PanGenetics B.V. Licenses Therapeutic Antibody for Treatment of Pain from Lay Line Genomics S.p.A.

PanGenetics B.V. and Lay Line Genomics S.p.A. (LLG) jointly
announced today that the companies have entered into a collaboration
in the field of therapeutic antibodies for the treatment of pain.
Under the terms of the collaboration agreement, LLG has granted to
PanGenetics exclusive rights to Hu-alphaD11, a humanized antibody
against nerve growth factor (NGF) that has shown very promising
effects in preclinical animal models of inflammatory and chronic pain.
The companies will work together on the preclinical program and
PanGenetics will assume full responsibility for the clinical
development and commercialization of Hu-alpha-D11. In addition to
research funding and an upfront payment, LLG will receive undisclosed
milestone payments and royalties on commercial sales.

New therapies for the treatment of chronic pain represent a very
important medical need. The currently used therapies, mainly opioids
such as morphine, are often associated with severe side-effects and
therefore new therapeutic classes with improved safety and efficacy
are needed. A very promising new approach for the treatment of chronic
pain is the targeting of the NGF signaling pathway, for which a key
role in the pathophysiology of pain is strongly supported by recent
scientific evidence and clinical data. The collaboration between
PanGenetics and LLG will focus on the translation of this data into
clinical benefit for patients suffering from pain with several
etiologies, including inflammatory, neuropathic and cancer pain.

"After our recently announced license agreement with Schering
Plough, this collaboration with LLG adds another highly promising
antibody to the portfolio of therapeutic antibodies that we have
assembled during the past year" said Kevin Johnson, CEO of
PanGenetics. "With the preclinical support of LLG, it is our clear
goal to have Hu-alphaD11, which will be renamed PG110, ready for human
trials in 2008. The focus of this program on nervous system disease
provides important synergy with our PG102 program, for which we are
currently planning a clinical study in MS patients, and will allow us
to maximize the output from our lean organization."

Antonino Cattaneo, CSO and President of LLG added: "We are
thrilled to work together with PanGenetics on this very exciting
program. Our in-depth knowledge of NGF and its role in the biology of
pain combined with the experience of the PanGenetics team in the
preclinical and clinical development of therapeutic antibodies will
allow a very rapid progressing of this program. This agreement further
contributes to establishing LLG as a key player in the field of
therapeutic antibodies against neurological disorders of large unmet
medical need, this antibody being the second licensed out by LLG in
the current year. Furthermore, this collaboration will allow us to
further focus our efforts on our programs in Alzheimer's Disease and
on our SPLINT antibody generation platform."

About NGF

Nerve growth factor (NGF) is the prototypical member of the family
of neurotrophin growth factors that are involved in the growth and
survival of nervous tissue. NGF and its receptors, the tyrosine-kinase
receptor TrkA and the p75 NTR receptor are responsible for the
survival and maintenance of specific subsets of peripheral neurons and
basal forebrain cholinergic nuclei during development and maturation.
In the adult peripheral nervous system, NGF signaling plays a key role
in pain transduction mechanisms. Furthermore, NGF levels are increased
in inflammatory processes and administration of exogenous NGF leads to
hyperalgesia, hypersensitivity to thermal stimulation and muscular
pain. These multiple lines of evidence qualify NGF as a very promising
target for therapeutic intervention in pain.

About Hu-alphaD11

Hu-alphaD11 is a fully humanized antibody that binds to NGF with
very high affinity, thereby preventing the interaction of NGF with
both its receptors TrkA and p75. Hu-alphaD11 does not cross-react with
other neurotrophins and exerts its inhibiting activity at lower than
equimolar ratios with respect to NGF. The antibody therefore is a
highly specific function-blocking molecule that is able to neutralize
NGF bioactivity, both in vitro and in vivo. The antibody has been
humanized applying LLGs proprietary methodology.

About PanGenetics B.V.

PanGenetics is headquartered in Utrecht, The Netherlands with an
office near Cambridge in the UK. The company specialises in taking
antibodies at the late research stage through to clinical proof of
concept. The company employs a lean business model with most
development activities outsourced to specialist providers in Europe.
The most advanced program is PG102, a CD40 antagonist that has already
shown promise in an open label phase Ib/IIa Crohns study. The
company's Management, Board and Advisors comprise many of the worlds
leading antibody developers.

About LLG S.p.A.

Lay Line Genomics (LLG) is a private biotechnology company focused
on the discovery and development of innovative therapies for
Alzheimer's and other neurological diseases. Founded in 2001 as a spin
out of the International School of Advanced Studies (SISSA) in
Trieste, LLG has developed an original pipeline of antibodies and
biopharmaceuticals to take into clinical development for Alzheimer's
and other neurodegenerative diseases. The company licensed out its
first therapeutic antibody in 2006. LLG's approach to Alzheimer 's
disease pursues therapeutic and diagnostic developments in parallel.
LLG's proprietary antibody technology platform SPLINT allows the rapid
generation of a broad range of recombinant fully human antibodies that
fuel the LLG pipeline and provides broad opportunities for
partnerships. LLG currently employs 20 people and has sites in Rome
and Trieste, Italy.