[news 1999-2000]

Cytochroma, Allergan team up in drug discovery deal worth US $5 million

June 1, 1999

KINGSTON, ON -- Cytochroma Inc. has entered into a two-year collaboration with Allergan, Inc. (NYSE: AGN) to develop compounds which modulate retinoic acid (vitamin A) metabolism. The deal, which includes up-front payments, research support and milestone payments to Cytochroma, is valued at US $5 million. In addition, Cytochroma will be entitled to royalties on sales of all drugs marketed as a result of the collaboration. Cytochroma President & CEO Dr. Joe Elliot said, "This is an outstanding deal for a company as young as Cytochroma and represents an important validation of Cytochroma's technology base and discovery capabilities."

Under the collaboration, Cytochroma will screen Allergan compounds to identify inhibitors of vitamin A metabolism. Enzymes responsible for the breakdown of retinoic acid were discovered in the laboratories of Cytochroma founding scientists Dr. Martin Petkovich and Dr. Glenville Jones at Queen's University in Kingston.

Natural increases in metabolism of retinoic acid following application of creams and ointments containing vitamin A derivatives have limited the effectiveness of such preparations in the treatment of acne, psoriasis and age-related skin conditions. The market for vitamin A and other retinoid therapeutic compounds is estimated to be in excess of US $1 billion.

Cytochroma Inc. is a venture-backed development-stage biotechnology company based in Kingston, Ontario. The company is focused on identifying modulators of cytochrome P450 enzymes involved in key metabolic pathways of substances ranging from vitamins to steroids. By modifying cytochrome P450-based metabolism, it is possible to alter the sensitivity of tissues to the normal effects of these endogenous substances as well as various drugs whose activities are affected by specific cytochrome P450s.

Cytochroma was founded in 1997 by PARTEQ Innovations, the technology development corporation of Queen's University, and received initial seed financing from University Medical Discoveries Inc. In February 1999, a consortium of three Canadian venture capital groups provided first round financing to Cytochroma. Cytochroma's venture investor group includes the Canadian Medical Discoveries Fund (CMDF) of London, Ontario, in collaboration with MDS Capital Corp. of Toronto, GeneChem LP of Montreal and Working Ventures Canadian Fund Inc.

Allergan, Inc. headquartered in Irvine, California, is a technology driven, global health care company, providing eye care and specialty pharmaceutical products worldwide. Allergan develops and commercializes products in the eye care pharmaceutical, ophthalmic surgical device, over-the-counter contact lens care, movement disorder, and dermatological markets that deliver value to their customers, satisfy unmet needs and improve patients' lives.

"Allergan is an impressive company, both in terms of their strong management team and superior science, and we are delighted to be working with them," says Cytochroma's Vice-President and Co-Chief Scientific Officer Dr. Martin Petkovich.

Contacts:
Dr. Joseph J. Elliot
President & CEO
Cytochroma Inc.
Phone: (613) 531-9995
Fax: (613) 531-6580
Email: info@cytochroma.com

Ira Haskell
Director of Corporate Communications
Allergan, Inc.
Phone: (714)-246-4515
Email: Haskell_Ira@Allergan.com

John Molloy
President and CEO
PARTEQ Innovations
Phone: (613) 533-2342
Fax: (613) 533-6850
Email: molloyj@post.queensu.ca