Collaboration Agreement Signed with AstraZeneca

Oxford Biomedica PLC
14 February 2000



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Oxford BioMedica plc                                          
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OXFORD BIOMEDICA ANNOUNCES COLLABORATION WITH ASTRAZENECA AND THE
ESTABLISHMENT OF A DRUG DISCOVERY UNIT

Second agreement in the genomics field based on BioMedica's LentiVector(TM)
Technology


Oxford, UK - 14 February 2000: Oxford BioMedica plc announced today that it
has signed a collaboration agreement with the Loughborough based AstraZeneca
R&D Charnwood in the fields of genomics and target validation. The joint
programme will explore the use of BioMedica's proprietary LentiVector(TM) gene
delivery technology to deliver genes to primary cells that are central to a
number of disease processes, including asthma.

This deal is BioMedica's third collaboration that makes use of its core gene
therapy technologies for drug discovery programmes outside the field of gene
therapy. The other two collaborations are with Rhone-Poulenc Rorer and make
use of the Company's gene control technology in drug screens and
LentiVectors(TM) for target validation. 

The interest in BioMedica's technology for drug discovery is such that the
Company has established a new Unit of Drug Discovery under the directorship of
Dr Kyriacos Mitrophanous and Dr Miles Carroll, two of Oxford BioMedica's
senior scientists. The Unit is completely self-financing and will develop
technologies and approaches that arise out of the Company's core technologies.
There are immediate opportunities in the fields of LentiVector(TM) gene
transfer, hypoxia control and MacroGen(TM), the Company's proprietary
macrophage delivery technology.

Commenting on the agreement with AstraZeneca Alan Kingsman, BioMedica's Chief
Executive said: 
'We are pleased to be collaborating with AstraZeneca for the first time.  The
deal adds further confirmation that our technology is not only at the
forefront of gene therapy, but that it can also be applied to the new field of
gene-driven drug discovery. It is also recognition of our very strong position
in this field, having several layers of robust patent applications covering
commercially valuable lentiviral vector systems. We have good reason to
believe that these systems are not covered by any other company's existing
patents. 

'Efficient, safe and regulated gene delivery is required for both effective
gene therapy and for key aspects of the difficult task of unravelling
information generated by the various genomics and proteomics programmes. Our
gene transfer systems deliver these key features which are required by the
major pharmaceutical companies. We anticipate further commercial opportunities
arising from LentiVectors(TM) and other technologies from our new drug
discovery unit'



Notes to Editors

1. Oxford BioMedica plc
Established in 1995, the Company specialises in the development and
application of gene-based therapeutics using advance gene delivery
technologies for the treatment of disease in the areas of oncology, viral
infection and neurodegenerative disease.  Oxford BioMedica plc was floated on
the UK Alternative Investment Market of the London Stock Exchange in December
1996.

2.  AstraZeneca
AstraZeneca is a major international healthcare business engaged in the
research, development, manufacture and marketing of ethical (prescription)
pharmaceuticals and the supply of healthcare services.   It is one of the top
five pharmaceutical companies in the world with healthcare sales of $13
billion and leading positions in sales of gastrointestinal, oncology,
anaesthesia including pain management, cardiovascular, central nervous system
(CNS) and respiratory products. 

3.  Genomics and proteomics
The exploitation of the knowledge of gene sequences and the pattern of
expression of proteins are called genomics and proteomics respectively. These
two areas generate a vast amount of data describing correlations between the
expression of genes and particular diseases. However, although these
approaches are extremely powerful, they only yield correlations, not
causative, mechanistic relationships between gene expression and disease. As a
result, the challenge facing the industry is to establish, from a large number
of correlations, those genes with a causative relationship to disease which
should be the target for drug development. The process of identifying genes
linked to disease is known as target validation.

4.  Target validation 
This involves taking candidate genes and putting them into cells, either in
culture or in animal models, and establishing whether the presence of that
gene produces an effect that is linked to disease. If it does, then that gene
is validated as a target for further drug development. 

The process of gene validation is costly and time consuming and the
pharmaceutical industry has invested heavily in genomics and proteomics
programmes with major collaborations in both fields.  Many also have allocated
substantial in-house resources to these activities. As a result, the industry
is constantly looking for better ways of validating targets, which is why the
application of the lentiviral vector system may make a considerable
contribution.

5. Lentivirus vector systems and the process of drug discovery.
In the process of target validation, it is very important that the vehicle
that delivers the candidate gene, the vector, produces no effect in the cell
that might be confused with the effects of the candidate gene. This is where
the LentiVector(TM) technology is so powerful.

Lentiviruses, which form the basis of LentiVector(TM) technology, have similar
features to retroviruses in the ease of manipulation, predictable integration
and reliable gene expression and regulation.  However, their main advantage
over retroviruses is the ability to function in non-dividing cells or cells
that are dividing slowly.  This is a particular feature of many cells that
have been identified by the pharmaceutical industry as important targets for
drug discovery and development.  

In addition, not only do LentiVectors(TM) deliver genes efficiently to many
cell types that are important in disease processes but they generate no
detectable adverse effects on the cell or tissue that receives the candidate
gene. Effects that are seen in such experiments can be attributed, therefore,
to the gene alone.

6. Worldwide web
This release is also available on the Worldwide Web at
http://www.oxfordbiomedica.co.uk