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Houghten's Lead Compound May Utilize Newly Discovered Signaling Pathway

       Independent Researchers Document Melanocortin Receptor Activity

    SAN DIEGO, Jan. 17 /PRNewswire/ -- Houghten Pharmaceuticals, Inc. (HPI)
(Nasdaq: HPIP) today announced that research findings published in the
January 9, 1997 issue of Nature and the January 10, 1997 issue of Cell could
help explain the mechanism of action for HP 228, HPI's lead compound under
development for the treatment of Type II diabetes and obesity.  In the Cell
article, scientists from Millennium Pharmaceuticals Inc., Hoffman-La Roche
Inc., and Oregon Health Sciences University reported study results which
indicated that the melanocortin-4 receptor (MC-4r) may play an important role
in metabolism and obesity.  Researchers demonstrated that mice without MC-4r
developed maturity-onset obesity, as indicated by increased weight, high blood
sugar and insulin levels.  These conditions also characterize maturity-onset
diabetes in humans.
    In 1993, HPI scientists discovered a series of proprietary compounds that
can influence the activity of several melanocortin receptors, including MC-4r.
MC receptors are G protein-coupled receptors distributed in the brain and in
other parts of the body.  HPI and others have previously found therapeutic
potential of MC receptors in pain and inflammation through the regulation of
cytokines.  Recently there has been a growing body of evidence that supports
their potential role in diabetes and obesity.
    HP 228 binds to MC-4r, as well as other MC receptors, and stimulates their
activity, as shown in animal studies.  Consistent with the implications
reported in the articles, HP 228 has been shown to cause a reduction in body
weight, blood glucose, and insulin levels in animal models of diabetes and
obesity.  The results of a recently completed Phase IIa clinical study of
HP 228 in obese, Type II diabetics show no significant safety concerns in the
17 patients who received the drug.  The company plans to initiate efficacy
studies this year.
    "We are impressed by the collaborative work of this group of scientists,"
stated Robert S. Whitehead, HPI's president and chief executive officer.  "It
has certainly resulted in a better understanding of the MC-4r signaling
pathway and has further supported our belief that compounds developed to
modulate the activity of the various melanocortin receptors may have very
important therapeutic benefits."
    "At HPI, we have focused a significant amount of our research and
development activity on the pharmacological effects, both stimulatory and
inhibitory, of our internally-discovered compounds on the MC receptors,"
stated Bernard D. King, M.D., HPI's executive vice president of biological
sciences and development.  "We have concentrated in the areas of diabetes,
obesity, and inflammation and our discoveries have allowed us to be the first
group to advance a MC receptor-active compound into the clinic for evaluation
in obese diabetic patients.  These papers further support the rationale for
the use of HP 228 in this patient population."
    HPI is a drug discovery company, which utilizes combinatorial chemistry
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.
    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, 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.

    HPI's releases are on the World Wide Web at http://www.houghten.com and
PR Newswire's fax-on-demand service at 1-800-758-5804, extension 374050.


SOURCE Houghten Pharmaceuticals




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CONTACT:
Noel M. Byczek, Manager, Corporate
Communications of Houghten Pharmaceuticals, 619-455-2877