RNS No 5924x
CHIROSCIENCE GROUP PLC
29th September 1998

 
                          CHIROSCIENCE GROUP PLC
                      RESEARCH AND DEVELOPMENT UPDATE
 
Chiroscience Group plc, the emerging pharmaceutical company, is holding  a
Research  and  Development Update, providing information to  analysts  and
investors about its gene to drug strategy - highlighting the status of its
early stage and later stage drug development programmes and reviewing  the
progress made with its genetic analysis technologies.
 
Highlights:
 
-     Inflammation, immunology and bone disease confirmed as the focus for
      future discovery programmes
 
-     Gene-based  discovery  strategy  is  creating  value  through   the
      identification of radically new targets for unmet medical need:
 
- Novel immune gene discovered, which is critically responsible for immune
 response,  and  provides  a  target for  new  drugs  treating  autoimmune
 diseases (see separate announcement)
 
-  Unique  bone  strengthening gene located in human population,  offering
 potential  for  new  drugs  to  reverse  the  effects  of  bone  loss  in
 osteoporosis
 
-     New  systems  for identifying genetic mutations offer  new  business
 opportunities  in  Rapigene subsidiary, as evidenced  in  agreement  with
 Gemini Research (see separate announcement).  Genomics collaboration with
 Bristol-Myers  Squibb  is identifying MMP profile required  for  specific
 tumour types
 
-     Drug  discovery programmes with corporate partners progressing well,
 in and near clinical trials:
 
-  D2163  MMP inhibitor for cancer demonstrates excellent blood levels  in
 single  dose  Phase I studies; multi-dose studies underway.   Phase  I/II
 patient  studies conducted by Bristol-Myers Squibb to commence  early  in
 1999
 
- D1927 MMP inhibitor to enter Phase I clinical studies in October 1998
 
- PDE IV collaboration with Schering-Plough has discovered inhibitors with
 superior  competitive  profiles for treatment of asthma,  bronchitis  and
 emphysema
 
-     Needleless  and  pain-free  injection of  local  anaesthetics  being
 developed  in  conjunction  with  Powderject,  in  children  and  adults,
 following  excellent  results from 5 Phase  I/II  studies  (see  separate
 announcement).  The first clinical trials in children started in September
 1998
 
Chiroscience   also   provided  an  update  on  its  additional   clinical
programmes.  d-threo-methlyphenidate continues to be progressed by Medeva,
and  proceeds on track for its first regulatory submission at the  end  of
1999.   The isomers of verapamil have demonstrated advantages in  clinical
studies  for  the  treatment of arrhythmia and angina.   However,  Knoll's
development  focus no longer includes these cardivascular indications  and
this collaboration will now be terminated, with Chiroscience retaining all
development   rights.   Discussions  are  ongoing   with   new   partners,
particularly for products targeted at treating angina.
 
Dr  Robert  Jackson,  Executive Director of Research and  Development  for
Chiroscience, said:
 
"The  information we are presenting today demonstrates that we are a gene-
to-drug  company.  We have demonstrated our strength in  four  key  areas:
gene discovery; drug discovery; drug development; and the strengths we can
use  in  future in-licensing opportunities.  These programmes will all  be
major contributors to Chiroscience's profit stream over the coming years.
 
In  addition,  we  have  created very valuable  new  systems  for  genetic
analysis  and  expect  exciting news over the coming  months  in  all  our
programmes."
 
 
For further information contact:

Dr John Padfield, Chief Executive    Giles    Sanderson/Victoria
Dr    Robert   Jackson,   Executive  Springett
Director R&D                         Financial Dynamics
Rebecca Iveson, Investor and  Media  Tel: +44 (0)171 831 3113
Relations
Tel: +44 (0)1223 420430              
Http://www.chiroscience.com
 
 
Notes For Editors:
 
Chiroscience Group plc

Chiroscience  Group plc is an emerging pharmaceutical company  which  uses
its  diverse technology platform to discover, develop and bring to  market
novel  medicines  for  improved  healthcare.   It  has  three  businesses:
Chiroscience R&D, Rapigene and ChiroTech.
 
Chiroscience R&D's focus is on innovative small molecule drugs and related
diagnostics  in  the  therapeutic  areas of  inflammatory  disease,  pain,
osteoporosis,  cancer  and autoimmune diseases.  Its  technology  platform
allows  the  conception  and  development of  receptor-based  and  enzyme-
inhibiting small molecule drugs with high selectivity of action.  Rapigene
is involved in the creation of genomic technologies and services, which it
provides  to  Chiroscience  R&D  and  partner  companies'  drug  discovery
programmes.    ChiroTech   provides   chiral   technology   services    to
pharmaceutical and related industries, including Chiroscience R&D.
 
