AMED Amedeo Res

RNS No 7173u
CHIROSCIENCE GROUP PLC
25th March 1999

                                      
               CHIROSCIENCE AND ZENECA CONCLUDE AGREEMENT FOR
                        RETURN OF CHIROCAINE LICENCE
                                      
Chiroscience  Group plc announces that it has reached final  agreement  ("the
Agreement") with Zeneca Group PLC for the immediate return to Chiroscience of
rights  to  the  long-acting local anaesthetic, Chirocaine.  This  Agreement,
which  has been concluded as a direct consequence of Zeneca's proposed merger
with  Astra  AB,  has  been  approved by  the  United  States  Federal  Trade
Commission ("FTC") and follows the similar approval by the Commission of  the
European  Union  that  was  announced on 1 March 1999.   It  relates  to  all
territories,  excluding  Japan  where Chiroscience  has  licensed  Chirocaine
rights to Maruishi Pharmaceutical Company Limited.
 
Under the terms of the Agreement Zeneca will:

*     Make  a #10 million payment to Chiroscience to compensate for the near-
   term  impact on the commercialisation of Chirocaine as a result of  Zeneca
   ceasing to be the licensee.

*     Provide  transitional  funding  and resources  to  ensure  the  optimum
   continuation of the development of Chirocaine in all territories excluding
   Japan, pending agreement with a new marketing partner in such territories.
   This will be used for:

   *    pre- and post-marketing clinical studies;

   *    the filing of regulatory documentation worldwide (excluding Japan);

   *     marketing  support in order that the drug can be  presented  at  all
     upcoming major anaesthesia conferences; and

   *    continuing the product development already underway to create a number
     of line extensions.

  Zeneca  is  obliged  to  fully fund the completion  of  these  elements  of
  Chirocaine's  commercialisation.  Chiroscience  estimates  that  this  will
  cost an additional #10 million.

*     Transfer to Chiroscience all commercial information created by  Zeneca,
  including market research and promotional materials.

*     Extend  the  "lock-up"  covering the potential disposal  of  its  3.12%
  shareholding in Chiroscience.  Under the FTC Consent Decree, Zeneca will be
  obliged to dispose of its shareholding in Chiroscience within four months of
  the  end  of  this "lock-up" period.  Zeneca acquired its holding  of  3.53
  million  ordinary  shares  in  Chiroscience when  the  original  Chirocaine
  licensing agreement between the two companies was signed in March 1998.
 
The  Agreement also provides for the appointment by the FTC of an experienced
industry executive as a Trustee who will oversee compliance with the  Consent
Decree that will be published by the FTC.
 
Dr John Padfield, Chief Executive of Chiroscience commented:
 
"This  Agreement  with  Zeneca  has given Chiroscience  the  full  rights  to
commercialise  Chirocaine  as  well  as a significant  financial  settlement.
Zeneca retain no rights.  In addition Zeneca has provided us with the funding
and resources needed to maintain and improve the product profile and to build
the  platform  for a successful launch of Chirocaine prior to concluding  new
marketing arrangements.
 
Discussions with potential new partners are underway and we remain  confident
that a new license agreement will be signed that will allow Chirocaine to  be
launched  in  the  second  half of 1999, once final  FDA  approval  has  been
obtained.   Meanwhile,  following the receipt of  an  Approvable  Letter  for
Chirocaine  from the FDA, final negotiations are continuing with the  FDA  on
the  product  labeling.   We are preparing also to enter  mutual  recognition
procedures  to expedite further European licenses following approval  by  the
Medical Products Agency in Sweden in December 1998."
 
This document is intended to provide information on Chiroscience to
interested members of the public and not to provide product information to
health professionals.
 
Conference call:

There  will be a conference call at 3.00pm today for analysts, that  will  be
hosted  by Dr John Padfield.  Analysts interested in attending should contact
Financial Dynamics.
 
For further information contact:

Dr John Padfield, Chief Executive        Giles Sanderson
Christine Soden, Finance Director        Victoria Springett
David Dible, Head of Investor &          Financial Dynamics
Corporate Communications                 Tel: +44 (0)171 831 3113
Chiroscience Group plc
Tel: +44 (0)1223 420430
http://www.chiroscience.com
 
Chiroscience Group plc
Chiroscience  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  and  provision  of genomic technologies  and  services  to  partner
companies and to Chiroscience's drug discovery programmes.  Its DNA  analysis
systems comprise of DNA hybridization, DNA arrays and mass spectrometry tags.
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.
 

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