Boehringer Ingelheim and Biolipox sign agreement on a new class of drugs to treat pain and inflammation

Ingelheim, Germany and Stockholm, Sweden, 14 November 2005 – Boehringer Ingelheim GmbH and Biolipox announced today that they agreed to a worldwide exclusive research and license collaboration. The aim of the collaboration is to develop a new class of drugs with a novel mechanism of action for the treatment of pain and inflammation. Under the terms of the agreement, Boehringer Ingelheim will make an upfront payment, and thereafter milestone and royalty payments. The agreement also includes project specific research funding to Biolipox for a period of three years. Thereafter, Boehringer Ingelheim will be responsible for all further compound development and marketing. In addition, Boehringer Ingelheim and Biolipox will co-promote the products arising from this collaboration in the Nordic and Baltic countries. Financials terms of the agreement were not disclosed; however, the value of the agreement reflects an opportunity with great innovative value and large market potential. In addition, the co-promotion will enable Biolipox to build up its own commercialization capabilities. The collaboration is focused on Biolipox pre-clinical project on prostaglandin (PG) E2. PGE2 is an endogenous substance that is central to various inflammatory processes. Biolipox is currently undertaking the development of a drug which specifically inhibits PGE2 synthesis. Thanks to its selective inhibition, the drug could have fewer side effects than existing pain medications, such as the NSAIDs. “We are impressed by the quality of Biolipox’s research activities and expertise in the area of arachidonic acid pathways”, says Dr Andreas Barner, Vice-Chairman of the Board Corporate Division Pharma Research, Development and Medicine at Boehringer Ingelheim. “As a research-driven pharmaceutical company, Boehringer Ingelheim is committed to discovering and developing products which represent high therapeutic value. The medical need in the area of pain and inflammation is considerable and this collaboration has the potential to meet the patients’ and physicians’ demand for a new treatment that is both safe and efficacious.” “We are delighted to enter a collaboration with Boehringer Ingelheim, a global player with expertise in the inflammatory pain area. By combining our skills and resources, we are convinced that new and better drugs will sooner be available, for millions of patients”, says Dr Torbjörn Bjerke, President and Chief Executive Officer of Biolipox. “The agreement is a milestone for Biolipox, providing us with significant funds, a strong partner and a stamp of approval for our novel research. It also aids Biolipox in its long term aspiration to develop into a fully integrated pharmaceutical company.” Notes to editors: About pain and inflammation treatment Inflammation, pain and fever are common phenomena in a variety of conditions – from dislocations and sprains to chronic diseases such as arthritis. About 355 million people around the world are estimated to suffer from arthritis. One out of three adults and nearly 300 000 children in the U.S. live with arthritis. The most common type of arthritis is osteoarthritis and is seen in many people as they age. Rheumatoid arthritis is somewhat less common, but often more disabling and affects young people in their active years. For patients with chronic diseases, pain relief is at hand but often at the cost of side effects. In the U.S., as many as 100,000 patients a year are admitted to hospitals with gastric or intestinal haemorrhaging, resulting from standard treatment with conventional non-selective, non-steroid anti-inflammatory drugs (NSAIDs), with active ingredients such as acetylsalicylic acid and ibuprofen. In 2004, global sales of drugs for treating mild- to moderate pain amounted to 14.5 billion USD. About Boehringer Ingelheim The Boehringer Ingelheim group is one of the world’s 20 leading pharmaceutical companies. Headquartered in Ingelheim, Germany, it operates globally with 144 affiliates in 45 countries and nearly 36,000 employees. Since it was founded in 1885, the family-owned company has been committed to researching, developing, manufacturing and marketing novel products of high therapeutic value for human and veterinary medicine. In 2004, Boehringer Ingelheim posted net sales of 8.2 billion euro while spending nearly one fifth of net sales in its largest business segment Prescription Medicines on research and development. For further information: www.boehringer-ingelheim.com About Biolipox Biolipox is a Swedish, research-intensive pharmaceutical company focusing on the development of new, effective pharmaceuticals against respiratory and other inflammatory diseases, such as asthma, Chronic Obstructive Pulmonary Disease (COPD), rhinitis, pain and arthritis. Leveraging its knowledge in the inflammatory field, especially the arachidonic acid cascade Biolipox has built a portfolio of potential blockbusters within the field of respiratory and anti-inflammatory therapy. The company has 40 employees and is owned by Health Cap, Apax Partners, Sofinnova Partners, SLS Ventures, Credit Agricole Private Equity, Auriga Partners and the founders. For further information: www.biolipox.com For further information, please contact: Ute E Schmidt External Communications Boehringer Ingelheim +49 6132 77 97296 Dr. Torbjörn Bjerke President and CEO Biolipox AB (publ) +46 (0) 708 66 19 90 mobile + 46 (0)8 545 28 140 direct office E-mail: torbjorn.bjerke@biolipox.com