Compound From Pharmacopeia Drug Discovery Collaboration Shows Clinical Activity In Phase I Trial

PRINCETON, N.J., March 13 /PRNewswire-FirstCall/ -- Pharmacopeia , an innovator in the discovery and development of novel small molecule therapeutics, today announced that one of the compounds resulting from its collaboration with Schering-Plough has demonstrated activity in Phase I studies. The compound, a CXCR2 antagonist, is being evaluated as a potential treatment for chronic obstructive pulmonary disease (COPD), a progressive disease of the airways. In a Phase I randomized, double-blind trial of 18 healthy volunteers, results showed that in the treated subjects, ozone-induced sputum neutrophilia was inhibited. Neutrophils are believed to play a key role in COPD.

These findings were discussed by Schering-Plough at the company's November 1, 2005 R&D and Product Review Day. The compound also will be the subject of a public presentation of preclinical data at the upcoming national meeting of the American Chemical Society which runs from March 26-30, 2006.

"The findings from this trial are very encouraging as they demonstrate the potential for this compound to effectively inhibit a key component of chronic obstructive pulmonary disease," said Les Browne, Ph.D., Pharmacopeia's President and Chief Executive Officer. "We are looking forward to seeing how the compound performs in further clinical studies."

This CXCR2 antagonist is one of five compounds to have emerged from the ongoing collaboration between Pharmacopeia and Schering-Plough. According to terms of the collaboration, Schering-Plough is responsible for further development of the compounds. Pharmacopeia is eligible to receive milestone payments related to successful advancement of compounds and future royalties on sales of resulting products.

Pharmacopeia currently has ten compounds in development, each partnered with a major pharmaceutical or biotechnology company. Six of these compounds are in preclinical development. Four compounds (representing three partnered, therapeutic programs) are currently in Phase I clinical trials for rheumatoid arthritis, an allergy/asthma indication and chronic obstructive pulmonary disease (COPD). Pharmacopeia will receive milestone payments for those programs that successfully advance through clinical development and royalties on the sales of any compounds that are ultimately commercialized.

In addition to its partnered compounds, Pharmacopeia has a strong pipeline of wholly-owned programs. The Company's most advanced internal programs are: JAK3 inhibitors (an immunosuppressant with potential utility in multiple indications including transplant rejection, psoriasis, asthma and rheumatoid arthritis); adenosine A2A antagonists (anti-neurodegenerative compounds with potential application in the treatment of multiple diseases, including Huntingdon's, Parkinson's and Alzheimer's); and CCR-1 antagonists (with potential application in the treatment of inflammatory diseases such as rheumatoid arthritis and multiple sclerosis). Compounds active at each target have shown activity in relevant preclinical in vivo models.

ABOUT PHARMACOPEIA

Pharmacopeia creates and delivers novel therapeutics to address significant medical needs. Using proprietary technologies and processes, Pharmacopeia seeks to discover and develop novel drug candidates to advance internally as well as with strategic partners. The Company is advancing multiple internal programs - focused primarily on immunobiology and immunological diseases - to validation in clinical trials. Pharmacopeia's later stage portfolio currently comprises multiple partnered programs that have been advanced into human clinical trials with further programs in late- stage preclinical development. Beyond these, the Company has several internal programs in advanced preclinical optimization and multiple partnered programs in discovery that are expected to drive the Company's clinical portfolio in the future.

Contact: Michio Soga Executive Vice President and Chief Financial Officer Pharmacopeia (609) 452-3643 irreq@pcop.com

This press release, and oral statements made with respect to information contained in this press release, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those which express plan, anticipation, intent, contingency or future development and/or otherwise are not statements of historical fact. These statements are based upon management's current expectations and are subject to risks and uncertainties, known and unknown, which could cause actual results and developments to differ materially from those expressed or implied in such statements. These forward-looking statements include, but are not limited to, statements about the successful implementation of Pharmacopeia's strategic plans, the planned cessation of full-time employee funding from Pharmacopeia's existing collaborations with Schering-Plough, Pharmacopeia's intentions regarding the establishment and continuation of drug discovery collaborations with leading pharmaceutical and biotechnology organizations, in particular, the continuation and funding level of such continuation of Pharmacopeia's existing collaboration with N.V. Organon, Pharmacopeia's ability to build its pipeline of novel drug candidates, through its own internally-funded drug discovery programs, third party collaborations and in-licensing, Pharmacopeia's ability to raise additional capital, Pharmacopeia's anticipated operating results, financial condition, liquidity and capital resources, Pharmacopeia's expectations concerning the development priorities of its collaborators and their ability to successfully develop compounds, Pharmacopeia's expectations concerning the legal protections afforded by U.S. and international patent law, additional competition, changes in economic conditions, and other risks described in documents Pharmacopeia has filed with the Securities and Exchange Commission, including its Report on Form 10-Q filed on November 4, 2005, its Report on Form 10-K filed on March 23, 2005 and subsequent filings under the Securities and Exchange Act of 1934. All forward-looking statements in this press release and oral statements made with respect to information contained in this press release are qualified entirely by the cautionary statements included in this press release and such filings. These risks and uncertainties could cause actual results to differ materially from results expressed or implied by such forward-looking statements. These forward-looking statements speak only as of the date of this press release. Pharmacopeia disclaims any undertaking to publicly update or revise any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

CONTACT: Michio Soga, Executive Vice President and Chief FinancialOfficer, Pharmacopeia, +1-609-452-3643, irreq@pcop.com

Web site: http://www.pharmacopeia.com/