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DiObex and Camurus Sign License Agreement for the Development of DIO-901 in FluidCrystal(R) Extended Release Technology
Date:3/18/2008

Development program for prevention of insulin-induced hypoglycemia in

diabetes

SAN FRANCISCO and LUND, Sweden, March 18 /PRNewswire/ -- DiObex and Camurus announced today that they have signed a license agreement to develop DIO-901(very low dose glucagon) in the Camurus drug delivery technology, FluidCrystal(R). The development candidate is an extended release formulation of low dose glucagon for the prevention of insulin-induced hypoglycemia in patients with diabetes.

"Intensive glycemic control is beneficial for patients with diabetes, but it increases their risk of hypoglycemia, which can lead to a spectrum of problems ranging from reduced quality of life to coma and death," said David Cory, DiObex CEO. "This license agreement and development program reflects our commitment to deliver an extended release form of low dose glucagon to the market for the prevention of insulin-induced hypoglycemia."

There is no product approved for the prevention of insulin-induced hypoglycemia in patients with diabetes. DiObex has successfully completed three Phase 1 proof-of-principle studies using very low dose glucagon infusions in type 1 diabetic patients. DIO-901 has received Fast Track status from the FDA for this program. The DIO-901 FluidCrystal(R) extended release formulation is scheduled to enter human clinical trials in the second half of 2008.

"We are very pleased to enter into this license agreement with DiObex and have great hope for the development of DIO-901. The extended release version of DIO-901 using our FluidCrystal(R) delivery technology has the potential to fulfill an important medical need in the treatment of diabetes," said Fredrik Tiberg, President and CEO of Camurus AB.

Terms of the agreement include an undisclosed signing fee, development milestones, future royalties on product sales and a share of any potential DiObex sublicensing revenues.

About DiObex

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SOURCE DiObex, Inc.; Camurus AB
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