NEWS on Sphermines

[Jane Koenig <jane_koenig@xxxxxxxxxxxxxx>]

Wednesday February 2, 8:04 am Eastern Time
Company Press Release
Titan Announces Corporate Partnership With Schering AG for Development and
Commercialization of Novel Parkinson's Disease Therapy
S. SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Feb. 2, 2000--Titan
Pharmaceuticals
Inc. (AMEX: TTP - news) today announced that it has established a corporate
partnership with Schering AG for the worldwide development, manufacture, and
commercialization of Titan's novel cell therapy for the treatment of
Parkinson's
disease.
Under the agreement, Titan and Schering will collaborate on manufacturing,
and
clinical development of the product. Titan will receive funding for
development
activities, as well as reimbursement of certain prior research and
development
expenses. Schering will fully fund, and manage in collaboration with Titan,
all
future pilot and pivotal clinical studies. Schering AG receives exclusive,
worldwide development, manufacturing, and commercialization rights, and
will pay
Titan a royalty on product sales. Under the agreement, Schering also
retains the
right to make an equity investment in Titan, up to a specified amount, upon
initiation of pivotal clinical studies.
The potential economic value of the agreement, including development
funding and
equity investment, but not including funding of clinical trials and product
royalties, is approximately $26 million.
In addition to collaborative development of Titan's Parkinson's disease
therapy,
Titan and Schering will also mutually explore other potential therapeutic
applications of Titan's CCM(TM) (cell-coated microcarrier) technology,
under a
one year exclusive option granted to Schering under the agreement.
In animal experiments, CCM technology has shown the ability to maintain high
long term viability and function of numerous, diverse cell types, and
represents
a potential broad platform technology for delivery and survival enablement
for
therapeutic cells.
``We are very excited to establish this corporate partnership with Schering
AG,'' stated Dr. Louis R. Bucalo, President and CEO of Titan. ``Schering's
expertise in cell biology, neuroscience, and global resources will help to
maximize the opportunity for our Parkinson's disease product and CCM(TM)
technology.''
``We are pleased to establish this collaboration with Titan,'' stated Dr.
Joachim Kapp, Head of the Business Area Therapeutics of Schering. ``Titan's
technology may establish new opportunities for the treatment of Parkinson's
disease and other serious disorders.''
Titan's product, Spheramine(TM), is a novel, cell-based product for the
treatment of Parkinson's disease, which will utilize non-embryonic, human
retinal pigment epithelial (RPE) cells. RPE cells produce dopamine, a
neurotransmitter that is lacking in certain brain regions in Parkinson's
disease. The product consists of human RPE cells adhered to microscopic,
inert
matrices which allow the long term survival and function of cells that are
implanted into the mammalian central nervous system. Murine and primate
animal
studies have demonstrated the ability of a single treatment of RPE cells on
microcarriers to significantly reverse Parkinson's like symptoms for the
duration of the experimental evaluation, which was up to one year.
In these studies, unmodified human RPE cells survived and functioned
without any
need for immunosuppression or modification of the cells. RPE cells can be
propagated using cell culture methods to produce a large amount of cells, and
tests to date have shown that the cells may be frozen prior to use,
allowing the
potential for a standardized product available on an as needed basis.
Titan Pharmaceuticals, Inc. is a biopharmaceutical company developing
proprietary therapeutics for the treatment of central nervous system
disorders,
cancer, and other serious and life threatening diseases.
Schering AG is a research-based pharmaceutical company. As a global player
with
innovative products, Schering aims for leading positions in specialized
markets
worldwide. Schering's activities are focused on four business areas:
diagnostics, gynecology, therapeutics for disabling diseases (e.g. multiple
sclerosis, cardiovascular and oncology) and dermatology. With in-house R&D
and
an excellent R&D network with external partners, Schering is securing
innovation
and a promising product pipeline.
The press release may contain ``forward-looking statements''within the
meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities
Exchange Act of 1934. Such statements include, but are not limited to, any
statements relating to the Company's development program and any other
statements that are not historical facts. Such statements involve risks and
uncertainties, including, but not limited to, those risks and uncertainties
relating to difficulties or delays in development, testing, regulatory
approval,
production and marketing of the Company's drug candidates, unexpected adverse
side effects or inadequate therapeutic efficacy of the Company's drug
candidates
that could slow or prevent product markets, the uncertainty of patent
protection
for the Company's intellectual property or trade secrets and the Company's
ability to obtain additional financing if necessary. Such statements are
based
on management's current expectations, but actual results may differ
materially
due to various factors, including those risks and uncertainties mentioned or
referred to in this press release.


Contact:

     Titan Pharmaceuticals Inc., S. San Francisco
     Louis R. Bucalo, M.D., President & CEO, 650/244-4990
           or
     Ruder Finn, Inc., New York
     Investors: Wendi B. Green, Account Executive,
      212/593-6374
     Media: Sarah O'Connell, Account Executive, 212/583-2724