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Lipoxen PLC (XEN)

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Monday 12 June, 2006

Lipoxen PLC

Research Update

Lipoxen PLC
12 June 2006

                                  Lipoxen PLC
                          ('Lipoxen' or 'the Company')

               Lipoxen Announces Positive Data for its ImuXen (R)
                              Liposomal Technology

     New Hepatitis-E Vaccine Candidate Poised to Enter Clinical Development

London, UK, 12 June, 2006 - Lipoxen PLC (AIM: LPX) a biopharmaceutical company
specialising in the development of high value differentiated biologicals,
vaccines and oncology drugs, today announced positive results in a highly
relevant pre-clinical model with its novel vaccine delivery technology, ImuXen
(R). This technology uses a proprietary liposomal formulation method to deliver
vaccine materials to the immune system, in a manner which is designed to emulate
the response of a natural encounter with the infectious agent. The key benefit
of Lipoxen's ImuXen(R) technology is that it gives rise to strong immunological
responses, akin to that achieved by live attenuated vaccines, while avoiding
completely the risk of infection as a result of vaccination which is a rare but
significant consequence of some live attenuated vaccines.

The positive data, which has been announced today, is from a pre-clinical study
of Lipoxen's vaccine candidate for the prevention of hepatitis-E.  The
collaborative study to determine the vaccine's safety and efficacy was conducted
using Lipoxen's proprietary ImuXen(R) formulation technology, coupled with
manufacturing expertise of the Serum Institute of India Ltd. and the virology
expertise of the National Institute of Virology, Pune, India. The new liposomal
vaccine gave rise to a very strong antibody response against the vaccine
immunogen. After vaccination, there was complete protection from liver disease,
as demonstrated by measurement of liver enzymes, and the lack of virus shedding
as a result of infection, measured by the sensitive technique of 'nested PCR',
following exposure to the live virus.  These results provide a high degree of
confidence that the vaccine will be effective in man and clinical trials are
planned for the first half of 2007.

Hepatitis-E is the most common form of acute hepatitis in developing countries.
It is a debilitating disease picked up from contaminated water affecting
travellers and people who live in parts of the world where rain or floodwater is
liable to contaminate the water supply with human faecal matter. It is
particularly liable to cause outbreaks of hepatitis in military personnel who
have had no previous exposure to the virus. Hepatitis-E, although less serious
than the chronic 'B' and 'C' forms of hepatitis, is potentially fatal, and is
particularly dangerous in pregnant women.  Currently there is no vaccine for

Sir Brian Richards, Chairman of Lipoxen, commented:

'We are very pleased with the pre-clinical results that we have announced today
for our vaccine delivery technology ImuXen(R). The fact that it has allowed us
to develop a new hepatitis-E vaccine demonstrates our capability to create novel
vaccine solutions in an area of unmet medical need. We look forward to moving
this new vaccine candidate into the clinical phase and also to developing a
series of new vaccines in collaboration with our partner the Serum Institute of
India, based on our proprietary ImuXen(R) technology.

'In addition, we believe ImuXen(R) can be applied to improve upon some of the
largest selling vaccines currently on the market, including Wyeth's pneumococcal
vaccine Prevnar(R), which has a market in excess of $1 billion.'


Lipoxen PLC
Peter Laing, Director of Business Development                 +44 (0)7990 523798

Citigate Dewe Rogerson                                       +44 (0)20 7638 9571
David Dible/Yvonne Alexander

Notes to Editor

Lipoxen PLC (LSE:LPX) is a biopharmaceutical company specialising in the
development of high value differentiated biologicals, vaccines and oncology
drugs. Potential products, which address markets in excess of US$1 billion,
currently under development include improved formulations of important
biologicals including EPO, G-CSF, insulin and Interferon-alpha based on
Lipoxen's proprietary PolyXen(R) technology. This technology is designed to
improve the stability, biological half-life and immunologic characteristics of
therapeutic proteins naturally. Lipoxen has two further naturally-derived
proprietary delivery technologies ImuXen(R) and a related liposomal technology
for the formulation of cytotoxic oncology drugs, which are being developed to
enhance the efficacy and safety of various vaccines such as Hepatitis B and
pneumococcal vaccines, as well as a number of anti-cancer agents like
paclitaxel. The Company's proprietary delivery technologies are attracting
significant interest and Lipoxen is already co-developing products with Serum
Institute of India, one of the world's leading vaccine companies. In addition,
its technologies are being currently evaluated by leading biotechnology
companies such as Baxter, Amgen, Genzyme and Genentech.

Lipoxen was admitted to trading on the AIM Market of the London Stock Exchange
in January 2006.

This announcement includes 'forward-looking statements' which include all
statements other than statements of historical facts, including, without
limitation, those regarding the Company's financial position, business strategy,
plans and objectives of management for future operations (including development
plans and objectives relating to the Company's products and services), and any
statements preceded by, followed by or that include forward-looking terminology
such as the words 'targets', 'believes', 'estimates', 'expects', 'aims',
'intends', 'will', 'can', 'may', 'anticipates', 'would', 'should', 'could' or
similar expressions or the negative thereof. Such forward-looking statements
involve known and unknown risks, uncertainties and other important factors
beyond the Company's control that could cause the actual results, performance or
achievements of the Company to be materially different from future results,
performance or achievements expressed or implied by such forward-looking
statements. Such forward-looking statements are based on numerous assumptions
regarding the Company's present and future business strategies and the
environment in which the Company will operate in the future. Among the important
factors that could cause the Company's actual results, performance or
achievements to differ materially from those in forward-looking statements
include those relating to The Company's funding requirements, regulatory
approvals, clinical trials, reliance on third parties, intellectual property,
key personnel and other factors. These forward-looking statements speak only as
at the date of this announcement. The Company expressly disclaims any obligation
or undertaking to disseminate any updates or revisions to any forward-looking
statements contained in this announcement  to reflect any change in the
Company's expectations with regard thereto or any change in events, conditions
or circumstances on which any such statements are based. As a result of these
factors, readers are cautioned not to rely on any forward-looking statement.

                      This information is provided by RNS
            The company news service from the London Stock Exchange