Milestone Reached in Oncology Collaboration

Monday 19 December 2005

Vernalis plc (LSE:VER, Nasdaq: VNLS) today announced that a compound has been selected as a preclinical development candidate by Novartis under the joint research and development collaboration on the oncology target Hsp90.  The compound is planned to enter clinical testing in H2 2006.  Under the terms of the collaboration a milestone payment of $1.5 million is due to Vernalis from Novartis.

Simon Sturge, CEO of Vernalis said, “We are delighted that our programme with Novartis has progressed to this next stage, demonstrating the ability of our structure based drug design platform to deliver candidate molecules. Hsp90 inhibitors are an increasingly attractive target for a number of different cancer indications and Novartis is an acknowledged world leader in the oncology field. This type of collaboration enables us to advance promising compounds from our oncology portfolio while maintaining development of our CNS pipeline.”

The Vernalis Hsp90 programme is the result of a collaboration established in March 2002 with Cancer Research Technology Ltd (CRT) [formerly Cancer Research Ventures Ltd] and The Institute of Cancer Research, building on studies funded by The Institute of Cancer Research, Cancer Research UK and Wellcome Trust. Under the agreement Vernalis will pay CRT and The Institute of Cancer Research a proportion of its revenues from the agreement with Novartis.

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For more information, please contact:

Vernalis plc                                 

+44 (0) 118 977 3133                 

Simon Sturge, Chief Executive Officer                

Tony Weir, Chief Financial Officer

Julia Wilson, Head of Corporate Communications         

Brunswick Group

+44 (0) 20 7404 5959                 

Jon Coles

Wendel Verbeek

Notes to editors

1. About Hsp90.  In cancer, proteins called "oncogenic proteins" are responsible for uncontrolled cell division - a characteristic of tumour growth. Hsp90 is a molecular chaperone, essential for the stability and function of several oncogenic proteins. Hsp90 is known to be over expressed in human tumours and the inhibition of Hsp90 results in interference in multiple signalling pathways that mediate cancer growth.  Thus, inhibitors of Hsp90 have the potential to inhibit all six hallmark traits of cancer: limitless proliferation, growth signal self-sufficiency, insensitivity to anti-growth signals, apoptosis avoidance, angiogenesis and metastasis.
2. About Vernalis.  Vernalis is a specialty pharmaceutical company focused on products marketed to specialist neurologists.  The company has two marketed products, frovatriptan and Apokyn®, and a development pipeline focused on neurology and central nervous system disorders.  The company has five products in clinical development and collaborations with leading, global pharmaceutical companies including Novartis, Biogen Idec and Serono.  Vernalis is establishing a US commercial operation to promote Apokyn® and co-promote frovatriptan alongside its North American licensing partner, Endo Pharmaceuticals, propelling the company towards its goal of becoming a sustainable, self-funding, R&D-driven, specialty pharmaceutical company.  For further information about Vernalis, please visit www.vernalis.com.
3. About The Institute of Cancer Research.  The Institute of Cancer Research is Europe’s leading cancer research centre with expert scientists working on cutting edge research. It was founded in 1909 to carry out research into the causes of cancer and to develop new strategies for its prevention, diagnosis, treatment and care. Website at: .  The Institute works in a unique partnership with The Royal Marsden NHS Foundation Trust, forming the largest comprehensive cancer centre in Europe. This relationship enables close daily contact with those on the frontline in the fight against cancer - the clinicians, the carers and most importantly, the patients.

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