Chiroscience Group plc is listed on the London Stock Exchange and is based
in Cambridge and Stevenage, UK, and Seattle, Washington, USA
Research and Development Update
 
At Research and Development Updates for financial audiences held in London
on  September 29th 1998, and to be held in New York on October  9th  1998,
Chiroscience  Group  plc  discussed the progress  in  the  principal  drug
discovery programmes within Chiroscience R&D, its drug discovery business,
and  the  genetic  analysis  technologies which  form  the  basis  of  its
subsidiary Rapigene Inc.
 
Introduction

Chiroscience  Group  plc  has  now established  a  fully  integrated  drug
discovery   business.     Of  its  earlier,  single-isomer   developments,
Chirocaine  is in the last stages of product registration, and the  filing
for  registration of d-threo-methylphenidate by development partner Medeva
plc  is  scheduled  for the end of 1999.  The studies on  the  isomers  of
verapamil  have demonstrated clinical advantages in angina and arrhythmia;
however, Knoll have decided not to proceed with commercialisation and  new
partnerships  are  under  discussion, as  Chiroscience  has  retained  the
rights.
 
This  Research and Development update gives further detail on the  Group's
genetic  analysis technologies and applications, examples  of  significant
progress  in  two  gene-based  approaches to  disease  treatment  and  its
development of novel selective drugs for disease treatment.
 
The   drug   discovery   activities  are  focused  on   inflammatory   and
immunological  diseases (such as asthma, psoriasis and inflammatory  bowel
disease) and bone and joint diseases (osteoporosis and arthritis), with  a
secondary  focus  on cancer. All these diseases affect  large  numbers  of
patients and there are no effective disease-modifying treatments available
at  present.  Furthermore, demographic trends worldwide are such that  all
these  diseases  will  continue to represent a very considerable  economic
burden  upon  healthcare providers as the population ages and as  patients
demand improved quality of life.
 
The  Group  will also consider other areas where its resources and  skills
can  be effectively applied.  An example of this is the development of the
local  anaesthetic  lignocaine,  in  the  Powderject  needleless  delivery
system, described later in this document.
 
The  Group  is using a range of new technologies and techniques, including
genetic  analysis tools, to make the drug research and development process
more effective, reducing the cost and time to market of new drugs, as well
as   improving  the  outcome.   Chiroscience  is  determined   to   remain
competitive and at the forefront of drug discovery.
 
GENETIC ANALYSIS

Genetic analysis is now central to any company involved in drug discovery.
Rapigene's  genetic analysis technologies represent leading approaches  to
the  study  of  genetically-based disease through the use  of  proprietary
chromatographic  and mass spectroscopic systems created  in  the  Company.
With  a  focus  on  the  discovery  and  detection  of  Single  Nucleotide
Polymorphisms (SNPs) - the single mutations often associated with  disease
- these technologies could be used by a variety of customers to define and
study  the  genotypes of affected patients and hence  to  identify  better
those  patients  who should be entered in clinical trials and  treated  in
clinical  practice. Studies that use SNPs to understand how an  individual
responds  to  a  drug  is  part  of  a  new  area  of  research  known  as
pharmacogenomics.
 
There  is  an  increasing  demand for rapid,  accurate  identification  of
genetic   polymorphisms  within  the  pharmaceutical,   agricultural   and
forensics   industries.   The  technical  challenges  of   SNP   discovery
presented  by  this demand are formidable and Rapigene is  establishing  a
leading  position in this area. Rapigene's SNP detection technologies  are
based  upon  DNA  hybridization reagents and cleavable  mass  spectrometry
tags,  which  are both proprietary and for which patent applications  have
been filed.
 
Using  these  technologies, Rapigene can incorporate into a  robust  assay
virtually  any  SNP  that has been associated with almost  any  condition.
Rapigene  plans to market its SNP detection capabilities to pharmaceutical
companies  which  would  use  SNP genotyping  in  their  drug  development
programmes.
 
Once  discovered, an SNP can be associated with different diseases through
conducting  population studies.  This will allow patients  to  be  treated
with more specific drugs, as tests will show patients' likely response  to
different  drug  therapies.  Further monitoring will  reveal  the  patient
response  to  the  selected therapy, raising overall life  expectancy  and
quality of life, while tracking for the emergence of any new disease.
 
NOVEL IMMUNE SYSTEM GENE

Chiroscience R&D's discovery programmes make integrated use of both  human
and  mouse  genetics.  The use of mouse genetics permits the  analysis  of
disease states that would be difficult or impossible to study using  human
populations.   One such programme examined a strain of mice which  have  a
progressive,  lethal  autoimmune disease.  The gene responsible  for  this
disease in mice was cloned in 1998 within the Company and subsequent  work
has allowed us to identify the corresponding human gene.
 
