Human Genome Sciences and Pharmacia & Upjohn collaborate to develop antimicrobial agents.

ROCKVILLE, Md. and KALAMAZOO, Mich.--(BUSINESS WIRE)--Oct. 9, 1996 Human Genome Sciences, Inc. (NASDAQ: HGSI) and Pharmacia & Upjohn, Inc. (NYSE: PNU) announced today that they have entered into a collaborative agreement to develop antimicrobial therapeutic and diagnostic products for human and animal use.

These products will be based upon gene sequences from Staphylococcus aureus and selected genes of a pathogenic strain of Escherichia coli (more commonly known as E. coli). These organisms cause a wide range of community- and hospital-acquired infections, as well as serious infections in livestock.

Under the terms of the agreement, Human Genome Sciences has granted Pharmacia & Upjohn a non-exclusive license to use the gene sequences from Staphylococcus aureus and E. coli together with Human Genome Sciences' proprietary bioinformatics resources, to identify potential new targets for the development of novel anti-infective, antibiotic and antifungal products. Pharmacia & Upjohn also has the option to obtain non-exclusive licenses to use genome sequences of other medically significant bacteria that Human Genome Sciences may independently generate and determine to license.

Pharmacia & Upjohn will make license and research payments totaling $9.0 million dollars to Human Genome Sciences over three years with an option to extend the agreement for up to two additional years at an undisclosed cost. In addition, Human Genome Sciences will receive milestone payments during product development and royalties on net sales of any products resulting from the agreement.

"We are pleased to collaborate with one of the world's antibiotics leaders in targeting two major pathogens in modern life," said William A. Haseltine, Ph.D., Chairman and Chief Executive Officer of Human Genome Sciences. "The scientific talent and experience of Pharmacia & Upjohn should, we hope, result in the discovery of valuable new therapeutic and diagnostic products to identify and control life threatening diseases caused by these organisms."

"Knowing the gene sequences of these organisms will greatly expand our ability to identify novel targets for antibiotic development," said W. Gary Tarpley, Ph.D., Vice President, Discovery Research of Pharmacia & Upjohn. "This collaboration provides further evidence of our commitment to remain a world leader in antibiotics research."

Several strains of Staphylococcus aureus and pathogenic E. coli have recently alarmed physicians and health authorities by their ability to overcome even the most sophisticated antibiotics now available. Staphylococcus aureus is the most frequent cause of infections in hospitals and is a major cause of bacteremia, septic shock, wound infections and such serious metastatic infections as endocarditis and osteomyelitis. Pathogenic E. coli is responsible for, or contributes to, a wide range of infectious diseases in humans including urinary tract infections, intestinal infections, septic abscesses, intra-abdominal infections, endocarditis, pneumonia, sinusitis and food poisoning. The seriousness of these conditions makes the development of novel antibiotics medically imperative.

Because the symptoms of these diseases are often non-specific, accurate diagnosis usually requires culturing samples in order to identify the specific micro-organism involved and thereby determine which antibiotic is needed. This often takes days or even weeks. Thus a diagnostic test that is both fast and highly specific for these pathogens would lead to more timely diagnosis and treatment.

Human Genome Sciences has collaborated with John Iandolo, Ph.D., of Kansas State University, who provided the S. aureus strain and purified DNA, and Rodney Welch, Ph.D., of the University of Wisconsin, who provided selected E. coli pathogenicity islands (isolated DNA segments having high concentrations of pathogenic genes) for sequencing by Human Genome Sciences. In addition, both scientists are collaborating with Human Genome Sciences in the early analysis and organization of the genes and genomes of these organisms.

Human Genome Sciences, Inc. is a company with the mission to develop products to predict, prevent, detect, treat and cure disease based on its leadership in the discovery and understanding of human, microbial and plant genes. Human Genome Sciences, Inc. is based in Rockville, Md.

Pharmacia & Upjohn, Inc. is a research-based, pharmaceutically focused company dedicated to helping people around the world live longer and fuller lives. The company was formed through a merger of Pharmacia AB and The Upjohn Company and began operating in November 1995. Pharmacia & Upjohn is a provider of human health care and related products, and operates on a global basis. The company has a corporate management center in London and major research and manufacturing centers in the United States, Sweden and Italy.

CONTACTS: Human Genome Sciences, Inc. Pharmacia & Upjohn

William A. Haseltine, Ph.D. Godfrey W. Grant

Chairman and CEO  Public Relations Manager

or 616/833-5959

Jonathan Cool

Director, Business Development

301/309-8504