Pharmacopeia Announces Third Quarter 2007 Financi...(ams. -- In its alliance with GlaxoSmi...),Health

-- In its alliance with GlaxoSmithKline (GSK), Pharmacopeia reported that

it received a $500 thousand milestone payment for identification of a

compound for advancement into lead optimization six months ahead of the

original schedule. The compound is being evaluated as a potential

treatment for inflammatory pain. Pharmacopeia has already received $10

million from GSK for completion of early discovery activities and is

entitled to receive 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 for any drug development program pursued through

the multi-program alliance and up to double-digit royalties on the

sales of any product commercialized by GSK from the alliance.

Subsequent to the end of the third quarter:

Pharmacopeia announced that it has licensed a Phase 1 selective androgen receptor modulator (SARM) program from BMS, including lead and back-up compounds. Pharmacopeia plans to develop the lead compound from this program, PS178990, as a potential novel treatment for muscle wasting associated with a number of serious chronic and acute medical conditions such as surgical and severe burn recovery, end-stage renal disease and cancer- and AIDS-related cachexia. The SARM program has a broad portfolio of pending patent applications that, if granted, would provide intellectual property coverage to the SARM program through at least 2023. PS178990 has been well characterized by BMS both in pre-clinical studies and in a Phase 1 single ascending dose study. The company plans to conduct several Phase 1 studies in 2008, including a multiple ascending dose study of PS178990, to obtain additional safety and tolerability data before entering Phase 2.

In consideration for the SARM program license, Pharmacopei
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