OXFORD BIOMEDICA

RECEIVES GOVERNMENT GRANT FOR REVOLUTIONARY NEW TECHNOLOGY IN GENE THERAPY

New Technology Aims to Deliver Therapeutic Genes with the Highest Efficiency to Date

Oxford BioMedica plc, a world leader in retroviral gene delivery technologies, has been awarded a UK Department of Trade and Industry (DTI) Link grant for almost a quarter of a million pounds to develop a revolutionary process for the production of retroviral vector particles for gene therapy. Over a period of three years, the funding will be used to develop the novel technology which has the potential to deliver genes at efficiencies higher than any of the current available methods opening a raft of therapeutic opportunities.

In collaboration with Dr Ian Jones of the Natural Environmental Research Council (NERC) Institute of Virology & Environmental Microbiology, Oxford BioMedica will use an insect virus known as a Baculovirus to produce the retrovirus vector particles. This approach is a sort of virus within a virus technology that the Company has called its 'Russian Doll' production system. The Company has shown already that this technology can produce vast amounts of retrovirus particles and the new work is designed to ensure that those particles carry and deliver high potency therapeutic genes with the highest gene transfer efficiencies yet achieved.

Derivatives of retroviruses have been the most commonly used gene delivery systems for gene therapy trials to date. In the early versions of these vectors there were some technical limitations that threatened their commercialisation: the generation of potentially hazardous components of the vector systems; the inability of these vectors to deliver genes to non-dividing cells and low gene transfer efficiencies (when compared with systems based on some other viruses such as the adenovirus vectors).

The new third generation retrovirus vector systems, such as those developed by Oxford BioMedica, have overcome these limitations making retroviruses a compelling choice for the new wave of gene therapy products. Meticulous engineering of the systems has eliminated the production of replication competent virus. The newer vectors are based on a sub-group of retroviruses known as lentiviruses. They deliver genes to both dividing and non-dividing cells. In addition, new human cell production technologies produce gene transfer efficiencies close to those achieved with the adenovirus systems but without the inflammatory responses associated with the use of human pathogens such as adenoviruses.

Peter Nolan, Director of Operations, Oxford BioMedica, said: 'This Government Award, in recognition of Oxford BioMedica's advanced gene-based technologies, strengthens the Company's leading position in the development and application of retroviral gene delivery technologies for the treatment of human disease.'

Dr Ian Jones, Project Leader, NERC Institute of Virology and Environmental Microbiology, said: 'Collaborating with Oxford BioMedica gives us the opportunity of working on a ground breaking technology in partnership with a leading gene therapy company. Their expertise will allow us to develop advanced retroviral gene delivery technologies geared to the delivery of improved therapeutics in the future.'

Notes to Editors

1. Oxford BioMedica, established in 1995, specialises in the development and application of gene-based therapeutics using advanced retroviral gene delivery technologies for the treatment of disease in the areas of: oncology, viral infection, neurobiology and genetic deficiency. Oxford BioMedica plc was floated on the UK Alternative Investment Market of the London Stock Exchange in December 1996.

2. Further information on Oxford BioMedica can be obtained from its website: http://www.oxfordbiomedica.co.uk/

3. Dr Ian Jones, Project Leader, NERC Institute of Virology and Environmental Microbiology, has 15 years of experience in molecular virology and is an international authority on retrovirus assembly and baculovirus technology.

4. The NERC has the responsibility for research on the ecology and variation in microbes, plants and animals in the natural environment. NERC's ability to explore diverse environments and its knowledge of populations and processes provides potential for the industrial exploitation of novel properties of organisms.

5. The DTI's LINK Award aims to bring together new areas of industry with the UK science base and Government in areas of strategic importance to the national economy. The DTI's Cell Engineering Programme, under which the Award has been granted to Oxford BioMedica, aims to encourage collaborative research to draw on and develop the strong UK science base in this area. It is designed to investigate the means of manipulating the phenotypes of cells or other organisms from plants, animals or micro-organisms for use in the development of speciality chemicals.

5. The DTI Link Award follows the recent Teaching Company Scheme (TCS) grant, received by Oxford BioMedica in July 1997, from the Biotechnology and Biological Sciences Research Council (BBSRC). The £140,020 will be used to fund two postdoctoral research associates to develop the Company's novel anti-cancer tumour targeting technology based on the exploitation of macrophages to infiltrate solid tumours and establish in situ factories for the production of anti-cancer therapeutics at the sites.