PPL Therapeutics and Bayer Corporation Announce

Collaboration to develop Recombinant Aerosol Formulation for AAT deficiency.

PPL Therapeutics, one of the world leaders in the application of transgenic animal
technologies and Bayer Corporation, a research based company with major
businesses in healthcare, life sciences and chemicals, have signed an agreement
to develop transgenically produced recombinant replacement therapies for alpha
1 antitrypsin (AAT) deficiency-related emphysema and cystic fibrosis. Bayer and
PPL plan to manufacture and commercialise an aerosol formulation of
transgenically produced recombinant AAT (rAAT) globally.

Martyn Breezer, Commercial Director of PPL Therapeutics said "Bayer is the best
possible partner for this product, being already in the congenital deficiency market
with its plasma derived AAT, Prolastin, given intravenously is currently the only
available product for chronic replacement of AAT in congenitally AAT deficient
patients with clinically demonstrable panicinar emphysema.

An aerosol formulation of rAAT would be delivered directly to the lungs via a
nebulizer. The formulation is expected to provide improved patient convenience
and compliance. In addition, the transgenic source will increase supply of the
product, making replacement therapy available for more AAT, deficient patients.