$1.16m Funding for Cogane

Phytopharm PLC
21 January 2008


Company Contact:                             U.K. Investor Relations Contact:
Phytopharm plc                               FD
Dr Daryl Rees CEO                            David Yates
Piers Morgan CFO                             Ben Atwell
[phone]                             [phone]
www.phytopharm.com

Phytopharm receives $1.16 million funding from Michael J. Fox Foundation for
development of Cogane(TM) as a treatment for Parkinson's disease

GODMANCHESTER, Cambridgeshire, U.K. (21 January 2008) - Phytopharm plc (LSE:
PYM) ('Phytopharm' or the 'Company') announces today that it has been awarded
funding by The Michael J. Fox Foundation for Parkinson's Research (MJFF) to
support the development of Cogane(TM) as a treatment for Parkinson's disease
(PD). The $1.16 million award will be paid over a period of two years.

In pre-clinical models, Cogane(TM) reverses the changes in the area of the brain
involved in Parkinson's disease by inducing the body's own production of
proteins known as neurotrophic factors.  In particular, one of these factors
known as 'GDNF' has been shown to be particularly effective in re-growing
damaged nerves.  Since GDNF is a protein it cannot be given orally (in pill or
liquid form) because it is degraded in the stomach and intestine, and also does
not readily cross the blood-brain barrier.  GDNF can work only when injected
into or when produced inside the brain.  Direct injection of GDNF into the area
of the brain involved in Parkinson's disease has shown substantial beneficial
effects in small-scale clinical studies but requires highly complex and
difficult surgical procedures.  Cogane(TM), which can be taken orally, readily
crosses the blood-brain barrier and stimulates the release of GDNF in the brain
and therefore has the potential to overcome many of the difficulties associated
with GDNF administration.

The MJFF funding will support preclinical studies to determine the optimal
dosing requirements for Cogane(TM) and will be carried out by Dr Jonathan
Brotchie, a Senior Scientist at the Toronto Western Hospital and part of the
University Health Network (UHN) in Toronto, Canada.  Dr Brotchie is a recognised
expert in the field of Parkinson's disease and, at UHN, runs one of the world's
premier research laboratories for the identification of novel treatments,
diagnostics and cures for Parkinson's disease and related disorders.

Phytopharm is also in discussions for additional financial support from
charitable organisations to further develop Cogane(TM) as a treatment for
Parkinson's disease and also Myogane(TM) as a treatment for motor neurone
disease.

Commenting, Katie Hood, Chief Executive Officer of MJFF, said: 'MJFF is
extremely eager to see the development of an orally bioavailable product that
can stimulate production of GDNF or other neurotrophic factors in the brain. The
development of novel alternative delivery mechanisms for neurotrophic factors is
critical in realizing the potential of these proteins to restore motor function
and increase quality of life for Parkinson's disease patients.'

Commenting, Dr Daryl Rees, Chief Executive Officer of Phytopharm, said: 'We are
very pleased that The Michael J. Fox Foundation is supporting the potential of
Cogane(TM) with this award.  Cogane(TM) stimulates the brain itself to release
GDNF and therefore overcomes the difficult surgical problems associated with
direct GDNF injection into the brain.  Pre-clinical studies with Cogane(TM) have
been highly encouraging in reversing the changes in the area of the brain
involved in Parkinson's disease, providing hope that Cogane(TM) could restore
normal control of movement. The granting of this award will allow us to optimise
the oral dosing requirements for this promising therapy.'


                                     -Ends-

                                Notes to Editors



Phytopharm plc

Phytopharm is a pharmaceutical development and functional food company. Our
products are developed from medicinal plants, thereby reducing the development
risk, cost and time to market. As a virtual company, Phytopharm's model is
centred on a lean cash burn with all laboratory, manufacturing and clinical work
out-sourced to specialists, while core competencies such as strategy and
management are maintained in-house. Close collaboration with charitable
organisations enhances our interaction with Key Opinion Leaders and accelerates
our development programmes increasing their value.

