Acquisition Marks Strategic Entry Into DNA-Based Vaccines
  New Technology Platform has Potential to Leapfrog Decades-Old, Egg-Based
                    Vaccine Technology Currently in Use

    NEW YORK, and OXFORD, England, Oct. 9 /PRNewswire-FirstCall/ -- Pfizer
Inc announced today it has entered into an agreement to acquire PowderMed
Ltd., a privately held U.K. company specializing in the emerging science of
DNA-based vaccines.
    PowderMed has developed a unique and proprietary technology to deliver
DNA directly to the cells of the body's immune system and is advancing a
promising pipeline of proprietary vaccine candidates for influenza and
chronic viral diseases.
    "This acquisition is a strategic opportunity to enter the vaccine
market and is part of our focus on broadening healthcare solutions for
patients," said Jeffrey B. Kindler, chief executive officer, Pfizer Inc.
"There is a critical public health need for new, more effective vaccines to
prevent and treat infectious diseases. As understanding of the human immune
system continues to grow exponentially, PowderMed is on the leading edge of
advances in vaccine technology that may lead to new vaccines for infectious
diseases."
    "This acquisition is an example of the fresh approach Pfizer is taking
to business development," said David Shedlarz, vice chairman of Pfizer.
"With PowderMed's novel DNA technology and its portfolio of early-stage
vaccine candidates, we are adding high-potential, externally sourced
product candidates and technologies to our research and development
portfolio."
    Needle-free delivery system produces robust immune response
    PowderMed's vaccine development program is based on its Particle
Mediated Epidermal Delivery (PMED) technology, a needle-free delivery
system that delivers DNA-coated microscopic gold particles into the skin
using pressurized helium gas. The particles penetrate the epidermal layer
of the skin activating cells that in turn trigger an immune response.
Vaccines based on the PMED technology have been shown to elicit both
antibody and cell mediated immune responses, which could lead to improved
efficacy compared to traditional vaccines.
    PowderMed's DNA-Based Vaccines

    *  Vaccine development program based on Particle Mediated Epidermal
       Delivery (PMED) technology

    *  A needle-free delivery system

    *  Delivers DNA-coated microscopic gold particles into the skin using
       pressurized helium gas

    *  Particles penetrate the epidermal layer of the skin activating cells
       that in turn trigger an immune response

    *  Vaccines based on PMED technology have been shown to elicit both
       antibody and cell mediated immune responses

    *  Could lead to improved efficacy compared to traditional vaccines

    New technology has potential advantages over egg-based vaccines
    PowderMed is at the forefront of a scientific effort to overhaul a
vaccine manufacturing system that has remained largely unchanged for the
last 50 years. The current system produces flu vaccine inside chicken eggs,
a time- consuming process that takes up to nine months. The process is
constrained by limited manufacturing capacity and a limited ability to
quickly adapt vaccines to emerging strains of influenza.
    PowderMed's vaccines are being developed in formulations that are
stable at room temperature, potentially eliminating the need for cold
storage of vaccines. The user-friendly PowderMed delivery device requires
minimal medical training and may allow for self-administration.
    PowderMed's DNA-based technology platform has the potential to leapfrog
both egg-based vaccine technology and the cell-based vaccine technology
currently being developed.
    "While the research is at an early stage, DNA-based vaccines may be the
next major innovation against the threat of influenza and other chronic
viral diseases," said Dr. John LaMattina, president, Pfizer Global Research
and Development. "PowderMed's technology may lead to new vaccines that are
easier to use and store than current vaccines and may have the advantage of
being more quickly adaptable to changing strains of influenza."
    Seasonal flu candidate highlights vaccine pipeline
    PowderMed has DNA-based influenza vaccines in clinical development for
prevention of both seasonal and avian flu. The most advanced candidate is
entering Phase II clinical studies for seasonal flu. PowderMed's pipeline
also includes vaccines in Phase I development for herpes simplex virus
(HSV) and chronic hepatitis B (HBV) and a preclinical project in genital
warts (HPV).
    "I am delighted that the potential of the PowderMed technology to
revolutionize the prevention and treatment of infectious diseases is now in
the hands of the world's leading pharmaceutical company," said Dr. Clive
Dix, Founder and CEO PowderMed Ltd. "This agreement is a testament to the
hard work and commitment of the PowderMed employees over the years."
    Rolf Stahel Chairman of PowderMed Ltd. added, "PowderMed is a great
success story. Through the financial support of a syndicate of leading life
science investors and an experienced management team, led by Clive Dix,
PowderMed has made outstanding progress in the development of its pipeline
of DNA-based vaccines as reflected in this deal reached with Pfizer."
    PowderMed's venture investors included Abingworth Management, Advent
Venture Partners, Oxford Bioscience Partners and SV Life Sciences.
PowderMed was advised in the deal by Lehman Brothers and Ashurst.
    Financial terms of the acquisition were not announced. The acquisition
is subject to customary closing conditions (including approval under the
Hart- Scott-Rodino Antitrust Improvements Act of 1976), and is expected to
close during the fourth quarter of 2006.
    More information on both companies and the PowderMed technology can be
found at http://www.pfizer.com and http://www.powdermed.com.
    PFIZER DISCLOSURE NOTICE: The information contained in this release is
as of October 9, 2006. The Company assumes no obligation to update any
forward- looking statements contained in this release as a result of new
information or future events or developments.
    This release contains forward-looking information about an agreement by
Pfizer to acquire PowderMed Ltd. and about PowderMed's research and
development programs, possible product candidates that may result from
those programs and the potential benefits of such product candidates. Such
information involves substantial risks and uncertainties including, among
other things, the satisfaction of conditions to closing the agreement; the
uncertainties inherent in research and development activities; decisions by
regulatory authorities regarding whether and when to approve any drug
applications for product candidates that may result from such programs as
well as their decisions regarding labeling and other matters that could
affect the availability or commercial potential of such product candidates;
and competitive developments.
    A further list and description of risks and uncertainties can be found
in Pfizer's Annual Report of Form 10-K for the fiscal year ended December
31, 2005 and in its reports on Form 10-Q and Form 8-K.

Link to this page:

  

http://www.prnewswire.com/comp/688250.html/
CONTACT:
Pfizer Contacts: Stephen Lederer, U.S. Media,
+1-860-732-9783, or Joel Morris, UK Media, +44-1304-648922, or
PowderMed Contacts: Dr. Clive Dix, CEO, +44-0-1865-501-549, or
Sue Charles, Northbank Communications, Ltd, +44-0-20-3008-7562

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