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Isis Enters Broad Collaboration With Ortho-McNeil, Inc. for the Discovery, Development and Commercialization of Antisense Drugs to Treat Metabolic Diseases
Date:9/13/2007

- Includes license of two antisense drugs in development targeting glucagon

receptor and glucocorticoid receptor - Includes research collaboration to identify antisense drugs to inhibit

additional targets to treat metabolic diseases

- Conference call webcast Thursday, September 13, 9:45 a.m. EDT at

http://www.isispharm.com

CARLSBAD, Calif., Sept. 13 /PRNewswire-FirstCall/ -- Isis Pharmaceuticals, Inc. (Nasdaq: ISIS) today announced a broad collaboration with Ortho-McNeil, Inc., a Johnson & Johnson company, to discover, develop and commercialize antisense drugs to treat metabolic diseases, including Type 2 diabetes. As part of the collaboration, Isis will grant to Ortho-McNeil worldwide development and commercialization rights to two of its diabetes development candidates, ISIS 325568 and ISIS 377131, which selectively inhibit the production of glucagon receptor (GCGR) and glucocorticoid receptor (GCCR), respectively. Additionally, Ortho-McNeil will provide funding to Isis to support the joint discovery of novel drugs to treat metabolic diseases, including diabetes and obesity. After the initial collaboration phase, Johnson & Johnson Pharmaceutical Research & Development, L.L.C. (J&JPRD) will continue development of these drugs.

Ortho-McNeil will pay Isis a $45 million upfront licensing fee, and will provide Isis with research and development funding over the period of the collaboration. In addition to the licensing fee, Isis could receive over $230 million in milestone payments upon successful development and regulatory approvals of ISIS 325568 and ISIS 377131, as well as royalties
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SOURCE Isis Pharmaceuticals, Inc.
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