Ablynx Enters into a Research and License Agreement with Wyeth

Business Wire, Nov 6, 2006

GHENT, Belgium -- Ablynx, the pioneer in the discovery and development of Nanobodies([R]), a novel class of antibody-derived therapeutic proteins, has announced that they have entered into an exclusive research collaboration and license agreement with Wyeth Pharmaceuticals, a division of Wyeth (NYSE:WYE), to discover, develop and commercialise Nanobodies([R]) directed at the tumour necrosis factor alpha (TNF-[alpha]) protein and its receptors that target diseases in multiple therapeutic areas.

Ablynx has granted Wyeth exclusive worldwide rights to Nanobodies([R]) targeting the clinically validated target TNF-[alpha]. Ablynx and Wyeth will collaborate to advance these novel biologics through preclinical development. Ablynx will receive an initial payment, research support and milestone payments. Potential payments to Ablynx could total up to $212.5 million for the successful development and commercialisation of multiple products. In addition Ablynx will receive royalties on product sales.

The alliance is based on Ablynx's novel Nanobody([R]) platform that can be used to rapidly, create novel biopharmaceuticals with distinct advantages over current biologics.

Edwin Moses, Chief Executive Officer of Ablynx commented:

"We are delighted to have established this strategic collaboration. Wyeth has a proven track record in the discovery, development, manufacturing and commercialisation of novel biopharmaceuticals with demonstrated success with Enbrel([R])."

"Wyeth is enthusiastic about this new partnership with Ablynx. Ablynx is an exciting European biotechnology company that has established the feasibility of their novel Nanobody([R]) platform by generating Nanobodies([R]) to more than twenty different targets," said Dr. Frank Walsh, Executive Vice President, Head of Discovery Research, Wyeth Pharmaceuticals. "We look forward to a productive and long lasting partnership with Ablynx."

About Ablynx - www.ablynx.com

Ablynx is a biopharmaceutical company engaged in the discovery and development of Nanobodies([R]), a novel class of therapeutic proteins based on single-domain antibody fragments, for a range of serious and life-threatening human diseases. Ablynx is developing a portfolio of Nanobody([R])-based therapeutic programs in a number of major disease areas, including inflammation, thrombosis, oncology and Alzheimer's disease. Already Ablynx has generated Nanobodies([R]) against more than twenty different disease targets. The company and its collaborators have obtained positive in vivo efficacy data from animal studies in five major therapeutic programs in four disease areas. Importantly, Ablynx has shown the absence of any detectable immunogenicity for its Nanobody([R]) development candidates in advanced primate studies. Today, three of these programs are in advanced preclinical development, and Ablynx expects to initiate its first clinical trials early 2007.

Ablynx has ongoing research collaborations and significant, multi-target partnerships with several major pharmaceutical companies, including Novartis, Centocor (J&J), Kirin Breweries and P&G Pharma. Ablynx is building a diverse and broad portfolio of therapeutic Nanobodies([R]) based on these collaborative deals as well as on its own internal discovery pipeline.

Nanobody([R])-based therapeutics represent a major commercial opportunity as they combine the beneficial features of conventional antibodies, with desirable properties of small-molecule drugs. Because they are derived from naturally-occurring heavy-chain antibodies, Nanobodies([R]) have unparalleled stability and can be administered in a variety of ways (injected, orally, in sprays or creams), thus overcoming the delivery issues associated with full-sized antibodies, that can only be delivered by injection. In addition, because of their unique structure they can also address therapeutic opportunities that are beyond the reach of conventional antibodies or their fragments, for example targeting epitopes such as receptor clefts, enzyme active sites and viral canyon sites. Nanobodies([R]) are manufactured in micro-organisms which also presents a significant cost advantage in comparison to production methods for conventional antibodies.

Ablynx holds the dominant patent position in the field of Nanobodies([R]). It has exclusive and worldwide rights to more than forty families of granted patents and pending patent applications, including the patents covering the basic structure, composition, preparation and uses of Nanobodies([R]) (the eIHamers patents') which have been granted in major territories including the US, Europe and Japan. All products, including therapeutics, that contain Nanobodies([R]) are covered by these patents.

Headquartered in Ghent, Belgium, Ablynx has raised over Dan 70 million (over US$87,5 million) from a strong investor consortium including Abingworth Management (UK), Alta Partners (USA), Biotech Fund Flanders (Belgium), Gilde Investment Management (The Netherlands), GIMV (Belgium), KBC (Belgium), Sofinnova Partners (France), and SR One (USA). Basic Nanobody patents were contributed by its founding institutions VIB and VUB (Vrije Universiteit Brussel).