Stockholm, Sweden, February 18, 2006.] Swedish drug development company OxyPharma has been granted a patent for its drugs Rob 803, Rob 895 plus a number of analogue substances for the treatment of autoimmune diseases, mainly Rheumatoid Arthritis and Multiple Sclerosis.

On December 17, 2005, OxyPharma was granted Swedish patent number 0401555-8 by the Swedish Patent Office. The patent covers new inventive compounds useful as drugs, in particular for preventing and/or treating autoimmune diseases. The patent also covers the compounds’ preparation methods and pharmaceutical compositions containing them.

This patent provides OxyPharma with an exclusive right to commercially exploit its developed substances’ effects on autoimmune diseases – mainly RA and MS - in Sweden up to June 17, 2024. OxyPharma now proceeds as planned with the corresponding international application.

OxyPharma recently initiated phase I clinical studies on its RA candidate drug Rob 803, with the objective to complete the studies by April 2006. The Phase I clinical trial is designed to test the pharmacokinetics and tolerability of Rob 803 in escalating single and multiple doses. 80 healthy subjects participate in the study, which is being conducted at Quintiles Guy’s Drug Research Unit in London, UK. Phase IIa clinical studies of the compound are scheduled to start in September 2006.

Rob 895 has been selected as a candidate drug for the treatment of multiple sclerosis (MS). Clinical studies have not yet started.

“The granting of the patent was expected but is nonetheless very rewarding. We can now enjoy a strong protection of our immaterial rights for a long period to come”, said Ulf Björklund, CEO, OxyPharma.

At present, there are no effective, safe and easily administrated drugs for the treatment of RA, a disease that affects millions of people worldwide. However, preclinical studies indicate that OxyPharma’s compound Rob 803 can be effective, easy to administrate (orally) and can be produced at low cost compared with current products. The value of the RA market is estimated at more than USD 3bn annually, and is growing rapidly.

For additional information please contact:
Ulf Björklund
CEO, OxyPharma AB
Phone: +46 8 726 17 02 or +46 70 667 04 40
Email: ulf.bjorklund@oxypharma.com
or
Peter Karaszi
Press Officer, OxyPharma AB
Phone: +27 21 439 8806 or +27 83 243 5797
Email: peter.karaszi@oxypharma.com