Oxford Biomedica Signs Lentivector Licensing Agreement With Merck & Co

Oxford , UK : 5 February 2004 – Oxford BioMedica announced today that it has signed a licence agreement for its LentiVector technology with Merck & Co., Inc. The agreement allows Merck & Co., Inc. to use the Company’s proprietary LentiVector gene delivery system for research activities. Under the terms of the agreement, Oxford BioMedica will receive an upfront licence payment and an annual maintenance fee.

Three issued US patents, of which the most recent was issued in December 2003, and one granted European patent, support the Company’s LentiVector technology. The patents include broad composition of matter and methods of production claims for lentiviral vector gene delivery systems of both human and non-human origin. The LentiVector system is a powerful technology for gene delivery to a wide range of cell and tissue types. The technology has applications both in therapeutic products and as a drug discovery tool for target validation and the creation of targeted disease models. It has also been shown to substantially enhance the efficiency of making transgenic birds and mammals.

Commenting on the news Oxford BioMedica’s Chief Executive, Prof. Alan Kingsman said “This agreement with Merck is further endorsement of Oxford BioMedica’s patent position in the field of lentiviral delivery systems and the broad utility of the LentiVector technology. We are delighted to have reached this agreement with Merck ”.

Notes to editors

1. Oxford BioMedica

Oxford BioMedica (LSE: OXB) is a biopharmaceutical company specialising in the development of gene-based products for a range of unmet medical needs with an emphasis on new cancer products, which combine novel mechanisms of action with very low side effects, and innovative neurotherapy products, which address large and, in several areas, untapped markets. The products are all protected by multiple patents comprising a total intellectual property portfolio of some 69 patent families, which represents one of the broadest patent estates in the field.

In addition to its technical research skill-base, Oxford BioMedica has in-house clinical, regulatory and manufacturing know-how. The development pipeline includes two novel anti-cancer products in clinical trials and a gene-based treatment for Parkinson’s disease, which is in late preclinical studies.

Oxford BioMedica has a wholly owned subsidiary in San Diego , USA . Oxford BioMedica has corporate collaborations with Wyeth, Intervet, Amersham, Arius Research, Kiadis and Viragen.

Further information is available at http://www.oxfordbiomedica.co.uk

2. LentiVector technology

Oxford BioMedica has three issued US patents for its LentiVector technology. These include broad composition of matter claims and methods of production claims for lentiviral vector gene delivery systems of both human and non-human origin.  The patents also cover derivatives of lentiviral vector systems that, unlike many versions of lentiviral vectors, have real clinical utility because of their safety. The Oxford BioMedica team was the first to construct lentiviral vectors that contain no viral genes at all, and which comprise the minimum number of viral components in the viral particles. It is this minimisation of the vectors that is the subject of these patents. This work was done using vectors based on HIV and Equine Infectious Anaemia Virus (EIAV), a horse virus that is not linked to any disease in humans. The EIAV system is Oxford BioMedica’s system of choice because of its superior safety profile.

Oxford BioMedica’s LentiVector gene delivery technology is arguably the most potent system currently available for treating diseases of the central nervous system, particularly chronic neurodegenerative disorders. Oxford BioMedica has shown that minimal lentiviral vectors are able to deliver genes to a wide range of dividing and non-dividing cells, including neurones in the brain.

The Company has established a neurotherapy pipeline of product candidates based on its LentiVector technology, which includes ProSavin^® for Parkinson’s disease, RetinoStat™ for retinopathy, MoNudin™ for motor neuron disease and Innurex™ for nerve repair.

For further information, please contact:

Oxford BioMedica plc: Professor Alan Kingsman, Chief Executive, +44 (0)1865 783 000

City/financial enquiries: Mike Wort/James Chandler, Beattie Financial, +44 (0)20 7398 3300

Scientific/trade press enquiries: Katja Stout/Ellen Marriage, Northbank Communications, +44 (0)20 7886 8150