Biotech News - GlaxoSmithKline and Pharmacopeia

GlaxoSmithKline and Pharmacopeia Enter Into Drug Discovery and
Development Alliance

Broad Alliance is First for GSK's Recently Established Center of
Excellence for External Drug Discovery

Pharmacopeia (Nasdaq: PCOP - News), an innovator in the discovery
and development of novel small molecule therapeutics, and
GlaxoSmithKline (NYSE: GSK - News), a leading global pharmaceutical
company, today announced the formation of a new drug discovery and
development alliance. GSK, through its recently established Center
of Excellence for External Drug Discovery (CEEDD), and Pharmacopeia
will collaborate to deliver clinically validated therapeutic
candidates to GSK's global research and development organization.

The aim of the alliance is for Pharmacopeia to discover active
molecules and bring them forward to clinical proof of concept,
yielding novel candidates in broad therapeutic areas. GSK will have
exclusive options to conduct Phase III clinical trials and to
commercialize pharmaceutical products from the collaboration on a
worldwide basis. Pharmacopeia will retain rights to programs for
which GSK does not exercise its option.

Maxine Gowen, Ph.D., Senior Vice President of GSK and head of the
Center of Excellence for External Drug Discovery at GSK stated, "The
Pharmacopeia relationship exemplifies a new collaborative model for
GSK. Through the CEEDD we will ally GSK's understanding of medical
needs with biotech innovation to bring new medicines to patients. At
the same time as GSK provides its broad experience, Pharmacopeia
brings its unique perspective that, consistent with the CEEDD's
mission, adds to our internal capabilities. We are very pleased to
be able to announce the Pharmacopeia alliance as the first new
collaboration for the CEEDD."

Under the terms of the agreement, Pharmacopeia will receive $15
million in cash payments from GSK. In addition, each drug
development program pursued under the alliance will be subject to
success-based milestone payments totaling up to $83 million for a
successful program and a double-digit royalty. In connection with
the alliance, GSK also receives warrants to purchase Pharmacopeia
stock at a 25% premium to the trailing 30-day closing price average
at the commencement of the alliance.

"The right pharma collaborators - and GSK is clearly one of the
best - can contribute exquisitely to our strategy of forward
integrating to clinical validation and managing the risks and
returns of drug discovery and development," said Les Browne, Ph.D.,
President and Chief Executive Officer of Pharmacopeia. "This new
alliance with GSK's CEEDD, which is unlike anything we have done
previously, is structured to leverage the existing capabilities at
Pharmacopeia for discovery as well as evolving our development
capabilities. Importantly, commensurate with our taking compounds
further along in the development pipeline, the economics of the
alliance reward us appropriately for success."

About The CEEDD

GlaxoSmithKline is enhancing the way it discovers and develops drugs
by creating a small dedicated team who will feed the GSK pipeline
solely through the efforts of its external partnerships. The CEEDD
(Center of Excellence for External Drug Discovery) was formed as
further validation of GSK's strategy to create small, independent
and accountable R&D teams (Centers of Excellence for Drug Discovery
or CEDDs). In essence, the CEEDD will 'virtualize' a portion of the
GSK pipeline; namely, from Target to Clinical PoC, by forming
multiple risk-sharing/reward-sharing alliances. Capitalizing on the
speed and efficiency of its partners will allow GSK to deliver
pharmaceuticals products faster to patients.

About GlaxoSmithKline

GlaxoSmithKline - one of the world's leading research-based
pharmaceutical and healthcare companies - is committed to improving
the quality of human life by enabling people to do more, feel better
and live longer.

About Pharmacopeia

Pharmacopeia is committed to creating and delivering novel
therapeutics to address significant medical needs using proprietary
technologies and processes. The Company is advancing multiple
internal programs towards validation in clinical trials.
Pharmacopeia's later stage portfolio currently comprises multiple
partnered programs that have been advanced into clinical trials with
further programs in late-stage preclinical development. The Company
also has several internal programs in advanced preclinical
optimization and multiple partnered programs in discovery that are
expected to drive the Company's clinical portfolio in the future.

Contact:
Michio Soga
Executive Vice President and Chief Financial Officer
Pharmacopeia
(609) 452-3643
irreq@pcop.com

Cautionary statement regarding forward-looking statements
Under the safe harbor provisions of the US Private Securities
Litigation Reform Act of 1995, the company cautions investors that
any forward-looking statements or projections made by the company,
including those made in this announcement, are subject to risks and
uncertainties that may cause actual results to differ materially
from those projected. Factors that may affect the Group's operations
are described under 'Risk Factors' in the Operating and Financial
Review and Prospects in the company's Annual Report on Form 20-F for
2005.

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, 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 ability to
successfully perform under its new collaboration with
GlaxoSmithKline, the planned cessation of full-time employee funding
from Pharmacopeia's existing collaborations with Schering-Plough,
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 build its
pipeline of novel drug candidates, through its own internally-funded
drug discovery programs, third party collaborations and in-
licensing, Pharmacopeia's expectations concerning the development
priorities of its collaborators and their ability to successfully
develop compounds, Pharmacopeia's ability to raise additional
capital, 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, additional competition, changes in
economic conditions, and other risks described in documents
Pharmacopeia has filed with the Securities and Exchange Commission,
including its Report on Form 10-K filed on March 20, 2006 and
subsequent filings under the Securities and Exchange Act of 1934.
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 disclaims any undertaking to publicly
update or revise any forward-looking statements contained herein to
reflect any change in its expectations with regard thereto or any
change in events, conditions or circumstances on which any such
statement is based.

---------------------------------------------------------------------
-----------
Source: Pharmacopeia

http://www.arizonabiotech.com/
http://groups.yahoo.com/group/biotech-news/
http://www.arizonaentrepreneurs.com/
http://www.azhttp.com/

Yahoo! Groups Links

<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/biotech-news/

<*> To unsubscribe from this group, send an email to:
biotech-news-unsubscribe@yahoogroups.com

<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/