Titan Announces Corporate Partnership With Schering AG for Development and Commercialization of Novel Parkinson's Disease Therapy.

Business Editors/Medical Writers

S. SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Feb. 2, 2000

Titan Pharmaceuticals Inc. (AMEX: TTP) today announced that it has established a corporate partnership with Schering AG for the worldwide development, manufacture, and commercialization of Titan's novel cell therapy for the treatment of Parkinson's disease.

Under the agreement, Titan and Schering will collaborate on manufacturing, and clinical development of the product. Titan will receive funding for development activities, as well as reimbursement of certain prior research and development expenses. Schering will fully fund, and manage in collaboration with Titan, all future pilot and pivotal clinical studies. Schering AG receives exclusive, worldwide development, manufacturing, and commercialization rights, and will pay Titan a royalty on product sales. Under the agreement, Schering also retains the right to make an equity investment in Titan, up to a specified amount, upon initiation of pivotal clinical studies.

The potential economic value of the agreement, including development funding and equity investment, but not including funding of clinical trials and product royalties, is approximately $26 million.

In addition to collaborative development of Titan's Parkinson's disease therapy, Titan and Schering will also mutually explore other potential therapeutic applications of Titan's CCM(TM) (cell-coated microcarrier) technology, under a one year exclusive option granted to Schering under the agreement.

In animal experiments, CCM technology has shown the ability to maintain high long term viability and function of numerous, diverse cell types, and represents a potential broad platform technology for delivery and survival enablement for therapeutic cells.

&uot;We are very excited to establish this corporate partnership with Schering AG,&uot; stated Dr. Louis R. Bucalo, President and CEO of Titan. &uot;Schering's expertise in cell biology, neuroscience, and global resources will help to maximize the opportunity for our Parkinson's disease product and CCM(TM) technology.&uot;

&uot;We are pleased to establish this collaboration with Titan,&uot; stated Dr. Joachim Kapp, Head of the Business Area Therapeutics of Schering. &uot;Titan's technology may establish new opportunities for the treatment of Parkinson's disease and other serious disorders.&uot;

Titan's product, Spheramine(TM), is a novel, cell-based product for the treatment of Parkinson's disease, which will utilize non-embryonic, human retinal pigment epithelial (RPE) cells. RPE cells produce dopamine, a neurotransmitter that is lacking in certain brain regions in Parkinson's disease. The product consists of human RPE cells adhered to microscopic, inert matrices which allow the long term survival and function of cells that are implanted into the mammalian central nervous system. Murine and primate animal studies have demonstrated the ability of a single treatment of RPE cells on microcarriers to significantly reverse Parkinson's like symptoms for the duration of the experimental evaluation, which was up to one year.

In these studies, unmodified human RPE cells survived and functioned without any need for immunosuppression or modification of the cells. RPE cells can be propagated using cell culture methods to produce a large amount of cells, and tests to date have shown that the cells may be frozen prior to use, allowing the potential for a standardized product available on an as needed basis.

Titan Pharmaceuticals, Inc. is a biopharmaceutical company developing proprietary therapeutics for the treatment of central nervous system disorders, cancer, and other serious and life threatening diseases.

Schering AG is a research-based pharmaceutical company. As a global player with innovative products, Schering aims for leading positions in specialized markets worldwide. Schering's activities are focused on four business areas: diagnostics, gynecology, therapeutics for disabling diseases (e.g. multiple sclerosis, cardiovascular and oncology) and dermatology. With in-house R& and an excellent R& network with external partners, Schering is securing innovation and a promising product pipeline.

The press release may contain &uot;forward-looking statements&uot;within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to the Company's development program and any other statements that are not historical facts. Such statements involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to difficulties or delays in development, testing, regulatory approval, production and marketing of the Company's drug candidates, unexpected adverse side effects or inadequate therapeutic efficacy of the Company's drug candidates that could slow or prevent product markets, the uncertainty of patent protection for the Company's intellectual property or trade secrets and the Company's ability to obtain additional financing if necessary. Such statements are based on management's current expectations, but actual results may differ materially due to various factors, including those risks and uncertainties mentioned or referred to in this press release.