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Sunday, 11/10/2002 1:40:32 PM

Sunday, November 10, 2002 1:40:32 PM

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Company Profile:

Demegen is a public clinical stage biopharmaceutical company which develops natural and novel peptides The primary drugs under development target significant markets for which there are few, if any, satisfactory alternatives. These include treatment for oral candidiasis, a disease prevalent in HIV patients, a treatment for mucositis, a disease that affects many patients receiving chemotherapy and radiation therapy for head and neck cancers, and a treatment for Pseudomonas infections in Cystic Fibrosis patients, a disease that can be fatal to children. A number of additional applications for preventing or treating infectious disease are also in the development pipeline. Demegen’s business strategy is to develop the cystic fibrosis application through Phase II proof of concept and then effect a partnership with a large partner. The Company expects to receive financial support from the Cystic Fibrosis Foundation and from a partner with an aerosol delivery system. Other molecules and applications will be licensed at their current stage of development and negotiations are already underway for some applications.

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