[Stockholm, Sweden, May 2, 2006] Swedish drug development company OxyPharma has secured additional funding of mSEK 55 (approx. mEUR 6; mUSD 7.3) to take the company’s promising compound Rob 803 for the treatment of Rheumatoid Arthritis (RA) through phase II.

Swedish investment company LLD Nybohov Invest, the major financier of OxyPharma, has guaranteed additional funding of mSEK 55 (approx. mEUR 6; mUSD 7.3). This secures OxyPharma’s finances for the next two years. The company will complete the ongoing phase I studies of Rob 803 – which are expected to be concluded in mid-May 2006 – and initiate a phase II study (proof of concept) of Rob 803 in late 2006.

LLD Nybohov Invest is OxyPharma’s largest shareholder with more than 90% of the share capital. LLD Nybohov Invest is owned by Swedish entrepreneur Mr. Leif Lundblad.

Phase I clinical studies on OxyPharma’s RA candidate drug Rob 803 started in October last year and will be concluded in May. The results are very encouraging and the company will now enter into phase II studies. Phase I clinical trials have tested the pharmacokinetics and tolerability of Rob 803 in escalating single and multiple doses in 68 healthy volunteers.

OxyPharma has also selected Rob 895 as a candidate drug for the treatment of multiple sclerosis (MS). Pre-clinical studies have not yet started.

At present, there are no effective, safe and easily administrated drugs for the treatment of RA, a disease that affects millions of people worldwide. 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