Zeneca signs memorandum of agreement with Glaxo Wellcome to acquire new migraine treatment

Business Wire, Feb 8, 1996

WILMINGTON, Del.--(BUSINESS WIRE)--Feb. 8, 1996--Zeneca and Glaxo Wellcome today announced the signing of a memorandum of understanding whereby Zeneca will acquire Glaxo Wellcome's product 311C90, a 5-HT1D agonist in Phase III development for the treatment of migraine.

Glaxo Wellcome is obliged to divest 311C90 under the provision of the US Federal Trade Commission (FTC) consent order issued following the acquisition of Wellcome by Glaxo in March 1995.

Zeneca and Glaxo Wellcome will continue negotiations on the terms of the acquisition with the intention of reaching final agreement in accordance with the divestment timetable for 311C90 agreed with the FTC.

Glaxo Wellcome will ensure that the clinical trial development programme for 311C90 continues without interruption throughout the divestment process.

David Barnes, Chief Executive of Zeneca, said: "I believe that this outline memorandum agreement will lead to a deal which will benefit both companies. It will further strengthen Zeneca's already very strong flow of new products and extend our presence in this important and growing therapeutic area."

The worldwide migraine market is growing rapidly and is expected to reach $2.3 billion by the year 2000.

The agreement is subject to approval by the FTC.

In the US, Zeneca is a $2.5 billion bioscience company with 6,500 employees and 45 manufacturing and research and development sites in 29 states. Zeneca is part of the UK-based Zeneca Group PLC (NYSE:ZEN), a major $6.9 billion international bioscience business.

CONTACT: STEVE LAMPERT

ZENECA PHARMACEUTICALS

(302) 886-7862

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JUDITH AUCHARD

ZENECA PUBLIC AFFAIRS

(302) 886-3638

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ED SEAGE

INVESTOR RELATIONS

(302) 886-4065