PEPLIN ACQUIRES PORTFOLIO OF POTENTIAL THERAPEUTIC PRODUCTS.

Peplin Biotech Ltd [ASX: PEP], Brisbane, Australia, has acquired a promising portfolio of potential therapeutic products comprising new synthetic, engineered polyunsaturated fatty acid (EPUFA) compounds. These compounds are the product of an extensive research program at the Women's & Children's Hospital (WCH) in Adelaide. Over the past decade, the research group at WCH, which is led by Professor Tony Ferrante and assisted by Professor Alfred Poulos, has created a world-class position in synthetic polyunsaturated fatty acid chemistry.

Under the terms of the deal Peplin Biotech secures the rights to 44 novel compounds and 41 patent filings, represented by seven patent families, including five granted US patents covering molecular structures and their use as human therapeutics. As consideration for the assignment, Peplin will make an initial payment of $225,000 plus 200,000 ordinary shares and 250,000 options exercisable at 79 cents per share. In addition, Peplin has agreed to a series of future contingent payments, payable in ordinary shares, relating to key milestones in the development and commercialization of compounds in the portfolio.

Peplin will continue research with Professor Ferrante's team at WCH, together with Peplin's international collaborators in Australia, Europe and the USA to identify the most promising lead compounds for commercial drug development.

The EPUFA compounds licensed by Peplin are novel patented synthetic molecules. They are highly selective and potent versions of natural omega-3 fatty acids. International researchers have noted the many potential health benefits associated with the consumption of the omega-3 fatty acids found in fish and postulated the use of these compounds as therapeutic products. However, the challenges of delivering an effective dose, the problem of inflammatory side effects at an effective dose and the lack of strong patent positions over natural omega-3 compounds have proven to be barriers to major investment in their development as drugs. Peplin expects these patent protected EPUFA compounds to more effectively deliver the desired therapeutic goals with an acceptable side effect profile.

Peplin Biotech's Research Director, Dr Jim Aylward said this deal is one of the most important developments for Peplin Biotech since the company was established five years ago.

"Although completely different structurally, there are some important similarities between these new compounds and Peplin's lead anti-cancer drug PEP005, in particular the modulation of protein kinase C (PKC) and evidence of powerful effects on the immune system. Of interest, the new compounds are synthetic molecules and are predicted to be orally available."

About Peplin Biotech

Peplin Biotech Ltd is a biotechnology company based in Brisbane, Australia, focused on discovering and developing prescription human therapeutic products for the treatment of cancer. Its strategy is to leverage its pipeline of novel proprietary products through collaborative development arrangements with international pharmaceutical companies. Peplin's lead product is a potential topical therapy for non-melanoma skin cancer. It is the subject of a joint development and licence agreement with Allergan, Inc. of Irvine California.

Peplin's earlier stage pipeline is targeted at other forms of cancer using topical, intralesional and systemic routes of administration. Its new portfolio of EPUFA compounds opens additional potential opportunities in cancer and adds candidates for cardiovascular disease, pain and diabetic complications.

For more information, http://www.peplin.com.