G2 Therapies And Novo Nordisk A/S Announce US$102M Global Research, Development And License Agreement To Develop And Commercialize Anti-Inflammatory Therapies

Sydney, 8 February 2006 – Australian biotechnology company, G2 Therapies Limited, and global healthcare leader, Novo Nordisk, today announced one of Australia’s most significant biotechnology licensing agreements.

The agreement between G2 Inflammation Pty Ltd (G2I), a subsidiary of G2 Therapies Limited, and Novo Nordisk A/S, will see both companies collaborate to develop, manufacture and commercialise new anti-inflammatory therapies based on G2’s C5a Receptor antibodies.

The antibodies licensed under this agreement were first developed by Professor Mackay at the Garvan Institute of Medical Research. Anti-C5a Receptor therapies have potential application in several important indications, including rheumatoid arthritis and other autoimmune diseases.

The terms of the agreement include a US$6 million upfront payment and other success-based payments to a potential total of US$102 million, plus royalties on commercialised therapeutics. Additionally, G2I will be reimbursed by Novo Nordisk for expenses incurred under this collaboration.

“We are delighted to announce this collaboration with Novo Nordisk. This is one of the most significant licensing agreements achieved by any Australian biotech, and confirms our strategy of applying our unique antibody development capabilities to a pipeline of validated gene targets from the Garvan Institute,” said Stephen Conlon, CEO, G2 Therapies. “We look forward to working with Novo Nordisk to develop anti-inflammatory therapies that will potentially benefit millions of people worldwide and to expanding our operations to bring other inflammation and cancer therapeutics to the market.”

The agreement with G2 provides an important addition to Novo Nordisk’s growing portfolio of biopharmaceuticals projects within cancer and inflammation. Commenting on the agreement, Terje Kalland, MD, PhD, head of Novo Nordisk’s Biopharmaceuticals research Unit said:

“Our strategy is to leverage our core capabilities within proteins and inflammation through partnerships with leading biotech companies and research institutions around the world. G2’s project falls right into our own focus areas, and we are excited about the potential of this joint project.”

About G2 Therapies G2 Therapies is a biotechnology company founded in 2002 based on research undertaken by two scientists from the Garvan Institute of Medical Research, Prof Charles Mackay and Prof Rob Sutherland, with the aim of developing and commercialising antibody based therapeutics in inflammation and cancer. G2 is based at the Garvan Institute in Sydney, Australia, and conducts its research through two operating subsidiaries, G2 Inflammation P/L and G2 Cancer P/L. G2 Therapies is a private company chaired by Dr John Schubert, and its major investors include AMWIN, Baron Nominees, and the Garvan Institute of Medical Research. For further information, visit www.g2therapies.com.au.

About G2’s anti-C5a Receptor antibodies The body needs a certain amount of inflammation to protect itself against disease. The hallmarks of inflammation reflect the major events: swelling of localised blood capillaries, and the movement of fluid and immune cells into damaged tissue in an effort to contain infection.

When immune cells become overactive, as is the case with rheumatoid arthritis and other autoimmune diseases, too many of them move into damaged tissue and exacerbate the condition. G2’s antibodies bind to the C5a receptor expressed on these cells, and prevent C5a from binding, thereby blocking the action of one of the most important molecules for guiding inflammatory cells into tissue.

“We anticipate that our antibody will be a significant improvement over current therapies because it acts at a different and earlier point in the inflammatory process compared with current anti-inflammatory therapies,” says Professor Mackay.

About the Garvan Institute The Garvan Institute of Medical Research was founded in 1963 by the Sisters of Charity. Initially a small research department of St Vincent's Hospital in Sydney, it is now one of Australia's largest medical research institutions with over three hundred scientists, students and support staff. The Garvan Institute’s main research programs are: Arthritis & Immunology, Osteoporosis, Cancer, Diabetes & Obesity, and Neuroscience. For further information, visit www.garvan.org.au.

About Novo Nordisk Novo Nordisk is a healthcare company and a world leader in diabetes care and biopharmaceuticals. Novo Nordisk manufactures and markets pharmaceutical products and services that make a significant difference to patients, the medical profession and society. With headquarters in Denmark, Novo Nordisk has more than 22,000 full-time employees in 79 countries, and markets its products in 179 countries. Novo Nordisk's B shares are listed on the stock exchanges in Copenhagen and London. Its ADRs are listed on the New York Stock Exchange under the symbol 'NVO'. For more information, visit novonordisk.com.

For further information or to arrange an interview, please contact: G2 Therapies Limited Jennifer Parker, Sage Communications Ph: 0403 296 864 Email : jentparker@optusnet.com.au

Novo Nordisk A/S Elin K Hansen Ph: +45 44 42 34 50

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