Phytopharm is a pharmaceutical business currently involved in the research and production of pharmaceutical and functional food items that are based on clinical information created from particular medicinal plant extracts such as Hoodia Gordonii.

Phytopharm plc Future development of P57

Phytopharm plc (“Phytopharm”) announces today that it has agreed with Pfizer Inc, (“Pfizer”) the future development programme for P57, Phytopharm’s novel appetite suppressant for the treatment of obesity and metabolic syndrome. The agreement follows the successful demonstration of proof of principle in man that was announced in December 2001.

The agreement is in two parts:

- Pfizer will now progress the P57 development programme concerning extracts of medicinal plants under the ongoing terms of the Licence and Royalty Agreement announced between Pfizer and Phytopharm in 1998. This programme is intended to result in the development of a botanical prescription pharmaceutical for the treatment of obesity and metabolic syndrome. Under the terms of this agreement, Phytopharm will receive up to $32 million in milestone payments as well as royalties on sales of P57 by Pfizer. Phytopharm will additionally receive $2.8 million funding as part of this agreement.

- Phytopharm will develop semi-synthetic versions of the active molecules discovered in the P57 programme and will be free to seek other partners to commercialise these products.

Commenting on these arrangements, Dr Richard Dixey, Chief Executive of Phytopharm, stated: “This is a very positive development for Phytopharm with substantial potential upside. With Pfizer progressing the botanical opportunity, Phytopharm will concentrate its efforts on the development of semi-synthetic molecules, offering the possibility of two different milestone and income streams emerging from the P57 platform. With over two years’ working capital the Company remains well funded to progress this expanded platform. ”