A FIRST FOR CAMBRIDGE COMBINATORIAL WITH DAINIPPON

Cambridge Combinatorial Limited, the combinatorial chemistry company specialising in the design, production and supply of compounds for the drug discovery industry, has won its first major contract since its launch earlier this year. Under a collaborative agreement, between its founding shareholder, Oxford Molecular Group, and Dainippon Pharmaceuticals of Japan, Cambridge Combinatorial will supply the Japanese company with novel, targeted combinatorial libraries and specialist consultancy services.

The agreement brings together Cambridge Combinatorial and Oxford Molecular in their first joint venture. The research programme will focus on a selected biological target for which Cambridge Combinatorial will synthesise novel targeted libraries of compounds for screening, designed by Oxford Molecular using their proprietary molecular modelling techniques. Cambridge Combinatorial will also supply consultancy services to Dainippon to allow them to establish their own combinatorial chemistry unit. The programme will extend for a minimum period of one year and involves the payment of an undisclosed initial sum, ongoing research fees and milestone payments, plus royalties from any compounds which ultimately make it to the market.

Dr Allan Marchington, Chief Executive of Cambridge Combinatorial, said:

"We are delighted to have won our first major contract since our establishment earlier this year, and to have done so with such a leading, prestigious company. It is a vote of confidence in what I believe is a unique offering of Cambridge Combinatorial's proven expertise in medicinal chemistry and combinatorial techniques combined with the molecular modelling technology of our partner, Oxford Molecular. We remain dedicated to becoming the leading provider of combinatorial chemistry services to the biopharmaceutical industry and a deal of this calibre is an important step in that direction."

Notes to editors

Cambridge Combinatorial Limited
Cambridge Combinatorial Limited specialises in the design, production and supply of chemical compounds for the drug discovery industry. Headed by Dr Allan Marchington, Chief Executive, and Dr Ryszard Kobylecki, Technical Director, both ex-Pfizer medicinal chemists, the company was established with a £2 million investment from Oxford Molecular Group, the management, founding scientists and the University of Cambridge (through its intellectual property company, Cambridge University Technical Services Limited). The new Cambridge-based company employs recent advances in combinatorial chemistry, methods which allow the rapid synthesis of many thousands of diverse compounds, to supply the pharmaceutical and emerging biotechnology industries with a pool of structures from which active compounds can be identified.

Oxford Molecular Inc.
Oxford Molecular Inc. is a world-wide provider of solutions for discovery research to chemical, pharmaceutical and biotechnology companies and universities. Using the company's wide range of computer-aided molecular design (CAMD) software, advanced bioinformatics tools, cheminformatics solutions and collaborative research services, researchers can reduce both cost and time, expediting discovery across multiple disciplines.

Oxford Molecular has strategic alliances with Glaxo Wellcome, NeoRx Corp., Yamanouchi Pharmaceutical Co., Silicon Graphics, and Digital Equipment Corporation, among others. It is the largest supplier of CAMD software in Japan through its distributor Sony/Tektronix. In addition, Teijin Systems Technology, Ltd., distributes Oxford Molecular's bioinformatics products and Fujitsu distributes its RS3 Discovery™ software for the management of research information. Oxford Molecular has headquarters in Oxford, England and operations in Erlangen (Germany); Campbell, Calif.; Beaverton, Ore.; Rochester, N.Y.; Burnsville, Minn., and Towson, Md.

Dainippon Pharmaceuticals Company Limited
Dainippon Pharmaceutical (Headquarters: Osaka, Japan) was founded in 1897 and its revenues for the year ended March 31, 1997 were ¥137.5 billion principally generated from sales of pharmaceutical products. The company is making efforts to develop pharmaceutical products useful for therapy world-wide and has developed and marketed many products originated form its own research such as new quinolone antibacterials, ACE inhibitors and antiepileptics. The company's product range includes antibacterial, cardiovascular and neurological drugs.