In this alliance, Neurion and Lilly will collaborate in the discovery of novel small molecule drugs targeting ion channels for various CNS indications. This collaboration will combine Neurion's Precision Neurochemistry Platform (NP2) technology and capabilities with Lilly's discovery resources and experience. Under its agreement with Lilly, Neurion will receive cash payments. Lilly has the option to negotiate development and the marketing rights to compounds identified by Neurion. Financial terms were not disclosed.

"We are delighted that Lilly has chosen to work with Neurion in this important area of research," said Mark J. Suto, Ph.D., Executive Vice President and Chief Scientific Officer. "This collaboration provides further validation of Neurion's capabilities in ion channel drug discovery, and underscores the potential of our NP2-based approach for developing novel and selective ion channel modulators."

Neurion's disease targets have included Alzheimer's disease and associated dementias, Parkinson's disease, Tourette's syndrome, schizophrenia, depression, attention deficit disorder, smoking cessation and chronic pain.

Neurion's technological advantage is in its ability to identify precisely the structural determinants of target selectivity for ion channels and receptors. This knowledge allows Neurion the opportunity to develop novel compounds with improved safety profiles, providing tremendous value to Neurion and its pharmaceutical partners. NP2 technology enables design and development of compounds with a higher chance of success, thereby reducing the costly risk of failure in development.

Neurion is now engaged in three drug discovery programs, including the Lilly collaboration -- a previously announced and ongoing corporate collaboration focused on reducing the risk of drug-induced cardiac toxicity, and an internal program to discover and develop new drugs for the treatment of anxiety.

Neurion Pharmaceuticals, Inc., a development-stage pharmaceutical company, employs its NP2 technology to discover new drugs for diseases of the central nervous system and other disorders associated with ion channels and other membrane proteins. The company was formed in January, 2002, with funding from Convergent Ventures (www.convergentventures.com), a Los Angeles-based life science venture capital firm.
 

Contact:

     Neurion Pharmaceuticals, Inc.
     William L. Robbins, 626/685-5977