The Michael J. Fox Foundation
Founded in 2000, The Michael J. Fox Foundation for Parkinson's Research is
dedicated to ensuring the development of a cure for Parkinson's disease within
this decade through an aggressively funded research agenda. The Foundation has
funded $112 million in research to date. More information on the Foundation is
available at www.michaeljfox.org.

Cogane(TM)

Cogane(TM) (PYM50028) is a novel non-peptide, orally bioavailable neurotrophic
factor inducer that readily crosses the blood brain barrier.  In pre-clinical
studies, Cogane(TM) stimulates the release of neuronal growth factors such as
GDNF, increases neurite outgrowth and protects against neuronal degeneration.
Importantly, Cogane(TM) also reverses the decrease of GDNF and reverses
dopaminergic neuronal degeneration observed in vitro and in vivo.  When
administered orally to pre-clinical models of Parkinson's disease, Cogane(TM)
reverses the loss of dopaminergic neurones.

Parkinson's disease

Parkinson's disease is a movement disorder characterised by muscle rigidity,
tremor, a slowing of physical movement (bradykinesia) and, in extreme cases, a
loss of physical movement (akinesia). The primary symptoms are the result of
altered signalling of an area of the brain, the striatum, responsible for the
control of movement.  This is caused by degeneration of dopaminergic neurones
between the striatum and the substantia nigra part of the brain leading to
insufficient formation and action of dopamine.  Parkinson's disease is therefore
termed a neurodegenerative disease.  The disease is slow in onset and the
appearance of symptoms reflects the gradual loss of dopaminergic neurones.

The prevalence of the disease is estimated to be 100 to 200 per 100,000
population (Source: Datamonitor).  In the US alone, there are estimated to be
one million patients with diagnosed Parkinson's disease with associated
healthcare costs to the economy of $25 billion (Source: Northwest Parkinson's
Foundation submission to US Congress).  Parkinson's disease can affect people of
any age, though the incidence is higher in older people.  Individuals will
experience varying combinations of the symptoms, each with differing degrees of
severity.  The cause of Parkinson's disease in the majority of cases is unknown
(idiopathic Parkinson's disease), though some cases have been found to have a
hereditary component (familial Parkinson's disease) and possible mechanisms
include oxidative damage of nerve cells coupled with loss of neurotrophic
factors.  Neurotrophic factors such as GDNF are essential for the survival and
maintenance of nerve cells and provide protection against toxic insults, however
as proteins, their utility as pharmacological treatments are limited (Source:
Michael J. Fox Foundation for Parkinson's Research).

At present, there is no cure for Parkinson's disease, but a variety of
medications provide relief from the symptoms, usually by dopamine replacement
therapy either by L-DOPA, which is converted to dopamine in the striatum, or by
dopamine agonists which act on the dopamine receptors to restore normal motor
function (control of movement).  However, both treatments cause either less
dopamine to be released by the brain or the dopamine receptors to become
progressively less sensitive, thereby eventually increasing the symptoms of the
underlying Parkinson's disease.  There is an urgent need for the development of
new approaches to this debilitating condition and non-peptide orally
bioavailable neurotrophic factor inducers which readily cross the blood brain
barrier represent an important therapeutic approach.

For further information about Phytopharm please see our website at 
http://www.phytopharm.com



Dr Jonathan Brotchie

Dr Jonathan Brotchie is Senior Scientist at the Toronto Western Hospital, which
is part of the University Health Network (UHN) in Toronto, Canada.  He is also
the Founder and Chief Executive Officer of Atuka Ltd., a contract research and
consultancy services company for the development of novel therapeutics and
diagnostics for Parkinson's disease.  Jonathan is a renowned scientist in the
field of Parkinson's disease and, at UHN, runs one of the world's premier
research laboratories for the identification of novel treatments, diagnostics
and cures for Parkinson's disease and related disorders.  In the last decade he
has published many influential scientific papers in the field of Parkinson's
disease and related disorders.  His research has been particularly associated
with pioneering the concept of non-dopaminergic treatments for Parkinson's
disease.  Jonathan is also Scientific Director of the Cure Parkinson's Trust, a
charity supporting research aimed at delivering better treatments and cures for
Parkinson's disease.


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