CELTIC PHARMA LICENSES TARGETED DRUG DELIVERY TECHNOLOGY AND DERMATOLOGICAL PRODUCT PORTFOLIO FROM IDEA AG

HAMILTON, BERMUDA; LONDON; NEW YORK and MUNICH, GERMANY: February 23, 2006 - Celtic Pharmaceutical Holdings LP (“Celtic Pharma”), the international private equity firm focused on the biotechnology and pharmaceutical industries, and Munich-based IDEA AG (“IDEA”) today announce that a Celtic Pharma subsidiary, TDT, has acquired an exclusive global licence to IDEA’s Transfersome® targeted delivery technology, including global rights to all IDEA’s products in clinical and pre-clinical development except for IDEA’s lead product, IDEA-033, an NSAID indicated against “deep pain”, which IDEA will continue to develop independently of TDT.

IDEA’s breakthrough Transfersome® technology enables the targeted and non-invasive delivery of drugs (including large molecules such as proteins) through the skin, typically in a gel or liquid spray formulation. Transfersomes® can be engineered either to permit drug release close to the surface of the skin, around the cutaneous microvasculature or up to and within the various tissues deep below the treated skin. Avoiding cutaneous drug clearance ensures a high local drug concentration at the site where it is required while avoiding side effects and other issues involved in systemic drug administration. IDEA’s current product pipeline is focused primarily on dermatological disease indications and pain, but TDT plans to work with the IDEA team to apply this exciting drug delivery technology to additional opportunities.

The licence purchased by TDT includes all forms of Transfersome®-based trans-dermal therapeutics but excludes NSAID delivery to deep tissue for the treatment of inflammation and pain. IDEA therefore retains all its rights to its lead product candidate, IDEA-033, which it is developing as a proprietary programme currently completing Phase III trials in Europe in the indication of osteoarthritis. IDEA-033 is licensed in the United States and Canada to a top-tier pharmaceuticals company, with whom IDEA is working closely.

The detailed financial terms of this transaction are not being disclosed but include an upfront cash payment to IDEA, additional contingent payments, and royalties on Transfersome®-based products developed by TDT. In addition, TDT has committed to invest a minimum of €15 million in developing the Transfersome®-based product portfolio already identified and intends to continue to fund further product development of Transfersome®-based products which can be brought to the market rapidly.

Today’s agreement represents the second phase of Celtic Pharma’s relationship with IDEA. In September 2005 Celtic Pharma acquired a 21 per cent holding in IDEA and John Mayo, one of Celtic Pharma’s Managing General Partners, was elected to its Supervisory Board.

John Mayo commented: “IDEA’s technology is a completely new method of drug delivery. It provides important new possibilities for targeting medication to the point of need without the necessity for injections and the associated visits to the doctor’s surgery. The initially-identified drug candidates alone have the potential to address major areas of unmet medical need where tissue-specific, noninvasive therapies will offer doctors and patients a new treatment paradigm. This licensing agreement represents another important step in Celtic’s aggregation of a strong, low-risk portfolio of late-stage products and proven technologies.”

Gregor Cevc, Chief Executive Officer of IDEA, said: “The deal with TDT will allow IDEA to concentrate on its most advanced product for innovative, safer treatment of osteoarthritis. Celtic’s agreement to fund and support the global development of additional products from IDEA will expedite their progress towards the market and maximise their commercial success.”

Joseph Blaker, Chairman of IDEA’s Supervisory Board observed: “I am pleased that through this single transaction IDEA has secured further funding on competitive terms for the completion of the development of IDEA-033 whilst ensuring the development of the balance of its portfolio.”

Stephen Evans-Freke, Celtic Pharma’s other Managing General Partner, added: “Celtic is delighted to be teaming up with one of Europe’s most interesting private life science companies and with an outstanding entrepreneurial management team. We recognise the pre-eminent importance of IDEA- 033 to the Company, but we are also committed to realising, in close collaboration with the IDEA team, the broader potential of this breakthrough drug delivery technology.”

Enquiries

For further information please contact:

Celtic Pharma
John Mayo, Managing General Partner Tel: +44 (0)20 7786 5550
Stephen Evans-Freke, Managing General Partner Tel: +1 212 616 4000

IDEA AG
Gregor Cevc, Chief Executive Officer Tel: +49 (0)89 32 46 33 10
Jens Peter Wartmann, VP Finance Tel: +49 (0)89 32 46 33 91

Financial Dynamics
David Yates Tel: +44 (0)20 7831 3113
Davina Langdale

 

About Celtic Pharmaceutical Holdings L.P.

Celtic Pharmaceutical Holdings L.P. (Celtic Pharma) is a global private equity investment firm focused on the biotechnology and pharmaceutical industries. Celtic Pharma was founded by Stephen Evans-Freke and John Mayo CBE and is based in Bermuda, with offices in New York and London. Celtic Pharma acquires and invests in late stage pharmaceutical programmes and manages these programmes through to regulatory approval. Celtic Pharma’s aim is to bridge the gap between the established pharmaceutical companies’ new product pipeline crisis and the biotech industry’s capital drought. For further information, please visit Celtic Pharma’s website at www.celticpharma.com.


About IDEA AG

IDEA is a privately held biopharmaceutical company with headquarters in Munich, Germany. IDEA develops and commercialises non-invasive, targeted therapeutics, applied through the skin and/or nose. The proprietary carriers are typically applied on skin and can be engineered to achieve high drug concentration at or near the site of application, diminish local or systemic adverse side effects, and often increase drug potency. In total, more than 55 patents from 8 patent families are currently protecting the core technology.

The Company’s leading products are in the area of dermatology and pain. IDEA-033, with excellent market potential in the peripheral pain market, is completing a Phase III trial in Europe and Phase IIb in the USA. Regulatory submission to EMEA is currently expected in Q4 2006. IDEA’s in-house capabilities range from formulation and small-scale (GMP) manufacturing work to clinical testing. For further information see IDEA’s website at www.idea-ag.de.


Background information:

Transfersome®
Transfersomes® are novel, ultra deformable vesicle carriers designed to deliver drugs non-invasively through the skin barrier. A Transfersome® can be applied to target muscles and joints below the application site without being cleared by the local cutaneous blood microcirculation. The resulting targeted drug delivery can increase product efficacy (having higher local drug concentration) and improve product safety (having lower systemic drug concentration) in comparison with corresponding existing oral and/or topical drug formulations. Transfersome®-based products will give the medical community an effective and safe method of targeted drug delivery.

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