ACRUX AND ORGANON FURTHER EXPAND THEIR COLLABORATION

· Organon, renowned for holding a leading position in gynecology, licenses Acrux spray technology for transdermal delivery of a non-hormone women’s health drug

· New global development and commercialisation agreement follows recently announced contraceptive spray agreement

Melbourne, Australia, 7 March 2007: Drug delivery company Acrux (ASX: ACR), announced today that it has signed a further agreement with Organon, the human healthcare business unit of Akzo Nobel, expanding the two parties’ collaboration. This follows the recently announced deal under which Organon and Acrux will develop and commercialise contraceptives, delivered through the skin using Acrux’s unique spray technology.

Under the new agreement, Organon has licensed Acrux’s technology for delivery of a non-hormone, proprietary Organon drug, for a substantial global women’s health market.

“The expansion of our important relationship with Organon, one of the leading innovators in women’s health, confirms that our unique spray technology has even broader potential” said Acrux CEO Richard Treagus. “This adds a new, non-hormone drug to our pipeline and demonstrates the potential to use the technology to deliver drugs owned by our partners”, he added.

Organon executive vice president, Research and Development, David Nicholson commented “The Acrux technology is an appealing method of delivering medication, with the potential to extend the choices available for women to fit their needs and lifestyle.”

Acrux will be responsible for developing formulations of the undisclosed compound and upon successful completion; Organon will undertake and fund all clinical trials, regulatory submissions, manufacturing and commercialization efforts.

Acrux may receive payments totalling US$12 million as development and regulatory milestones are achieved. Acrux will also earn royalties on worldwide sales of the product.

About Acrux - www.acrux.com.au 

§ Acrux is an Australian drug delivery company, developing and commercialising a range of patient-preferred, patented pharmaceutical products for global markets, using its innovative technology to administer drugs through the skin.

§ Fast-drying, invisible sprays or liquids provide a delivery platform with low or no skin irritation, superior cosmetic acceptability and simple, accurate and flexible dosing. The technology platform is covered by broad and well-differentiated, issued patents.

§ Acrux’s products in clinical development include:

o Estradiol MDTS® (EvaMist™ in the USA) to treat menopause symptoms

o Testosterone MDTS® to treat decreased libido in women

o Nestorone® MDTS® contraceptive spray for women

o Fentanyl UDTS™ to treat chronic pain

o Testosterone MD-Lotion® to treat testosterone deficiency in men

§ Acrux has licensed worldwide rights for certain MDTS® contraceptives to Organon, USA rights for Estradiol MDTS® and Testosterone MDTS® to VIVUS and AUS/NZ distribution rights for Testosterone MDTS® and Fentanyl UDTS™ to CSL Limited. Acrux has also licensed its technology to Eli Lilly and Company for veterinary healthcare products.

About Organon – www.organon.com

Organon creates, manufactures and markets innovative prescription medicines that improve the health and quality of human life. Through a combination of innovation and business partnerships, Organon seeks to leverage its position as a leading biopharmaceutical company in each of its core therapeutic fields: fertility, gynecology and selected areas of anesthesia. It has extensive expertise in neuroscience and a rich and focused R&D program. Research areas also include immunology and specific areas of oncology. Organon products are distributed in over 100 countries worldwide, of which more than 50 have an Organon subsidiary. Organon is the human healthcare business unit of Akzo Nobel.

Contact:
Northbank Communications
Justine Lamond
Ph: +44 (0)20 7268 3242
acrux@northbankcommunications.com 

Richard Treagus, Acrux CEO
Ph: +61 3 8379 0100
+61 417 520 509
richard.treagus@acrux.com.au 

Safe Harbor Statement

This press release may contain forward-looking statements. These forward-looking statements, addressing without limitation such key issues as growth strategy, future financial results, market positions, and product development, are based on current expectations of future events and circumstances and can be identified by the fact that they use words such as "will", "anticipate", "estimate", "expect", "project", "intend", "plan", "believe", "target", "forecast", and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business prospects.

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The forward-looking statements in this press release should be evaluated together with the many uncertainties that affect Organon BioSciences' business, particularly but without limitation including general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; and trends toward health care cost containment.

Please find below the latest announcement from Australian transdermal drug delivery company Acrux. Should you require any further information, please contact Justine Lamond at Northbank Communications on +44 (0) 7268 3242 or acrux@northbankcommunications.com