Axys Pharmaceuticals Broadens Oncology Research Efforts

Axys Pharmaceuticals Inc. is reallocating a significant amount of its resources in an effort to broaden its research efforts in oncology. As a result, the Company is increasing the number of oncology researchers from its current level of 50 to approximately 120. Axys has also eliminated a number of positions that are not currently supporting partnered programs or the company's oncology initiative. The company expects this move will result in savings of approximately $7-8 million on an annualized basis.

John Walker, chairman and chief executive officer of Axys, explained that after careful assessment of the company's strategic direction, three focus areas have been identified—partnered drug discovery programs; oncology initiatives; and technology spin out organizations, such as Advanced Technologies, Xyris and Pharmacogenomics.

As part of the Company's strategic and operational redirection, a number of positions are being terminated. The workforce reduction brings the total number of Axys employees to approximately 400. Of that number, 155 will be dedicated to partnered programs and approximately 100 will be involved in Axys' affiliated businesses in agricultural biotechnology (Xyris Corp.) and pharmacogenomics, as well as its Advanced Technologies Division (combinatorial chemistry).

Over the last few years, Axys has built a pipeline of oncology programs which range from gene identification and gene function, to lead identification and preclinical development. Additional researchers working on these programs will help speed the process of moving these potential drugs from the research phase into clinical development. The Company's lead oncology program focuses on inhibiting urokinase, a serine protease that plays a role in angiogenesis and tumor metastasis.

For more information: Axys Pharmaceuticals Inc., 180 Kimball Way, South San Francisco, CA 94080, USA. Telephone: 650-829-1000. Fax: 650-829-1001.