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GroPep to pursue promising asthma drug following preclinical study results

Adelaide biotechnology company GroPep has completed preclinical efficacy studies of its T-cell peptide drug candidate, in models of psoriasis and asthma.

GroPep will undertake a market feasibility assessment for the use of the drug in asthma but will cease development for psoriasis.

Current annual sales of asthma drugs in the United States alone exceed US$4.0 billion and are growing at over 10%. GroPep has international patent coverage for the T-cell peptide technology.

Listed biopharmaceutical company GroPep Limited (ASX: GRO) announced today that it had completed testing of its T-cell peptide drug candidate in preclinical models of asthma and psoriasis.

The results showed that the drug was highly effective in treating asthma but had little effect in a model of psoriasis when applied to the skin, even in an efficient formulation. As a result, the Company will direct its resources in the highly profitable field of immune-based diseases towards asthma, and will cease development for psoriasis.

As previously reported by the Company, initial research conducted at the Royal North Shore Hospital, Sydney by Professor Manolios showed the drug has potential in a range of autoimmune diseases.

Exclusive, worldwide rights to key patents covering the drug were obtained by GroPep in 2002, through a licence from the Northern Sydney and Central Coast Area Health Service.

In May 2005, GroPep filed a new International Patent Application on the use of the drug for the treatment of asthma, based on the work of Professor Enk at the University of Mainz, Germany Asthma affects more than 15 million people in the US alone and 100 million people worldwide. The market is increasing because of an ageing population and the contribution of pollution, smoking and airborne allergens. Current sales of asthma drugs in the United States alone exceed US$4.0 billion and are growing annually at over 10%.

GroPep's Chief Operat
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Contact: Tony Mitchell
61-883-547-700
Research Australia
14-Dec-2005


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