Alliance Underscores Potential of Successfully Combining Combinatorial
                Expertise and Targeted Drug-Discovery Research

    SAN DIEGO, Sept. 26 /PRNewswire/ -- Houghten Pharmaceuticals, Inc. (HPI)
(Nasdaq: HPIP) today announced an agreement with Magainin Pharmaceuticals
(Nasdaq: MAGN) in which HPI will receive shares of Magainin common stock in
exchange for a royalty interest in Magainin's lead compound, MSI-78.  This
action illustrates HPI's strategy to leverage its combinatorial chemistry and
other molecular diversity technologies to develop therapeutic compounds with
partners for the commercial benefit of all parties.
    MSI-78 is now in Phase III clinical testing for the treatment of infection
in diabetic foot ulcers.  An HPI subsidiary and The Scripps Research Institute
originally entered into an agreement to license magainin-like compounds to
Magainin in exchange for royalties on sales of successfully commercialized
compounds.  MSI-78 was covered by this license.  Under the terms of today's
agreement, HPI and Scripps will equally split 550,000 shares of Magainin
stock, in lieu of the potential receipt of royalties from MSI-78.  The license
and royalty arrangement will remain intact for other compounds covered by the
original agreement.
    "We are excited about our successful collaboration with Magainin in the
discovery of this potentially important therapeutic," stated Robert S.
Whitehead, HPI's president and chief executive officer.  This illustrates the
mutual benefit of forming alliances with young biotechnology companies and
demonstrates the potential value we can add to the discovery efforts of our
corporate partners.  We currently have external research agreements with 10
companies including, Novo Nordisk, Bristol-Myers Squibb, Procter & Gamble and
Cadus Pharmaceuticals."
    HPI develops and utilizes combinatorial chemistry and other molecular
diversity technologies to pursue the discovery of novel, small-molecule drug
therapies.  Combinatorial chemistry is a technology for the synthesis,
identification and optimization of lead compounds that can significantly
shorten the time required for, and reduce the costs associated with, drug
discovery.  The company uses its molecular diversity technologies for internal
discovery programs, as well as in collaboration with pharmaceutical companies
in exchange for fees and potential milestone payments and royalties.  In
addition, HPI develops joint-discovery alliances with biotechnology firms and
retains certain product ownership rights.
    Except for the historical information contained herein, the matters
discussed in the news release are forward-looking statements that involve
risks and uncertainties, including whether any proposed product can be
successfully formulated, scaled-up, developed and commercialized, whether
regulatory approvals can be obtained, the impact of competitive products and
pricing, whether any corporate collaborations will be successful, and other
risks detailed from time to time in HPI's Securities and Exchange Commission
(SEC) filings.  These forward-looking statements represent HPI's judgment as
of the date of this release.  Actual results may differ materially from those
predicted.  HPI disclaims, however, any intent or obligation to update these
forward-looking statements.
    HPI's releases are on the World Wide Web at http://www.prnewswire.com and
PR Newswire's fax-on-demand at 1-800-758-5804, extension 374050.

Link to this page: