InKine Reports First Quarter 2001 Financial Results.

Business Editors

BLUE BELL, Pa.--(BUSINESS WIRE)--April 19, 2001

- First Quarter Highlights -

-- Launched Visicol(TM) with first quarter results exceeding expectations.

-- Entered into eighteen month co-promotion agreement with Procter & Gamble
Pharmaceuticals (P&GP), yielding the largest sales force in the purgative
product marketplace.

-- Signed agreement with established pharmaceutical manufacturer to develop and
market IBStat(TM), an immediate release, antispasmodic product for acute
treatment of spasm in the colon.

-- Received FDA consensus for planned pivotal study of Colirest(TM) in patients
with active Crohn's disease.

-- Granted orphan drug designation by FDA for Hematrol(TM) in the treatment of
idiopathic thrombocytopenic purpura (ITP).

InKine Pharmaceutical Company, Inc. (Nasdaq: INKP) today reported first time product sales of $1.6 million and a reduced loss per share of $0.08.

Net sales of Visicol(TM), launched commercially in the fourth week of January, totaled $1.6 million for the first quarter of 2001. Visicol(TM) is the Company's first product and is indicated for bowel cleansing prior to colonoscopy. Net sales represents product sales of Visicol(TM) to pharmaceutical wholesalers and large drug store chains, not Visicol(TM) prescriptions to consumers. These sales are affected by a number of factors, including wholesaler inventory stocking patterns, which may not accurately reflect underlying trends in the demand for Visicol(TM). There were no product sales in the same period a year ago.

The net loss during the first quarter of 2001 was $2.9 million or $0.08 per share compared to a net loss of $1.8 million or $0.06 for the same period a year ago. Net loss in the previous quarter ended December 31, 2000 was $3.7 million or $0.11 per share.

InKine's Chairman and Chief Executive Officer Leonard S. Jacob, M.D., Ph.D., today described the first quarter of commercial operations as a significant achievement for InKine. "We have successfully transitioned ourselves to a commercial operation and have exceeded first quarter expectations for both product sales and earnings per share. All of the major drug wholesalers placed initial stocking orders for Visicol(TM). We also achieved distribution in the top drug store chains and independent pharmacies across the country. Furthermore, re-orders from major wholesalers and large drug store chains were placed at the end of the quarter and continue to be placed."

Gross Profit was $834,000 for the quarter ended March 31, 2001 as compared to no gross profit for the same period a year ago. Cost of goods sold for the quarter ended was solely attributable to commercial sales of Visicol(TM), including product costs associated with the establishment of reserves for initial returns and allowances. Distribution expense for the current quarter includes costs related to contracted warehousing, tracking and shipping of product to our Visicol(TM) customers. Royalty expense represents amounts due to the inventor of Visicol(TM) and is based on the volume of net sales. Gross profit is expected to increase in the future as less promotional and launch related incentives are offered to customers and manufacturing costs per unit are reduced.

Research and development expenses decreased for the quarter ended March 31, 2001, as compared to the same period a year ago. This reduction was the result of decreased development costs associated with Visicol(TM), partially offset by costs associated with clinical trials of Colirest(TM) in inflammatory bowel disease and Phase IV marketing studies of Visicol(TM).

Sales and marketing costs of $1,917,000 were incurred for the quarter ended March 31, 2001, as compared with no sales and marketing costs for the same period a year ago. The increase is the result of new personnel and marketing activities associated with the launch of Visicol(TM).

"InKine now has the largest sales force in the bowel evacuant market in the United States with 105 sales representatives and managers nationwide," said Stephen Casey, Vice President, Sales and Marketing of InKine. "We held our national sales launch meeting in early January and an additional sales launch meeting for our P&GP representatives in early March. All of our representatives are now fully integrated and trained. We are already seeing results from our co-promotion agreement with P&GP, which includes only three weeks of effort during this quarter, and are encouraged by the early prescription adoption trends."

General and administrative expenses increased $293,000 for the quarter ended March 31, 2001, as compared to the same period a year ago. This increase is the result of increased administrative personnel and other administrative costs resulting from the expanded scale of operations associated with the launch of Visicol(TM). Included in general and administrative expenses is amortization of deferred compensation of $292,000 for the quarter ended March 31, 2001.

Cash and investment balance at March 31, 2001 was approximately $9 million, which included the proceeds of warrant and option exercises of approximately $375,000 for the quarter ended March 31, 2001.

