BioLineRx In-Licenses Innovative Platform for the Treatment of Neurological Disorders from Tel...

Business Editors/Health/Medical Writers

BIOTECH ISRAEL 2004

JERUSALEM, Israel--(BUSINESS WIRE)--May 5, 2004

Implements in-licensing strategy and builds proprietary drug

pipeline

BioLineRx Ltd., Israel's only specialized drug development company,

today announced that it has signed an in-license agreement covering the development of novel compounds for the treatment of neurological disorders including schizophrenia, neurodegenerative disease and cancer. The worldwide exclusive license agreement was signed with Ramot at Tel Aviv University Ltd., the technology transfer company of Tel Aviv University, and Bar Ilan Research & Development Company Ltd. (BIRAD), the technology transfer office of Bar Ilan University for technologies developed by leading scientists and physicians at their universities.

"This agreement implements our in-licensing strategy which aims to build a robust product pipeline of ethical pharmaceutical products for out-licensing to leading global marketers," said Dr. Morris C. Laster, CEO of BioLineRx. "The platform covers multiple compounds that are ideal candidates for this strategy -- meeting not only our strict scientific in-licensing criteria but also representing extremely large market opportunities.

"These exciting drug candidates are the fruit of joint research performed at Tel Aviv and Bar-Ilan Universities. Licensing them to BioLineRx is the logical next step to advance these potential therapeutics into the clinic," said Isaac T. Kohlberg, CEO of Ramot, "Tel Aviv University fosters innovative relationships with industry to enable the translation of scientific findings emerging from the university into novel therapies which will benefit the lives of patients worldwide".

According to Gabriel Kenan, CEO of BIRAD: "Tight collaboration between academia with novel technologies and entrepreneurial companies will result in products that provide innovative solutions to the marketplace."

The first targeted indication of the licensed platform, schizophrenia, is a chronic and devastating disorder in thought processing, resulting in inappropriate social interactions, disorganized and irrational thinking, and inability to carry out decisions and activities of basic daily living. Without effective medical treatment, patients cannot function independently and require hospitalization. Classic antipsychotics are extremely effective in improving the clinical manifestations of schizophrenia. Their use, however, is severely limited by adverse effects on muscle control, manifested as impaired muscle movement and embarrassing tics. Most schizophrenia patients eventually stop taking their medication and revert to a debilitating pathology. BioLineRx's first compound based on the licensed platform has demonstrated in vivo antipsychotic efficacy with a significant reduction in adverse events. BioLineRx intends to complete feasibility testing before embarking on a full scale pre-clinical development program.

Schizophrenia affects 1% of the population, amounting to 3 million people in the US and 8 million people worldwide. The resulting worldwide antipsychotics market is expected to surpass $8 billion in 2004. Competition in the antipsychotics market is expected to increase in 2008 as generic competition rises. It is clear, however, that a novel drug offering an improved therapeutic profile will capture a considerable market share.

About BioLineRx, Ltd.

Founded in 2003 by leaders in the Israeli life-sciences sector, BioLineRx is committed to bridging the gap between innovative R&D and the global pharmaceutical industry with proprietary ethical drug products. BioLineRx is focused on advancing projects from early stage discovery and lead generation to advanced clinical trials, regulatory approval and marketing. Partnering with researchers, universities and biotech companies to further the commercialization of promising compounds, BioLineRx enriches the pipeline of large pharmaceutical companies seeking their next blockbuster drugs. For more information, visit www.biolinerx.com.

About Ramot at Tel Aviv University Ltd.

Ramot, the technology transfer company of Tel Aviv University (TAU), seeks to strengthen the relationship between TAU's research community and the business community, and to expedite the transfer of promising new technologies from the laboratory to the market place. Ramot identifies emerging technologies ripe for commercial development, establishes patent positions, structures research and license agreements and forms R&D collaborations, joint ventures and start up companies.

About BIRAD at Bar-Ilan University

Bar-Ilan Research & Development Co. Ltd. was established by Bar-Ilan University in order to develop and commercialize the applied research and to transfer the technology invented by the researchers at the University. This follows the basic concept that intellectual property and other innovative developments that have a potential to be industrial products should be nurtured in a business environment. Functioning as a commercial entity, the Company can most efficiently interface between scientific and technological development at the University and the world of business and industry.