Rigel to File IND for Lead Product Candidate R763 by end of 2005

    SOUTH SAN FRANCISCO, California and GENEVA, Switzerland, October 25
/PRNewswire-FirstCall/ -- Rigel Pharmaceuticals, Inc (Nasdaq: RIGL) and
Serono (virt-x: SEO and NYSE: SRA) today announced that they have signed an
agreement under which Serono has been granted an exclusive license to develop
and commercialize product candidates from Rigel's Aurora kinase inhibitor
program. The license is worldwide, except for Japan, which Serono has an
option to include at any time within the next two years.
    Rigel's Aurora kinase inhibitor program includes R763, for which Rigel
expects to file an investigational new drug (IND) application in December
2005. R763 is a highly potent, orally-available multi-Aurora kinase inhibitor
that has been shown in vitro and in in vivo tumor xenograft models to inhibit
proliferation and trigger apoptosis in several tumor cell lines including the
cervix, colon, lung, pancreas and prostate.
    Under the terms of the agreement, Rigel will receive initial payments
totaling $25 million, comprised of a license fee of $10 million and purchase
of $15 million of Rigel's common stock, at a premium to the market price.
With additional development and sales-based milestone payments for R763,
Rigel could receive up to $160 million in total, as well as royalties on any
eventual product sales of R763 and other Aurora kinase inhibitors developed
under the agreement.
    Serono will be responsible for the further development and
commercialization of R763, as well as any other product candidates arising
from Rigel's Aurora kinase inhibitor program.
    "This partnership with Rigel further strengthens our portfolio of R&D
projects in oncology, and confirms our commitment to develop specialist drugs
to tackle significant areas of unmet medical need", said Dr Tim Wells, Senior
Executive Vice President, Research and Development, Serono. "We believe that
inhibition of Aurora kinase is a promising approach to treating cancer and
Rigel has produced some of the most promising candidates we have seen. We
look forward to moving R763 into the clinic in 2006."
    "Serono has been extraordinarily proactive in building and advancing its
portfolio in oncology," said Donald G Payan, MD, Executive Vice President and
Chief Scientific Officer of Rigel. "R763 is a potent, selective inhibitor of
Aurora kinase and fits well into Serono's oncology strategy. We are confident
that Serono will be equally proactive in realizing the potential of this
product candidate."
    Aurora Kinase and Cancer
    The over-expression of Aurora kinase can cause cells to rapidly develop
an abnormal number of chromosomes. Elevated levels of Aurora kinase are
frequently associated with various human cancers, such as cancers of the
breast, bladder, colon, ovary, head and neck, and pancreas. Inhibition of
Aurora kinase arrests cell division and promotes programmed cell death
(apoptosis). Increased knowledge of Aurora kinase and its regulation may
result in future treatments for cancer.
    Rigel's lead oncology drug candidate, R763, is a highly potent inhibitor
of Aurora kinase, that has been shown to potently inhibit proliferation and
trigger apoptosis in several tumor cell lines including cervix, colon, lung,
pancreas and prostate. Rigel discovered R763 using its proprietary cell-based
PAD assays applied to tumor cell lines.
    About Serono
    Serono is a global biotechnology leader. The Company has eight
biotechnology products, Rebif(R), Gonal-f(R), Luveris(R),
Ovidrel(R)/Ovitrelle(R), Serostim(R), Saizen(R), Zorbtive(TM) and Raptiva(R).
In addition to being the world leader in reproductive health, Serono has
strong market positions in neurology, metabolism and growth and has recently
entered the psoriasis area. The Company's research programs are focused on
growing these businesses and on establishing new therapeutic areas, including
oncology. Currently, there are approximately 30 ongoing development projects.
    In 2004, Serono achieved worldwide revenues of US$2,458.1 million, and a
net income of US$494.2 million, making it the third largest biotech company
in the world. Its products are sold in over 90 countries. Bearer shares of
Serono S.A., the holding company, are traded on the virt-x (SEO) and its
American Depositary Shares are traded on the New York Stock Exchange (SRA).
    About Rigel
    Rigel is a late-stage drug development company that discovers and
develops novel, small-molecule drugs for the treatment of inflammatory
diseases, cancer and viral diseases. Our goal is to move one new product
candidate for a significant indication into the clinic each year. We have
achieved this goal since 2002. Our pioneering research focuses on
intracellular signaling pathways and related targets that are critical to
disease mechanisms. Rigel's productivity has resulted in strategic
collaborations with large pharmaceutical partners to develop and market our
product candidates. We have three product development programs in
allergy/asthma, rheumatoid arthritis and cancer.
    The agreement with Serono represents Rigel's fifth collaboration in
oncology. Rigel has signed oncology partnerships with Merck on various
ubiquitin ligase targets (signed 2004), Daiichi on a specific ubiquitin
ligase target (2002), Novartis on anti-angiogenesis targets (2000) and
Johnson & Johnson on cell cycle inhibition (1998). In addition, this is
Rigel's third major collaboration in the last 12 months.
    Serono forward-looking statements
    Some of the statements in this press release are forward looking. Such
statements are inherently subject to known and unknown risks, uncertainties
and other factors that may cause actual results, performance or achievements
of Serono S.A. and affiliates to be materially different from those expected
or anticipated in the forward-looking statements. Forward-looking statements
are based on Serono's current expectations and assumptions, which may be
affected by a number of factors, including those discussed in this press
release and more fully described in Serono's Annual Report on Form 20-F filed
with the U.S. Securities and Exchange Commission on March 16, 2005. These
factors include any failure or delay in Serono's ability to develop new
products, any failure to receive anticipated regulatory approvals, any
problems in commercializing current products as a result of competition or
other factors, our ability to obtain reimbursement coverage for our products,
the outcome of government investigations and litigation and government
regulations limiting our ability to sell our products. Serono has no
responsibility to update the forward-looking statements contained in this
press release to reflect events or circumstances occurring after the date of
this press release.
    Rigel Forward-looking statements
    This press release contains "forward-looking" statements, including
statements related to Rigel's potential receipt of milestone and royalty
payments for R763 and royalties on global sales and the potential efficacy of
product candidates. Any statements contained in this press release that are
not statements of historical fact may be deemed to be forward-looking
statements. Words such as "plans," "intends," "expects" and similar
expressions are intended to identify these forward-looking statements. There
are a number of important factors that could cause Rigel's results to differ
materially from those indicated by these forward-looking statements,
including risks associated with the timing and success of pre-clinical or
clinical development or commercialization of the affected product candidates
or research programs, as well as other risks detailed from time to time in
Rigel's SEC reports, including its Quarterly Report on Form 10-Q for the
quarter ended June 30, 2005. Rigel does not undertake any obligation to
update forward-looking statements.

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