GENEVA, Switzerland and BOSTON, Massachusetts, October 27
/PRNewswire-FirstCall/ -- Serono (virt-x: SEO and NYSE: SRA) and Paratek
Pharmaceuticals , Inc. announced today that they have entered into an
agreement to discover, develop and commercialize an orally-available disease
modifying treatment for multiple sclerosis (MS).
    During the initial phase of their collaboration, Paratek and Serono will
seek to identify for clinical development novel tetracycline derivatives from
a library of non-antibiotic lead compounds discovered by Paratek chemists.
Orally administered minocycline (an antibiotic tetracycline) was reported in
a recently published clinical study to have a therapeutic benefit in the
treatment of patients with relapsing-remitting MS[1]. The favorable safety
profile of the tetracycline class is well documented, with a more than
30-year track record in the marketplace. Serono will be responsible for the
worldwide development and commercialization of compounds arising from the
collaboration. No orally administered disease-modifying drug is currently
approved for the treatment of MS.
    "This partnership with Paratek reflects our long-term commitment to
patients with multiple sclerosis", said Tim Wells, Head of Research of
Serono. "Non-antibiotic tetracycline-derived compounds represent a promising
approach for the development of orally available treatments for multiple
sclerosis. We are very pleased to be working with Paratek, which has
considerable expertise in this area and has already identified a number of
very promising compounds."
    "Serono's commitment to multiple sclerosis and their extensive research
expertise in the fields of neurology, immunology and inflammation were very
attractive to Paratek. This collaboration validates the use of our
proprietary tetracycline chemistry expertise to create improved novel
compounds specifically targeting promising new uses," said Thomas J. Bigger,
President and CEO of Paratek Pharmaceuticals.
    Under the terms of the agreement, Paratek will receive an initial cash
payment, a loan convertible into Paratek stock, research funding and
potential milestone payments related to development progress and regulatory
milestones. In addition to upfront consideration, Paratek would receive USD
38 million in milestone payments from Serono for the first product to be
successfully developed and registered in MS. Additional drugs and indications
developed would result in further payments to Paratek. Paratek will receive
undisclosed royalties on product sales should a product reach the market.
    Preclinical data on three non-antibacterial tetracycline derivatives
covered by this agreement will be presented today at Neuroscience 2004, the
Society for Neuroscience's 34th Annual Meeting in San Diego.
    About Multiple Sclerosis
    Multiple sclerosis is a chronic, inflammatory condition of the nervous
system and is the most common, non-traumatic, neurological disease in young
adults. Multiple sclerosis may affect approximately two million people
worldwide. While symptoms can vary, the most common symptoms of multiple
sclerosis include blurred vision, numbness or tingling in the limbs and
problems with strength and coordination. The relapsing forms of multiple
sclerosis are the most common.
    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 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 25, 2004. 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, 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.
    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. Currently, there
are approximately 30 ongoing development projects.
    In 2003, Serono achieved worldwide revenues of US$2,018.6 million, and a
net income of US$390.0 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 Paratek Pharmaceuticals
    Paratek Pharmaceuticals, Inc. is engaged in the discovery and
commercialization of new therapeutics that treat serious and life-threatening
diseases, with a particular focus on the growing worldwide problem of
antibiotic resistance. Paratek's lead programs are advancing novel compounds
that can circumvent or block bacterial resistance, as well as drugs that can
prevent infection by interfering with Multiple Adaptational Response (MAR)
mechanisms in bacteria. Out of these efforts, Paratek has discovered a new
class of antibiotics, the aminomethylcyclines that target the need for new
and potent antibacterials to overcome the problem of rapidly growing
bacterial resistance. The Company's lead antibiotic clinical candidate, BAY
73-7388, the first product from this class, is being developed in a
collaborative partnership with Bayer HealthCare AG for the treatment of
serious infections.
    Outside the antibacterial therapeutic area, Paratek has also established
an internal effort to exploit its novel families of compounds and their
unique mechanism of action in selected anti-inflammatory and
neurodegenerative conditions. Paratek has an active chemical synthesis effort
to produce novel and diverse small molecules, with the goal of developing
non-antibacterial products with improved activity in serious diseases based
upon a growing body of clinical and basic research supporting this approach.
    Paratek is privately held and headquartered in Boston, Massachusetts,
USA. For more information, visit Paratek's website at http://www.paratekpharm.com.
    [1] Metz LM et al. Minocycline reduces gadolinium-enhancing magnetic
resonance imaging lesions in multiple sclerosis. Annals of Neurology 2004;
55(5):756

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