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| |  Compound May Utilize Newly Discovered Signaling Pathway SAN DIEGO, Jan. 17, 1997 -- Houghten Pharmaceuticals, Inc. (HPI) (Nasdaq: HPIP) today announced that research findings published in the January 9, 1997 issue of Nature and the January 10, 1997 issue of Cell could help explain the mechanism of action for HP 228, HPI's lead compound under development for the treatment of Type II diabetes and obesity. In the Cell article, scientists from Millennium Pharmaceuticals Inc., Hoffmann-La Roche Inc., and Oregon Health Sciences University reported study results which indicated that the melanocortin-4 receptor (MC-4r) may play an important role in metabolism and obesity. Researchers demonstrated that mice without MC-4r developed maturity-onset obesity, as indicated by increased weight, high blood sugar and insulin levels. These conditions also characterize maturity-onset diabetes in humans. In 1993, HPI scientists discovered a series of proprietary compounds that can influence the activity of several melanocortin receptors, including MC-4r. MC receptors are G protein-coupled receptors distributed in the brain and in other parts of the body. HPI and others have previously found therapeutic potential of MC receptors in pain and inflammation through the regulation of cytokines. Recently there has been a growing body of evidence that supports their potential role in diabetes and obesity. HP 228 binds to MC-4r, as well as other MC receptors, and stimulates their activity, as shown in animal studies. Consistent with the implications reported in the articles, HP 228 has been shown to cause a reduction in body weight, blood glucose, and insulin levels in animal models of diabetes and obesity. The results of a recently completed Phase IIa clinical study of HP 228 in obese, Type II diabetics show no significant safety concerns in the 17 patients who received the drug. The company plans to initiate efficacy studies this year. "We are impressed by the collaborative work of this group of scientists," stated Robert S. Whitehead, HPI's president and chief executive officer. "It has certainly resulted in a better understanding of the MC-4r signaling pathway and has further supported our belief that compounds developed to modulate the activity of the various melanocortin receptors may have very important therapeutic benefits." "At HPI, we have focused a significant amount of our research and development activity on the pharmacological effects, both stimulatory and inhibitory, of our internally-discovered compounds on the MC receptors," stated Bernard D. King, M.D., HPI's executive vice president of biological sciences and development. "We have concentrated in the areas of diabetes, obesity, and inflammation and our discoveries have allowed us to be the first group to advance a MC receptor-active compound into the clinic for evaluation in obese diabetic patients. These papers further support the rationale for the use of HP 228 in this patient population." HPI is a drug discovery company, which utilizes combinatorial chemistry and combinatorial biology technologies to create novel small-molecule drug candidates. The company leverages its technology platform by entering into pharmaceutical alliances, enabling partners to access HPI's technologies in exchange for licensing fees, potential milestone payments and royalties, or by establishing joint-discovery alliances with biotechnology companies. HPI also uses its drug discovery technologies in its internal development programs. Except for the historical information contained herein, the matters discussed in the news release are forward-looking statements that involve risks and uncertainties, including whether any proposed product can be successfully formulated, scaled-up, developed and commercialized, whether regulatory approvals can be obtained, the impact of competitive products and pricing, and other risks detailed from time to time in HPIs Securities and Exchange Commission (SEC) filings. These forward-looking statements represent HPI's judgment as of the date of this release. Actual results may differ materially from those projected. HPI disclaims, however, any intent or obligation to update these forward-looking statements.
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