Pharmacopeia Enters Into a Research and License Agreement With Wyeth to Develop Novel JAK3 Inhibitors for the Treatment of Immunological and Inflammatory Diseases

PRINCETON, N.J., Jan. 4 /PRNewswire-FirstCall/ -- Pharmacopeia , an innovator in the discovery and development of novel small molecule therapeutics, today announced the signing of an exclusive Research and License Agreement with Wyeth Pharmaceuticals, a division of Wyeth . The alliance is based on Pharmacopeia's JAK3 inhibitor program and it will be focused on the research, development and commercialization of JAK3 inhibitor-based therapeutic products. Inhibition of JAK3 has been shown in both preclinical and clinical studies to modulate disease outcomes, and given its critical function in activated T-cells, offers significant potential for the development of novel and improved treatments for rheumatoid arthritis, psoriasis and certain other immunological conditions.

The companies each have the exclusive right to develop and commercialize products resulting from the research collaboration. Pharmacopeia retains the right to develop and commercialize therapeutic products for the treatment of dermatological and ocular diseases via topical administration, and Wyeth has the right to develop therapeutic products for all other indications and routes of delivery.

Under the terms of the agreement, Pharmacopeia will receive a $5 million upfront payment and may also receive, over the next three years, up to $9 million in research funding. In addition, Pharmacopeia may receive up to $175 million upon Wyeth's achievement of certain preclinical, clinical, regulatory and commercialization milestones, as well as double-digit royalties on the net sales of any products commercialized by Wyeth under the collaboration. Each company is responsible for all development, regulatory, manufacturing and commercialization activities for the products it develops and commercializes in its field.

"This agreement with Wyeth reflects our progress on JAK3, an innovative and attractive target in immunoregulation. It provides Pharmacopeia with research funding to further advance the JAK3 program, and recognizes the value already built up by Pharmacopeia," noted Les Browne, Ph.D., President and Chief Executive Officer of Pharmacopeia. "Wyeth, with its global franchises and significant expertise in the development of therapeutics for both autoimmune disease and transplantation, is an ideal partner for Pharmacopeia for the JAK3 program. Importantly, Pharmacopeia retains certain rights that allow us to build our own clinical portfolio," continued Dr. Browne.

ABOUT PHARMACOPEIA

Pharmacopeia is committed to discovering and developing novel therapeutics to address significant medical needs. The Company has a broad portfolio advancing towards clinical validation, both independently and with partners. Pharmacopeia's most advanced internal program is a dual-acting angiotensin and endothelin receptor antagonist (DARA) for resistant hypertension and diabetic kidney disease that is currently in preclinical development. Other internal proprietary programs address immunoregulation. Three partnered programs are in active Phase I clinical trials: p38 MAP kinase inhibitors for rheumatoid arthritis, CXCR2 antagonists for chronic obstructive pulmonary disease (COPD), and an enzyme inhibitor for oncology. Six additional partnered compounds are in preclinical development. Pharmacopeia's discovery, development and commercialization partnerships are with leading pharmaceutical companies including GlaxoSmithKline, Bristol Myers-Squibb, Organon, Schering-Plough, Cephalon, Celgene and Wyeth.

Contact: Simon Tomlinson, Ph.D. Senior Vice President, Business Development Pharmacopeia (609) 452-3643 irreq@pharmacopeia.com

This press release, and oral statements made with respect to information contained in this press release, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those which express plan, anticipation, intent, goal, contingency or future development and/or otherwise are not statements of historical fact. These statements are based upon management's current expectations and are subject to risks and uncertainties, known and unknown, which could cause actual results and developments to differ materially from those expressed or implied in such statements. These forward- looking statements include, but are not limited to, statements about the successful implementation of Pharmacopeia's strategic plans, Pharmacopeia's and Wyeth's abilities to successfully perform under their collaboration, Pharmacopeia's plans to develop its DARA program and file an IND with respect to the program, Pharmacopeia's ability to successfully perform under its collaborations with Cephalon and GlaxoSmithKline, Pharmacopeia's ability to build its pipeline of novel drug candidates through its own internally-funded drug discovery programs, third party collaborations and in-licensing, the continuation and funding level of such continuation of Pharmacopeia's existing drug discovery collaboration with N.V. Organon, Pharmacopeia's intentions regarding the establishment of new drug discovery collaborations with leading pharmaceutical and biotechnology organizations, Pharmacopeia's ability to raise additional capital, Pharmacopeia's expectations concerning the development priorities of its collaborators, their ability to successfully develop compounds and its receipt of milestones and royalties from the collaborations, Pharmacopeia's anticipated operating results, financial condition, liquidity and capital resources, Pharmacopeia's expectations concerning the legal protections afforded by U.S. and international patent law, Pharmacopeia's ability to pursue the development of new compounds and other business matters without infringing the patent rights of others, additional competition, and changes in economic conditions.

Further information about these and other relevant risks and uncertainties may be found in Pharmacopeia's Reports on Form 8-K, 10-Q and 10-K filed with the U.S. Securities and Exchange Commission. Pharmacopeia urges you to carefully review and consider the disclosures found in its filings which are available in the SEC EDGAR database at http://www.sec.gov/ and from Pharmacopeia at http://www.pharmacopeia.com/. All forward-looking statements in this press release and oral statements made with respect to information contained in this press release are qualified entirely by the cautionary statements included in this press release and such filings. These risks and uncertainties could cause actual results to differ materially from results expressed or implied by such forward-looking statements. These forward-looking statements speak only as of the date of this press release. Pharmacopeia undertakes no obligation to (and expressly disclaims any such obligation to) publicly update or revise the statements made herein or the risk factors that may relate thereto whether as a result of new information, future events, or otherwise.