Vernalis & Servier Sign 3rd Oncology Collaboration

LSE: VER

Vernalis and Servier Sign Third Oncology Collaboration

Vernalis plc, Winnersh, UK and Servier, Suresnes, France - January 17, 2012 announce they have entered into a new three-year joint oncology collaboration focused on the discovery of drugs for a new undisclosed target.

The collaboration will utilise Vernalis' proprietary fragment and structure-based drug discovery platform and Vernalis will receive fees and a share in the future success of the product in the form of milestones and royalties on sales. Financial terms of the collaboration are not disclosed. This is the third collaboration between Vernalis and Servier on undisclosed oncology targets.

Ian Garland, CEO of Vernalis commented "This third collaboration with Servier is yet another endorsement of the strength of our fragment and structure-based drug discovery platforms. We look forward to another successful collaboration and to continuing the excellent relationship we have developed with Servier over the last four years.

Vernalis technologies, capabilities and products have been endorsed by discreet collaborations with Biogen Idec, Endo, Genentech, GSK, Lundbeck, Menarini, Novartis and Servier".

Bernard Marchand, PhD, Head of Servier Research, added: "We are delighted to expand again our collaboration with Vernalis. One of Servier's strategic objectives is to accelerate our discovery process for innovative therapies in cancer, and Vernalis technology and scientists are offering a very valuable complement to our internal activities."

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About Servier

Servier is a privately-run French research-based pharmaceutical company with a 2011 turnover of €3.9 billion. Servier invests 25% of its turnover in R&D. Current therapeutic domains for Servier medicines are cardiovascular, metabolic, neurological, psychiatric and bone and joint diseases as well as oncology. Servier is established in 140 countries worldwide with over 20,000 employees. More info at: www.Servier.com

About Vernalis

Vernalis is a revenue generating development stage pharmaceutical company with significant expertise in drug development. The Group has one marketed product, frovatriptan for the acute treatment of migraine, and eight candidates in development, seven of which are designated priority programmes. Four of these priority development programmes are currently unpartnered and three are partnered. Pipeline programmes are derived from both our own research activities where we have significant expertise in fragment and structure based drug discovery, as well as from collaborations. Our technologies, capabilities and products are endorsed by collaborations with Endo, Genentech, GSK, Lundbeck, Menarini, Novartis and Servier.

For further information about Vernalis, please visit www.vernalis.com

Vernalis Forward-Looking Statement

This news release may contain forward-looking statements that reflect the Company's current expectations regarding future events including the clinical development and regulatory clearance of the Company's products, the Company's ability to find partners for the development and commercialisation of its products, as well as the Company's future capital raising activities. Forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors including the success of the Company's research strategies, the applicability of the discoveries made therein, the successful and timely completion of clinical studies, the uncertainties related to the regulatory process, the ability of the Company to identify and agree beneficial terms with suitable partners for the commercialisation and/or development of its products, as well as the achievement of expected synergies from such transactions, the acceptance of frovatriptan and other products by consumers and medical professionals, the successful integration of completed mergers and acquisitions and achievement of expected synergies from such transactions, and the ability of the Company to identify and consummate suitable strategic and business combination transactions.