Houghten Pharmaceuticals to Sell MPS Subsidiary Company Founder to Head New Entity; Remains As Houghten Board Member

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Houghten Pharmaceuticals to Sell MPS Subsidiary Company Founder to Head New Entity; Remains As Houghten Board Member
    SAN DIEG0, Nov. 14 /PRNewswire/ -- Houghten Pharmaceuticals, Inc., (HPI)
(Nasdaq: HPIP) today announced it has signed a binding letter of intent to
sell its subsidiary Multiple Peptide Systems (MPS), to a company to be formed
by HPI's founder, Richard A. Houghten, Ph.D.  MPS manufactures and markets GMP
peptides, custom peptides and peptide combinatorial libraries for the research
community.
    Under the terms of the agreement, which is expected to be completed within
90 days, HPI will receive approximately $2.25 million, $1.5 million of which
will be received in 1997.  The balancee will be received in installments paid
on the third, fourth and fifth anniversaries of the transaction.  For the nine
months ended September 30, 1996, MPS generated approximately $1.7 million in
revenues.
    Upon the completion of the transaction, which is subject to third party
approval, Dr. Houghten will resign his position as HPI's chief technical
officer, but will remain a member of the company's board of directors.  A new
chief technical officer will not be named, and HPI's internal small-molecule
combinatorial programs will continue to be headed by Michael Green, Ph.D.,
vice president of chemistry, who reports to the company's president and chief
executive officer.
    "The sale of MPS allows us to focus on pharmaceutical drug discovery, and
it also provides incremental funding which will be used to further broaden our
drug discovery technology platform," stated Robert S. Whitehead, HPI's
president and chief executive officer.  "As HPI matured, we anticipated that
Richard's role would also evolve, so we hired Michael Green earlier in the
year to lead our research efforts.  I look forward to continuing to work with
Richard on the board and through our research alliance with the Torrey Pines
Institute for Molecular Studies."
    HPI is a drug discovery company, which utilizes proprietary combinatorial
chemistry, automated synthesis and combinatorial biology technologies to
create novel small-molecule drug candidates.  The company leverages its
technology platform by entering into pharmaceutical alliances, enabling
partners to access HPI's technologies in exchange for licensing fees,
potential milestone payments and royalties, or by establishing joint-discovery
alliances with biotechnology companies.  HPI also uses its drug discovery
technologies in its internal development programs.  HP 228, the company's lead
compound, is in Phase II trials for the treatment of inflammatory and
metabolic diseases.
    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 the sale of MPS can be completed
under the expressed terms 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 projected.  HPI disclaims, however,
any intent or obligation to update these forward-looking statements.
SOURCE Houghten Pharmaceuticals