further development as well as better predict the outcome of this development.

They will also enable iterative optimization (by feedback chemical input) resulting in improved lead development and a better understanding of the compounds' developmental needs. Moreover, the technologies may enable the formulation of general guidelines for molecular structural features required for membrane permeability and tissue availability enhancement. These criteria will be used in the initial design process, and can later be integrated into the screening infrastructure for ethical drug development systems.

It is believed that the unique network of academic and research groups providing core scientific knowledge, toolbox and computational companies with their capability to develop the required technologies, together with product oriented pharmaceutical companies and their bioactive compound generation potential, provide the Consortium with an excellent basis on which to build for future success.

In addition to the identification of biologically active compounds, other key features are required in order to turn an active molecule into a successful drug candidate. These include, among others, appropriate distribution and availability of the drug at the target organs, stability under physiological conditions, suitable pharmacokinetic and metabolic properties, and a favorable safety profile.

One of the greatest challenges in drug discovery is to maximize drug potency and selectivity, while optimizing such parameters as absorption, distribution, metabolism and excretion. In other words, in order to make better decisions about the acceptability of new lead compounds, it is important to know not only what the compound will do to the body, but also what the body will do to the compound. Obviously, certain aspects of a molecule cannot be studied until the later phases of development, but a predictive tool is both welcome and justified by eliminating more risky programs at the earliest possible stage, as well as improving the drug discovery process for more promising compounds. "The structural diversity of the molecules that the companies bring to the consortium on one hand, and the focusing of the science and technologies on the other, together with the possibility to include international contributors to the consortium, makes it a unique multifunctional body that should enable novel technology development and optimized drug development" said Dr. Itzchak Angel.

About D-Pharm (www.dpharm.com)

D-Pharm is an emerging biopharmaceutical company applying an innovative approach to the creation of new drugs by re-engineering existing drugs and/or drug leads to optimize their pharmacological profile and expedite their clinical development.

D-Pharm's proprietary technologies are based on its expertise in membrane biochemistry and lipid medicinal chemistry. D-Pharm technologies exploit pathological processes to selectively target and activate the compound's pharmacological action to the actual site of disease. Thus, by applying these lipid technologies to existing compounds, the Company creates new chemical entities (NCEs), which are safer and more effective for therapeutic use.

D-Pharm's business strategy involves creating value from both novel and established therapeutics. The Company develops new products through pre-clinical development to proof of concept in early phase clinical trials, partnering with pharmaceutical companies for later stage clinical development and marketing. Moreover, the Company collaborates with companies on optimizing the pharmacological activity of their proprietary drug leads, so as to enhance their probability of success through the pharmaceutical development path.

D-Pharm has successfully completed Phase I clinical trials for its lead drug candidate, DP-VPA, a D-RAPTM (Regulated Activation of Prodrugs) - based derivative of valproic acid. Valproic acid is widely used for epilepsy, bipolar disease and migraine prophylaxis. The worldwide rights to develop and market this new product were granted to Shire Pharmaceuticals Group, who are proceeding with Phase II trials in epilepsy.

DP-b99 is a novel neuroprotective agent, based on the Company's MAC (Membrane Active Chelators) discovery platform. Unlike other compounds developed for stroke, DP-b99 has a very long therapeutic window in animal models, and is expected to be effective even if administered hours after the onset of stroke upon hospital admission of stroke victims. Moreover, it has a remarkable safety index, lacking any toxicity even when administered at doses 1000 times higher than the expected effective dose. The compound has successfully completed Phase I clinical trials and is about to enter Phase II trials in stroke patients.

Additional new products, under development for CNS, inflammation and cancer disorders, are in the preclinical phase of development.

D-Pharm has also signed collaboration agreements with Nycomed - Amersham Imaging and Eli Lilly & Company on applying its technologies to the development of imaging agents and neurological therapeutics, respectively.

D-Pharm currently employs 94 people, more than 60% of who hold advanced technical degrees. This core team represents expertise in medicinal chemistry, computer modeling, formulation, biochemistry and in vivo pharmacology. The management team consists of:

- Dr. Alexander Kozak, Founder, President and CEO

- Dr. Yaffa Beck, Executive VP and COO

- Dr. Itzchak Angel, VP of R&D

- Mr. Amos Weiss, VP Finance and CFO

- Mr. Albert Lauritano, VP, D-Pharm US Inc.

D-Pharm is headquartered in a state of the art research facility at Kiryat Weizmann Science Park (Israel). In January 2000, it established a subsidiary in the United States, D-Pharm US Inc. (Chapel Hill, NC). Recently, D-Pharm acquired a 1,200 square meter plant in southern Israel as a pilot plant for developing and optimizing bulk production for its pharmaceutical products.

Business Opportunities - D-Pharm intends to partner its unique products with leading pharmaceutical companies for further clinical development and global commercialization. Moreover, the Company intends to collaborate with biotech and pharmaceutical companies by applying its technologies to the pharmacological optimization of the partner's proprietary drug leads. For more information on product licensing and research collaborations please contact the Company's Business Development team:

Contact person for the Consortium:

Dr. Itzhak Angel VP for R & D. D-Pharm Ltd. Tel: [phone] Fax: [phone] [e-mail]