Pharmaceutical Company Develops New Drug That Could Replace Lipitor

ANN ARBOR, Mich. QuatRx Pharmaceuticals Company, a privately-held biopharmaceutical development company focused on new therapies for the treatment of cardiovascular, metabolic and endocrine diseases, today announced that it has acquired exclusive worldwide rights to a novel, orally-active compound for the treatment of lipid disorders and obesity. QuatRx licensed the compounds from EndoChem, Inc., a biotechnology company headquartered in Berkeley, California. This new compound, called QRX-431, is designed to treat lipid abnormalities involving LDL-cholesterol and Lp(a), both recognized as risk factors for cardiovascular disease. The compound may potentially be used as a single agent or in combination with currently available lipid-lowering drugs, and also has potential in the treatment of obesity. When approved, QRX-431 will enter the rapidly expanding market for lipid-regulating therapies, the largest pharmaceutical product category in the world. The global lipid-regulating market is currently $30 billion and is expected to exceed $40 billion in global sales by 2010.

"QRX-431, which works by a mechanism different than that of existing therapies, represents a potential breakthrough therapy for the treatment of lipid disorders and obesity," said Robert L. Zerbe, M.D., Chief Executive Officer and President of QuatRx. "It holds the promise of providing physicians a new and important therapeutic option in this vast and growing category. For QuatRx, this addition to our portfolio represents an outstanding fit with our growing dyslipidemia portfolio and our team's experience in developing successful lipid-regulating drugs, including Lipitor®, the number-one cholesterol medicine in the world."

In addition to QRX-431, QuatRx's current development portfolio consists of three in-licensed compounds; two address dyslipidemia while another targets psoriasis. QuatRx's lead dyslipidemia compound, QRX-401 entered Phase I human clinical trials in mid-2004. QRX-401 is a unique non-statin, dual-action, lipid-lowering compound which lowers LDL cholesterol and Lp(a), both independent risk factors for cardiovascular disease. Another dyslipidemia therapeutic, QRX-411, is an HDL cholesterol (good cholesterol) elevating compound. QRX-101, QuatRx's first development compound, is a topical vitamin D analogue treatment for psoriasis. It has successfully completed two human clinical Phase IIa studies and entered Phase IIb studies in 2004. QRX-101 is expected to enter Phase III studies in 2005.

About QRX-431

QRX-431 is a novel thyroid hormone agonist shown to reduce both LDL cholesterol and Lp(a), as well as weight, in primate models and is expected to enter clinical trials within a year. LDL-cholesterol and Lp(a) are two known independent risk factors for cardiovascular disease.

"Assuming these studies confirm the impressive results seen in primate models, this drug will provide a significant new dimension to the treatment of lipid disorders and obesity," said Randall W. Whitcomb, M.D., Chief Medical Officer of QuatRx.