News Release

GroPep news: Key psoriasis patent granted in Japan and new asthma patent filed for GroPep drug

Business Announcement

Research Australia

GroPep Limited announced today the granting in Japan of a key patent covering the active ingredient of its developmental psoriasis drug, PP0102. The world market for psoriasis drugs is more than US$1 billion annually.

The patent news is significant because Japan is a major pharmaceutical market and grant of the patent provides the Company with a patent monopoly until January 16, 2016, with the potential to extend this term by an additional 5 years.

GroPep's Vice President of Commercial Operations, Mr Gregory Moss-Smith, said that with the equivalent patents already granted in the USA and Europe, the Japanese grant completes coverage of the most valuable potential markets.

Exclusive, worldwide rights to the patent were obtained by GroPep in 2002 through a licence from the Northern Sydney and Central Coast Area Health Service (NSCCH). The patent (Japanese Patent No. 3,665,342 - "Novel Peptide") is based on research conducted at the Royal North Shore Hospital by Professor Nick Manolios.

As previously reported by the Company, the PP0102 active ingredient has potential application in other autoimmune diseases, including asthma.

On 27th May 2005, GroPep filed a new International Patent Application on the use of the active ingredient for the treatment of asthma. The application is based on research conducted by scientists at the University of Mainz, Germany and confirmed in studies conducted independently in the United Kingdom. Mr Moss-Smith said that the Company is currently evaluating the commercial merit of developing an asthma treatment.

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About Psoriasis:
Psoriasis is a chronic and debilitating inflammatory disease of the skin that affects more than 2% of the population. Worldwide annual sales of psoriasis drugs are currently US$1.0 billion and have been forecast to exceed US$5.0 billion by the time PP0102 is expected to go on sale. Current treatments are inadequate, with most treatment options causing unacceptable adverse effects that limit their long term use.

About Asthma:
Asthma affects more than 15 million in the US alone and 100 million worldwide. The market is increasing because of an ageing population and the contribution of pollution, smoking and airborne allergens. Current US sales of asthma drugs exceed USD $4.0 billion, growing at an annual rate of over 10%.

About GroPep
GroPep is a world leader in the development, manufacture and commercialisation of biologically active proteins for cell culture and biomedical research. The Company has an active biopharmaceutical development program that establishes proof of concept for products in humans and partners the later stages of product development and marketing with major pharmaceutical companies. GroPep is listed on the Australian Stock Exchange Limited (ASX code: GRO).

Further Information:
Mr Tony Mitchell
Chief Financial Officer/Investor Relations
Ph: +61 8 8354 7700
investorrelations@gropep.com.au


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