Chief Financial Officer Robert F. Apple of InKine said, "We are pleased with the results of our product launch of Visicol(TM)and are encouraged by the trends we are seeing in prescriptions filled to date. Our cash position remains strong and we expect to see increased cash inflows resulting from future Visicol(TM) sales and the conversion of inventory and receivable balances into cash."

The Company will be hosting a conference call at 10:30 AM EDT, Thursday, April 19, 2001, to further discuss the first quarter 2001 financial results. To participate please dial [phone] (confirmation # 18602237) about 5-10 minutes prior to the initiation of the teleconference. The conference call will also be available on replay starting at 12:15 PM EDT on April 19, 2001, and ending at 12:15 PM EDT on April 20, 2001. For the replay, please dial [phone] (confirmation # 18602237). The access number for the replay for international callers is [phone] (confirmation # 18602237).

About InKine Pharmaceutical

InKine Pharmaceutical Company, Inc. is a publicly traded biopharmaceutical company focused on the diagnosis and treatment of cancer and autoimmune diseases. The Company's development strategy is to acquire late-stage drug candidates with short time lines to commercialization. Support of early-stage product opportunities comes through its university-based sponsored research. The Company's first product, Visicol(TM), was launched in January 2001 and is the first and only tablet purgative preparation indicated for bowel cleansing prior to colonoscopy. InKine's portfolio also includes three late-stage product candidates, IBStat(TM) in development for the treatment of spasm in the colon, Hematrol(TM), in Phase III trials for the treatment of idiopathic thrombocytopenic purpura and Colirest(TM), advancing to pivotal clinical trials for the treatment of Crohn's disease and completed Phase II trials for the treatment of ulcerative colitis. In addition, the Company is developing preclinical compounds from its two platform technologies, including Angiocidin(TM), a potent and specific angiogenesis inhibitor for potential use in cancer patients. For further information, please visit InKine on their web site http://www.inkine.com.

In addition to historical facts or statement of current condition, this press release may contain forward-looking statements. Forward-looking statements provide InKine's current expectations or forecasts of future events. These may include statements regarding anticipated scientific progress on its research programs, development of potential pharmaceutical products, interpretation of clinical results, prospects for regulatory approval, manufacturing development and capabilities, market prospects for its products, sales and earnings projections, and other statements regarding matters that are not historical facts. You may identify some of these forward-looking statements by the use of words in the statements such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" or other words and terms of similar meaning. InKine's performance and financial results could differ materially from those reflected in these forward-looking statements due to general financial, economic, regulatory and political conditions affecting the biotechnology and pharmaceutical industries as well as more specific risks and uncertainties such as those set forth in its reports on Form 10-Q and 10-K filed with the U.S. Securities and Exchange Commission. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements. Furthermore, InKine does not intend (and it is not obligated) to update publicly any forward-looking statements. This discussion is permitted by the Private Securities Litigation Reform Act of 1995.

                  InKine Pharmaceutical Company, Inc.

                  CONDENSED STATEMENTS OF OPERATIONS
                              (unaudited)
           (amounts in thousands, except per share amounts)

                                 Three-Months Ended
                                      March 31,
                               2001               2000
                               ----               ----

Revenue, net             $      1,601     $            -


Cost of goods sold               (674)                 -

Distribution                      (61)                 -

Royalty                           (32)                 -


 Gross profit                     834                  -

Research and
 development                      894              1,100

Sales and marketing             1,917                  -

General and
 administrative                 1,015                722

 Operating expenses             3,826              1,822


 Loss from operations          (2,992)            (1,822)


 Other income and
 expenses                         113                 62


 Net loss                $     (2,879)    $       (1,760)

 Net loss per share -
 basic and diluted       $      (0.08)    $        (0.06)

 Weighted average
 shares outstanding
 - basic and diluted           33,881             28,275

                       CONDENSED BALANCE SHEETS
                        (amounts in thousands)

                             March 31,       December 31,
                               2001             2000
                            (unaudited)
ASSETS
Cash and cash equivalents  $    9,047        $    11,520
Accounts receivable             1,475                  -
Inventory                       1,344                686
Prepaid expenses and
 other assets                   1,460                743
Fixed assets, net                 463                451

Total assets               $   13,789        $    13,400

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable and
 accrued expenses          $    2,680         $      623
Line of credit                  2,293              1,752
Shareholders' equity            8,816             11,025

Total liabilities and
 shareholders' equity      $   13,789         $   13,400