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SGX Provides Update on BCR-ABL Collaboration
Date:9/10/2007

SAN DIEGO, Sept. 10 /PRNewswire-FirstCall/ -- SGX Pharmaceuticals, Inc. (Nasdaq: SGXP) today provided an update on its license and collaboration agreement with Novartis focused on the development and commercialization of BCR-ABL inhibitors for the treatment of both first line and drug resistant Chronic Myelogenous Leukemia (CML).

Under the collaboration, SGX and Novartis are progressing a number of potential drug candidates, with the anticipated timeline for filing an IND of the second half of 2008, contingent upon the successful completion of further preclinical studies, including formal toxicology studies and drug formulation studies.

One of the candidates from the collaboration, SGX393, is a potent inhibitor of the T315I mutant (as well as other drug resistant mutants and wild type BCR-ABL) and has its most likely application in drug resistant CML. Pursuant to an amendment to the license and collaboration agreement, SGX has obtained the right to develop and commercialize SGX393 outside of the collaboration, subject to a reacquisition right of Novartis that is exercisable at a future date. In addition, the amendment gives Novartis responsibility for the selection of all future development candidates as well as responsibility for the clinical development of additional compounds from the collaboration. The financial terms of the collaboration agreement remain unchanged.

The amendment is intended to maximize the potential output of the Novartis-SGX collaboration. Going forward, collaboration efforts will continue to focus on drug candidates that have potential for front-line usage. SGX now has the additional opportunity to bring forward a molecule in SGX393 which provides the potential for accelerated
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SOURCE SGX Pharmaceuticals, Inc.
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