ETX.L Regulatory News (ETX)

e-therapeutics PLC

Collaboration with Galapagos to discover new therapeutic strategies for the treatment of idiopathic pulmonary fibrosis and other fibrotic conditions

Oxford, UK, 10th June 2020: e-therapeutics plc (AIM: ETX.L, "e-therapeutics" or "the Company") today announces that it has entered a collaboration agreement with Galapagos NV ("Galapagos") to identify new therapeutic approaches to modulate a specific mechanism involved in idiopathic pulmonary fibrosis (IPF) and potentially in other fibrotic indications. e-therapeutics will continue to be free to explore, both internally and with additional partners, all other pathways involved in IPF and fibrosis.

This collaboration combines e-therapeutics' expertise in network biology and in silico phenotypic screening with Galapagos' deep knowledge of IPF and fibrosis. e-therapeutics will apply its proprietary Network-driven Drug Discovery (NDD) platform and know-how to identify new strategies to modulate a specific pathway of interest to Galapagos, selecting potentially clinically relevant compounds for the treatment of IPF and fibrosis. As part of the collaboration, e-therapeutics will be responsible for all computational activities and Galapagos will perform all experimental testing.

Under the terms of the agreement, e-therapeutics will receive upfront and near-term payments material to the cash position of the Company. e-therapeutics is also eligible to receive pre-clinical and clinical development and commercial milestone payments.

In the United States, 30-40,000 cases of IPF are diagnosed each year. IPF is associated with a progressive loss of lung function and median survival without therapy is limited to between two and three years. Currently available treatments slow disease progression but prognosis remains poor and IPF is the leading cause of lung transplantation. There is a high unmet need for novel and well-tolerated agents able to reduce lung function decline and improve and prolong patients' lives. Other fibrotic conditions, such as those affecting the liver or the kidneys, affect a significant proportion of the population worldwide and also represent urgent medical needs.

Ali Mortazavi, Executive Chairman of e-therapeutics, commented: "We look forward to working with Galapagos on this project in areas of clear unmet medical need such as IPF and fibrosis. This collaboration provides additional validation of our platform and its applications in drug discovery and development. Our platform is scalable and can be applied to all areas of biology, providing an engine for diverse drug discovery projects and enabling us to help partners in numerous ways. This is our third collaboration with a leading biopharmaceutical company, and we remain in business development discussions for both NDD and our functional genomics platform, GAINs."

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About e-therapeutics

e-therapeutics is an Oxford, UK-based company with a unique and powerful computer-based approach to drug discovery, founded on our industry-leading expertise in network biology.

We have created two proprietary, unique and productive technologies. The first is Network-driven Drug Discovery ("NDD"), which is based on cutting-edge network science, statistics, machine learning and artificial intelligence. NDD allows the more efficient discovery of new and better drugs and has been validated in multiple and diverse areas of biology.

The second is Genome Associated Interaction Networks ("GAINs"). GAINs is a revolutionary and entirely novel approach to functional genomics, based on the same validated network biology and analytics expertise that underpins our NDD technologies. GAINs analyses human genetic data to provide a deep and valuable understanding of the mechanisms that cause disease. GAINs has the potential to uncover unrecognised disease processes and pathways and can enable the discovery of novel drugs, diagnostics and biomarkers in a way not previously possible from population genomics data, such as genome-wide association studies ("GWAS").

We have deployed our highly productive drug discovery platform technologies to develop our own IP-protected, pre-clinical drug discovery programmes that are available to partners seeking to acquire or in-license novel and differentiated assets.

We have partnerships with Novo Nordisk in Type-2 diabetes and a US-based, top 5 pharmaceutical company in neurodegeneration. We are working on different types of collaborative partnerships with biotech, pharma and other technology companies to create sustainable mutual value.