ISIS AND THE ATL/ISIS PARTNERSHIP

One of Antisense Therapeutics' fundamental strategies is acquiring access to state of the art antisense technology, in both know-how and intellectual property, to accelerate drug discovery and development.

As a leader in the field, the directors believe that Isis Pharmaceuticals, Inc. is the ideal technology partner for Antisense Therapeutics.

Isis Pharmaceuticals, Inc. is a leading drug discovery and development company, focused exclusively on the therapeutic target, RNA. Founded in 1989, Isis' mission is to develop products from its RNA-based technologies, such as antisense.

A key milestone for antisense therapeutics was the 1998 US FDA approval of Isis' first antisense drug Vitravene®. Vitravene® caters to the niche market of eye infections caused by HIV-induced cytomegalovirus.

California-based Isis is the leader in all aspects of antisense technology advancement, including mechanism research, the development of new chemistries, novel formulations and innovative drugs. The company currently has 22 products in development.

With approximatley 1,600 issued patents worldwide, Isis is the owner of one of the largest antisense and RNA patent estates in the pharmaceutical industry.  The Company holds key patents covering antisense mechanisms, biology, chemistry, inhibitors of gene expression and manufacturing of antisense drugs.

Isis has alliances with a number of global pharmaceutical companies, including Genzyme, Ortho-McNeil Janssen, Bristol-Myers Squibb & Eli Lily & Co.

For more information on Isis Pharmaceuticals, please visit their website at www.isispharm.com

(Vitravene is a registered trademark of Novartis AG)

ATL/ISIS COLLABORATION

Isis has granted Antisense Therapeutics rights to use Isis technology to commercialise antisense drugs to a number of drug targets. The collaboration agreement with Isis provides access to and assistance in expanding Antisense Therapeutics' drug pipeline, including:

• access to the rapid generation of antisense lead compounds to our potential therapeutic targets. Antisense Therapeutics have agreed a list of potentially exciting research targets with Isis and can, during the research and development phase, select those with the most commercial potential to exclusively market and sell.

• an exclusive license to ISIS 107248 (now under the codename ATL1102).  ATL1102 (injection) has successfully completed a Phase II efficacy and safety trial, significantly reducing the number of MRI lesions in patients with multiple sclerosis.

• access to Isis manufacturing for provision of bulk quantities of antisense compounds for clinical trials



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