Success Milestone

30 Jun 2005 07:00

Sareum Holdings PLC30 June 2005 For immediate release 30 June 2005 SAREUM HOLDINGS PLC ("Sareum" or "the Company") SUCCESS MILESTONE REACHED IN COLLABORATION Sareum Holdings plc (AIM: SAR), the structure-based drug discovery and servicesbusiness, is pleased to announce that it has reached a key success milestone inits collaboration with an unnamed UK-based central nervous system (CNS) focuseddrug discovery and development company ("the Client"), with whom it has acollaborative agreement first announced on 15 December 2004. Under theagreement, Sareum is providing protein structure determination services tosupport the Client's research against diseases of the CNS. Sareum has nowsuccessfully delivered key structural data and as a result of this the Companyis entitled to its first milestone payment under the agreement. The collaboration is a key component of the Client's innovative research programto discover novel drug candidates for the treatment of CNS diseases. Sareum'sexpertise in protein expression and structure determination has lead to thesuccessful determination of the three-dimensional structure of the proteintarget of the research program in complex with drug and potential drug compoundsthat inhibit its action. This information will assist the Client's scientists understand the precisenature of the interactions between these compounds and the target protein,thereby assisting the Client's scientists in the development of more effectivetreatments of diseases of the central nervous system. Sareum will continue to determine the structures of the Client's compounds incomplex with the target protein as part of Sareum's ongoing commitment to thiscollaboration. Financial terms have not been disclosed. Commenting on the agreement, Sareum's Chief Executive Officer, Dr Tim Mitchell,said: "We are extremely pleased to be successfully delivering on thiscollaboration. This demonstrates our ability to provide valuable information toour collaborators and improve the ultimate success of our Client's drugdiscovery programmes." For further information: Sareum Holdings 01223 497700Tim Mitchell, Chief Executive Officer Buchanan Communications 020 7466 5000Mark Court, Mary-Jane Johnson About Sareum Holdings plc Sareum Holdings plc is a specialist structure based drug discovery businessheadquartered in Cambridge, UK. The Company was formed in August 2003 todiscover new drugs for the treatment of cancer and to provide a range of drugdiscovery services to the pharmaceutical industry. Sareum's unique approach aimsto halve the time it takes to discover new drug candidates. Structure-based drug discovery involves the determination of a disease causingprotein's three-dimensional structure. Once the structure is known, novelchemical entities are designed to 'lock-in' to the protein with the aim ofreversing or arresting a disease's progression. Sareum's approach to structure based drug discovery is to produce multiplerecombinant proteins primarily through a baculovirus expression system;determine their structure using x-ray crystallography; and then use theCompany's template-molecule x-ray screening technology to identify new chemicalentities that interact with the target protein. Sareum then uses itshigh-throughput medicinal chemistry platform to rapidly synthesise furthermolecules and develop the most promising into potential drug candidates. Sareum offers its accelerated drug discovery capabilities on a fee basis to thepharmaceutical and biotechnology industries. Sareum intends to license out itsinternally generated drug candidates at the Phase I or Phase II clinical trialsstage. Sareum joined the AIM market of the London Stock Exchange in October 2004 andtrades under the symbol SAR. For further information, please visitwww.sareum.co.uk This information is provided by RNS The company news service from the London Stock Exchange