This  gene  (on  which patents have been filed) is novel and  its  protein
product  is  responsible  solely  for the  control  of  immune  responses.
Alterations  in  the  gene's  function lead  to  severe  autoimmunity  and
premature death and as such, the activity of the gene product is  required
for  the  normal function of the immune system.  Diseases where this  gene
may have an important role include cancer and autoimmune diseases, such as
asthma, psoriasis and inflammatory bowel disease.  This discovery uncovers
a  previously unknown biological pathway for understanding and  modulating
the  immune response.  Chiroscience is studying the function of this gene,
which  will lead to new drug discovery targets and to unique opportunities
for the augmentation or inhibition of immune responses.
 
OSTEOPOROSIS: GENE-BASED APPROACH TO DISEASE TREATMENT

Osteoporosis  is a major disease in the over 60s.  It is  most  common  in
women,  but  occurs  increasingly in men.  The progressive  loss  of  bone
density leads to a high risk of fractures of the hip, wrist and spine.  In
addition,  individuals  lose the ability to care  for  themselves,  become
increasingly  immobile and many die as a result.  The annual incidence  of
osteoporotic fractures is estimated to be 1 million within the  US  alone.
This is twice that of heart attack and more than four times that of stroke
or  breast cancer.  Current economic costs of treating osteoporosis is  in
the region of $10 billion and is rising significantly.
 
No   therapy  exists  which  will  significantly  increase  bone  density.
Chiroscience  R&D  is  working  with a unique  population  which  includes
individuals with extremely strong bone.  Bone density increases throughout
their  life,  i.e.  they  have a genetic disorder whose  effects  are  the
opposite of osteoporosis.
 
During  the  past year, the company has mapped the gene which causes  this
disorder  to  the chromosome on which it is located, built a map  of  this
area,  and identified all the genes within this region.  The current  work
will  relate these findings to the clinical history of about 100  patients
and  their  family members, and thereby single out the mutant gene.   When
the identity of the gene is discovered, its function will be validated and
a  small molecule drug developed to mimic the action of the mutation -  to
lay down more dense bone.  This will provide a totally novel treatment for
osteoporosis, resulting from using a human genetic mutation as a surrogate
for drug action.
 
MATRIX METALLOPROTEINASE INHIBITORS (MMPIs)

MMPs  are  a family of enzymes which break down tissue components  in  the
body  for the purposes of growth and repair.  Research has shown that  the
uncontrolled over-production of MMPs is involved in the pathology of  many
diseases,  including cancer and inflammatory conditions such as  arthritis
and  inflammatory bowel disease (IBD).  Any MMP inhibitor used to treat  a
disease must have a carefully-defined selectivity in order to produce  the
required  efficacy  while  not inhibiting other metalloproteinase  enzymes
which may cause side effects.
 
Cancer

Under  a  development  and marketing agreement signed  in  February  1998,
Bristol-  Myers Squibb (BMS) and Chiroscience are progressing the clinical
development of Chiroscience's drug, D2163, in repeat dose Phase I studies,
with Phase I/II trials in cancer patients planned for the first quarter of
1999.
 
D2163  is  an  inhibitor of a broad range of MMPs which are  known  to  be
associated  with  the growth and spread of tumours, but does  not  inhibit
metalloproteinase mediated shedding events, which may be  associated  with
the  side  effects  which  have become associated  with  first  generation
inhibitors.   Indeed, this new generation compound has not  exhibited  any
deleterious effects on tendons or joints in animal studies.  The  compound
has, however, demonstrated anti-angiogenic activity - the  suppression  of
growth  in  blood supply to tumours - which is one of the  most  important
activities attributed to MMPIs in cancer.
 
D2163  has  been dosed in volunteers from 25mg to 900mg.  Data  from  this
Phase I study indicates that D2163 achieves good plasma levels and is well
tolerated.   The  long  half  life of D2163 indicates  that  the  compound
continues to demonstrate good potential as a therapeutic agent.
 
The  clinical programme is backed by an active research collaboration with
BMS.   Different MMPs may be implicated in different types of cancer  (for
example  there  is a variation in the MMPs expressed in breast,  prostate,
and lung cancer), and Rapigene's technologies are being used to define the
optimal  selectivity required for specific tumours, and  to  discover  new
members  of the MMP gene family.  Chiroscience's scientists are thus  able
to  design the next generation compounds targeted towards specific  tumour
types  and the other disease states (for instance, inflammation) in  which
specific MMPs are found to play an important role.
 
Chiroscience will enter D1927, the additional oncology candidate  licensed
to BMS,  into Phase I clinical trials in October 1998.
 
