SIBIA Neurosciences, Inc. Signs Licensing
Agreement with Meiji Seika Kaisha, Ltd. For
Development and Marketing of Parkinson's
Disease Compound in Asia

Source: PR Newswire

LA JOLLA, Calif., March 3 /PRNewswire/ via Individual Inc. -- SIBIA
Neurosciences, Inc. (Nasdaq-NNM: SIBI) today announced that it has
signed a licensing agreement with Meiji Seika Kaisha, Ltd. for the
development and commercialization of SIB-1508Y as a first-of-type
treatment for Parkinson's disease. Because of SIB-1508Y's unique
mechanism of action, SIBIA believes the compound has the potential to
fundamentally change the treatment paradigm for Parkinson's disease.

Under the agreement, SIBIA will receive from Meiji a substantial
licensing fee, milestone payments and royalties on future product
sales. SIBIA will supply SIB-1508Y to Meiji for clinical use and will
retain rights for the commercial manufacture of SIB-1508Y. The
territory covered by the agreement includes Japan, China and certain
other Asian countries, where the total number of Parkinson's patients
exceeds that of the United States.

SIBIA's proprietary nicotinic acetylcholine receptor agonist,
SIB-1508Y, is one of several new classes of compounds discovered by
SIBIA that are selective for specific human receptor/ion channel
subtypes in the brain. These receptor subtypes modulate communication
between nerve cells and play a key role in a variety of neurological
disorders.

SIB-1508Y acts at certain nicotinic acetylcholine receptor subtypes
that regulate the release of the neurotransmitters dopamine and
acetylcholine, both particularly relevant in the deficits caused by
Parkinson's disease. A deficiency of dopamine in specific brain
regions has been shown to be a major factor in the onset and
progression of Parkinson's disease, which has traditionally been
viewed as a disorder of motor function. It is now recognized that
cognitive deficits, including difficulties in planning and abstract
thinking, are also frequently seen in Parkinson's patients, and
reduced acetylcholine levels are presumed to be important in these
aspects of the disease. In pre-clinical animal models of Parkinson's
disease, SIB-1508Y has demonstrated a positive effect on both motor
and cognitive deficits. Based on these studies, SIBIA believes
SIB-1508Y offers distinct advantages over currently available
therapies that only address the motor deficits of this disorder. Also,
given its receptor subtype selectivity, SIB-1508Y could be more
effective and have fewer side effects than existing drugs.

Commenting on the announcement, SIBIA President and CEO William T.
Comer, Ph.D., stated, "We are pleased to announce this strategic
licensing agreement for SIB-1508Y, our lead candidate for the
treatment of Parkinson's disease. Meiji is building a strong presence
in therapeutics for central nervous system (CNS) disorders, and we
expect SIBIA to benefit from their efforts. The Asian marketplace
represents a significant opportunity for this compound, and we look
forward to working with Meiji to advance this revolutionary approach
to a devastating disease."

Dr. Comer added that signing this agreement reflects the Company's
business strategy to focus on the discovery and early-stage
development of innovative drug candidates, then partner with larger
pharmaceutical companies for their clinical development and
commercialization. SIBIA believes such a strategy enables the Company
to maximize the potential of its technology platforms by increasing
the number of compounds it can study in the clinic and increasing
near-term revenue opportunities. The Company currently is in
discussions with potential licensing partners for the development and
commercialization of SIB-1508Y in the U.S. and Europe.

Meiji Seika Kaisha, Ltd. is engaged in the manufacture and sale of
confectioneries and pharmaceuticals including agrochemicals and animal
health products. The Company's drug discovery and development efforts
are focused on CNS disorders and cardiovascular diseases in addition
to infectious diseases.

SIBIA Neurosciences, Inc. is engaged in the discovery and development
of novel, small molecule therapeutics for treating disorders of the
nervous system based on its unique approach to characterizing the
molecular processes involved in such disorders. SIBIA is focusing its
efforts on developing compounds for the treatment of Parkinson's
disease, Alzheimer's disease, stroke, head trauma, epilepsy, chronic
pain, schizophrenia and other disorders. The Company currently has
collaborations with Eli Lilly and Company, Novartis (formerly
CIBA-GEIGY Limited) and Bristol-Myers Squibb Company.

This press release contains forward-looking statements that involve
risks and uncertainties. As a result, actual results could differ
materially from those discussed herein. These risks and uncertainties
include SIBIA's early stage of development, the new and uncertain
state of SIBIA's technologies, SIBIA's future capital needs and the
uncertainty of receiving additional funding, uncertainties regarding
patents, proprietary rights and regulatory matters, and other
research, development and market risks. These and other risks and
uncertainties are more fully set forth in SIBIA's Prospectus included
in its Registration Statement on Form S-1 filed in connection with its
initial public offering, as well as in SIBIA's most recently filed
Form 1O-Q. SOURCE SIBIA Nuerosciences

/CONTACT: Michael J. Dunn, Vice President, Business Development of
SIBIA Neurosciences, 619-452-5892/ (SIBI) CO: SIBIA Neurosciences,
Inc.; Meji Seika Kaisha, Ltd. ST: California IN: MTC SU: BG-TM --
LAM100 -- 3189 03/03/97 14:17 EST
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