17 January 2001

ChemOvation and KuDOS Pharmaceuticals to merge

ChemOvation Limited (Horsham UK) combinatorial chemistry specialists, and KuDOS Pharmaceuticals Limited (Cambridge UK), an emerging pharmaceutical company focused on the discovery and development of novel therapeutic agents for use in cancer therapy, have announced today that they are to merge. Exact terms were not disclosed.

ChemOvation will continue to trade under its own name. The company will also be expanded to include the development of chemistry based on KuDOS technology and a modelling function. As a result of the merger and associated expansion ChemOvation intends to move to larger premises to accommodate the increased number of chemists that will be required.

Alan Stuttle, CEO of ChemOvation said, "We are delighted to form this relationship with KuDOS". He also commented that the merger would allow the development of a strong chemistry team and permit ChemOvation to increase its capabilities in the design of high purity combinatorial libraries and client-directed synthesis. "ChemOvation is looking forward to aligning our chemical expertise with KuDOS' cutting-edge research in the field of DNA repair inhibition."

KuDOS was established in 1999 with initial funding from a group comprising Advent, Schroder Health Care Ventures and 3i plc. The company is focused in the discovery and development of specific inhibitors of enzymes involved in DNA repair. DNA repair is a process critical to the normal functioning of all cells in the body. Recent developments have greatly improved the understanding of the mechanisms used by cells to identify and repair breaks in DNA, and the potential for drugs that target DNA repair in the treatment of a range of human diseases including cancer. The company retains strong links with the academic laboratory of Professor Stephen Jackson of the Wellcome/CRC Institute in the University of Cambridge, on whose initial work the KuDOS programmes are based.

"Chemistry will have a key role in the successful growth of KuDOS", said Barrie Ward, CEO of KuDOS. "This merger will provide us with a strong chemistry resource through which we can pursue the development of proprietary compounds. We look forward to the success of KuDOS/ChemOvation in identifying drug candidates as specific inhibitors of DNA repair."

Further Information:

Dr Keith Menear

ChemOvation Ltd
Foundry Lane
Horsham
West Sussex, RH13 5PX
United Kingdom

Phone +44 (0)1403 248844
Fax +44 (0)1403 248855
Email:keith.menear@chemovation.com