SWITCH Biotech AG Exclusive Licence to Medication for the Treatment of Skin Diseases

Munich (February 12, 2003) - SWITCH Biotech AG, a biotechnology company specialized in medications for skin diseases, has recently secured exclusive rights to a crucial discovery that has a significant commercial potential in the field of treatment of skin disorders. Researchers at Munich's Ludwig Maximilian University (LMU) and SWITCH Biotech discovered that a cellular target molecule and its modulators play a crucial role in controlling proliferation of cells from the upper layer of the skin (keratinocytes). The discovery could lead to the development of novel treatments for skin disorders associated with aberrant keratinocyte growth, such as psoriasis. Known small molecule modulators of the target, which is a cellular ion-channel, are already used as medications against painful tenseness of muscles. 

SWITCH Biotech has protected the rights to the invention by broadly filed patent applications. The University's rights were exclusively licensed to SWITCH Biotech under a contract negotiated by the central intellectual property management office of the Bavarian Universities, BayernPatent. 

Dr. Jörn-Peter Halle, Chief Business Officer of SWITCH Biotech, commenting on the licensing-in said: "We have very much appreciated the professional manner in which BayernPatent has conducted the license negotiations. Thanks to SWITCH Biotech's expertise in the area of skin diseases we are confident that the results of our joint academic and industrial research efforts will soon lead to an innovative product against skin malfunctions."

About Switch Biotech:
SWITCH Biotech AG carries out genetic research to identify target molecules which are involved in the wound healing process and skin diseases. The objective is to develop, in conjunction with pharmaceutical companies, new medication to be used in the treatment of dermatological complaints (psoriasis, atopic dermatitis etc.) and cutaneous ulcers.

The third round of financing was completed in April 2002, bringing the total investment of this round to 23.8 million Euro. In the previous two rounds of financing the company has received 10.6 million Euro. They were supplied by venture capital providers, private investors, founding members and silent partners.

SWITCH Biotech is based in Neuried, near Munich. The company, which employs 65 people, was founded in 1997 by eight scientists as a spin-off of the Gene Center in Munich.

Further information is available on www.switch-biotech.com .

About BayernPatent:
BayernPatent is the official intellectual property management office of the Bavarian universities, initiated by the Bavarian State Ministry of Science, Research and the Arts and located at the Fraunhofer Society.s patent center in Munich. As one of the biggest agency of this kind in Germany BayernPatent has ten inventor consultants located at nine different sites in Bavaria and eight intellectual property managers at the central Patent- and Licensing Office, all with a profound technical and legal background. With a 1.5 billion Euro budget for research p.a. and about 16,000 scientists working in patent relevant research areas the Bavarian universities cover the strongest innovative pool of technologies in Bavaria.

Presently BayernPatent oversees more than 100 patent families in its portfolio. All important and relevant market areas are represented: life science, chemistry, physics, electronics, engineering, information technology, material science and medical technology. The latest technology offers are presented at www.bayernpatent.de.

Besides BayernPatent the Technology-Transfer-Agencies ForschungsPatent, KinikPatent, Patent and Licensing Agency (PLA) und TT-NGFN are located at the Fraunhofer Patent Centre ( www.pst.fhg.de  ).

Further information can also be obtained from:

SWITCH Biotech AG

Christine Neumüller 
Floriansbogen 2-4 
D-82061 Neuried, Germany

Tel.: 0049-89-74946 291 
Fax: 0049-89-74946 131 
E-mail: christine.neumueller@switch-biotech.com 
http://www.switch-biotech.com