Inflammation

Chiroscience  believes  that MMPIs will be applicable  to  other  clinical
endpoints,  such as rheumatoid arthritis and inflammatory  bowel  disease.
For  example,  D1927 and compounds from a newer series of inhibitors  have
demonstrated   activity   in   models   of   inflammation.    Several   of
Chiroscience's  more  recent  compounds  have  a  significantly   improved
pharmacokinetic  profile over Ro32-3555, Roche's MMPI  compound  in  Phase
II/III  trials,  and  these compounds demonstrate good  oral  activity  in
experimental  models of inflammation.  Work is underway  in  collaboration
several  international groups aimed at understanding  the  application  of
MMPIs in inflammatory bowel disease and osteoporosis.
 
PHOSPHODIESTERASE IV (PDE IV)

Chiroscience  continues  its  collaboration with  Schering-Plough  on  the
discovery  and  development of new orally-active  anti-inflammatory  drugs
which   selectively  inhibit  the  enzyme,  PDE  IV.   The  treatment   of
respiratory  disease, particularly asthma, is the primary  focus  of  this
highly  productive  collaboration.  Lead compounds  have  been  discovered
which  have  a  superior profile over competitors.   In  particular,  they
demonstrate  enhanced  efficacy and reduced side effects,  leading  to  an
improved therapeutic index.
 
Chiroscience's   approach  to  discovering  active,  non-emetic   PDE   IV
inhibitors  was  validated  in  Phase 1 clinical  trials  with  its  first
compound,  D4418, which was specifically studied to prove  this  important
principle.  However, compounds with an enhanced efficacy profile,  ideally
targeting both the early- and late-phase responses observed in asthma, are
required  in  order  to compete successfully in this changing  marketplace
following  the  introduction  of the leukotriene  antagonists.   New  lead
compounds from the collaboration have demonstrated improved potency and an
excellent absorption profile in preclinical models compared to both  D4418
and competitor compounds, indicating that a once a day treatment should be
possible.
 
A  new  area  of  significant interest for PDE IV  inhibitors  is  Chronic
Obstructive Pulmonary Disease (COPD) which affects 15 million patients  in
the  US alone, and more than 40 million worldwide.  This constitutes three
main  diseases:  chronic bronchitis; emphysema; and chronic bronchiolitis.
Current  therapies  for  COPD  include  inhaled  beta  agonists,  such  as
salbutamol,  and  systemic theophylline, which provide symptomatic  relief
only and do not address the underlying disease.  Inhaled steroids are also
used  in more advanced disease, but these have a range of undesirable side
effects.   PDE IV inhibitors should be able to modify the disease  because
they have the potential to address the three main features of the disease:
inflammation; bronchoconstriction; and airway damage.
 
POWDERJECT LIGNOCAINE

Chiroscience  and PowderJect are collaborating on a joint  development  in
which  Chiroscience is responsible for the clinical development  of  local
anaesthetics in the PowderJect needleless injector system.  PowderJect are
developing and manufacturing the device and the drug product.
 
The  initial  focus  has  been  on Dermal PowderJect  Lignocaine  and  the
development of a revolutionary new method of providing rapid onset,  pain-
free,  needleless  topical anaesthesia.  Market research has  demonstrated
that  a major unmet medical need, and a very important use of this product
for  the  future,  is  in  children. Dermal PowderJect  Lignocaine  should
eliminate the pain, fear and anxiety associated with needle injections and
allow procedures to be conducted within 5 minutes of application.  Current
alternative products take up to 40 minutes to work.
 
Four Phase I and one Phase II clinical trials have been completed, all  of
which  achieved  their objectives.  In these studies, 110  adult  subjects
received Dermal PowderJect Lignocaine.  The trials have demonstrated  that
it is effective at a range of clinically relevant anatomical sites and has
an  acceptable  safety  profile.   A Phase  I  study  exploring  surrogate
endpoints  using Laser Doppler technology, which is a method of  measuring
changes  in  blood  flow, will be started shortly.   If  this  exploratory
research correlates changes in blood flow with anaesthesia, it could offer
the opportunity to measure the onset, area and duration of anaesthesia  in
a non-invasive manner.
 
Two  Phase  II Paediatric studies are being conducted the UK, starting  in
September  and  October  of this year.  These studies  will  measure  pre-
procedural  (the taking of blood samples or cannulation) dermal  analgesia
in  children aged 4 to 12, to ascertain the optimal device characteristics
of  Dermal PowderJect Lignocaine.  Results from these studies are  due  in
the  first half of next year.  Adult trials will be conducted in  parallel
with  the paediatric studies.  The clinical trials are expected to recruit
over  500  paediatric  patients, and are focused on  making  a  regulatory
submission in the year 2000.  The use of levobupivacaine in this  delivery
system is also being explored.
 
PowderJect  Dermal Lignocaine is a trademark of Powderject Pharmaceuticals
plc
 
 
END

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