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Pharmacopeia and GlaxoSmithKline Collaboration Identifies Two Additional Lead Compounds
Date:11/27/2007

Lead Selections Trigger Milestone Payments Totaling $1 Million to

Pharmacopeia

PRINCETON, N.J., Nov. 27 /PRNewswire-FirstCall/ -- Pharmacopeia (Nasdaq: PCOP), an innovator in the discovery and development of novel small molecule therapeutics, announced today that it has identified two new lead compounds for advancement in its alliance with GlaxoSmithKline (NYSE: GSK), through its collaboration with the Center of Excellence for External Drug Discovery (CEEDD). The first of the lead compounds forms the basis of a new lead optimization program focused on identifying a treatment for respiratory disease. The other newly identified lead compound is the second from a program in inflammatory pain. As a result of the identification of these new lead compounds, Pharmacopeia will receive milestone payments totaling $1 million from GSK.

Under the terms of the companies' collaboration, Pharmacopeia has received $10 million from GSK in connection with early discovery activities and is entitled to an additional $5 million payment upon the completion of additional early discovery activities. Pharmacopeia is also entitled to success-based milestone payments totaling up to $83 million per program and potentially double-digit royalties on the sales of any product commercialized by GSK under the multi-program alliance. Should GSK decline its option to complete pivotal trials of alliance programs, Pharmacopeia may independently pursue them, subject to its obligations to GSK under the agreement.

"With the identification of these two compounds, our collaboration has now identified a total of three new leads this year," said Hugh Cowley, Senior Vice President of GSK and head of the CEED
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SOURCE Pharmacopeia
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