Research Update

Phytopharm PLC 17 May 2007 Company Contact: U.K. Investor Relations Contact: Phytopharm plc FD Dr Daryl Rees CEO David Yates Mr Piers Morgan CFO Ben Atwell +44 1480 437 697 +44 207 831 3113 www.phytopharm.com Commencement of Phase Ib clinical study for MyoganeTM GODMANCHESTER, Cambridgeshire, U.K. (17 May 2007) - Phytopharm plc (LSE: PYM) (' Phytopharm' or the 'Company') announces today that it has been granted clearance from the Medicines and Healthcare Products Regulatory Agency (MHRA) and received Research Ethics Committee (REC) approval to commence a Phase Ib healthy volunteer clinical study for MyoganeTM in the UK. MyoganeTM is a novel orally active neurotrophic factor inducer being developed for amyotrophic lateral sclerosis (ALS, also known as Lou Gehrig's disease), the most prevalent form of motor neurone disease. This residential healthy volunteer clinical study utilises a randomised, double blind, placebo-controlled design with a new liquid formulation of MyoganeTM. ALS patients have difficulty in swallowing and this new formulation aims to provide optimal ease of use for the patient. The study will evaluate the safety, tolerability and pharmacokinetic profile of single oral doses escalated across groups of healthy adult subjects. It is expected that the results will be reported during the third quarter of 2007. Phytopharm has already successfully completed a Phase Ia healthy volunteer clinical study with MyoganeTM formulated as a capsule which demonstrated an excellent overall safety profile for the product. The study was conducted under an investigational new drug (IND) with the United States Food and Drug Administration (FDA) who also granted Orphan Drug and Fast Track designation to MyoganeTM for the treatment of ALS. ALS is a fatal neurodegenerative disease characterised by progressive degeneration of both upper and lower motor neurones which lead to severe muscle weakness and wasting followed by paralysis. Approximately 350,000 patients suffer from ALS world wide, of which 50% die within 18 months of diagnosis. This condition has a high unmet medical need (source Datamonitor). Commenting on today's announcement, Dr Daryl Rees, Chief Executive Officer of Phytopharm, said: 'There is an urgent need for new therapeutic approaches to motor neurone diseases such as ALS. Pre-clinical studies with MyoganeTM, our novel orally bioavailable neurotrophic factor inducer, have been highly encouraging in both quality of life and survival parameters. We are pleased to progress our new liquid formulation into the clinic and anticipate requesting EU orphan medicinal product status during the fourth quarter of 2007 as this will enable the most efficient and rapid clinical progress of MyoganeTM for this devastating condition.' -Ends- Notes to Editors Phytopharm plc Phytopharm is a pharmaceutical development and functional food company whose product leads are generated from medicinal plants. The Company's strategy is to develop these products through 'proof of principle' clinical testing, and then secure partners for late stage development, sales and marketing. Laboratory, manufacturing and clinical work is outsourced to selected specialists, operating under expert in-house management. This operational structure allows access to the best external research facilities whilst maintaining low fixed overheads and a lower development cost structure. MyoganeTM MyoganeTM is a novel non-peptide, orally bioavailable neurotrophic factor inducer that readily crosses the blood brain barrier. In pre-clinical studies, MyoganeTM stimulates the release of neuronal growth factors, increases neurite outgrowth and protects against oxidative and glutamate neuronal damage. Myogane TM also reverses the decrease of neuronal growth factors, reverses oxidative and glutamate damage and reverses neuronal degeneration observed in motor neurones in vitro. When administered orally to pre-clinical models of ALS, MyoganeTM delays the loss of muscle strength and extends survival time. The neuroprotective and neurotrophic actions of MyoganeTM suggest potential beneficial effects in other orphan neurodegenerative diseases including Friedrich's ataxia, progressive supranuclear palsy, Huntington's disease and multiple system atrophy as well as several niche market diseases. Motor Neurone Disease Amyotrophic lateral sclerosis (ALS, also known as Lou Gehrig's disease) is the most prevalent form of motor neurone disease which generally strikes people between 40 and 60 years of age. It is characterised by progressive loss of both lower (spinal cord and brainstem) and upper (cerebral cortex) motor neurones, which leads to severe muscle weakness and wasting, followed by paralysis and death, generally caused by respiratory failure. ALS is considered an orphan disease (i.e. the condition is rare) as it affects fewer than 200,000 in the US (US definition) and affects no more than 5 in 10,000 people (EU definition). Approximately 350,000 patients suffer from ALS world wide, of which 50% die within 18 months of diagnosis. In recent years, there is evidence that the incidence of motor neurone disease is increasing although this may be due to more accurate testing and diagnosis (source Motor Neurone Disease Association). The financial cost to families of patients is exceedingly high, and it is estimated that in the advanced stage, care can cost an average of $200,000 per year (source: International Alliance of ALS Associations). The precise causes of motor neurone degeneration in ALS patients remain unknown. Approximately 5-10% of cases appear to be of familial origin and possible mechanisms include loss of neurotrophic factors coupled with oxidative and glutamate mediated damage of nerve cells. Neurotrophic factors 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. Riluzole (RilutekTM), a glutamate modulator, is the only agent indicated for the treatment of this condition and increases average survival by only a few months (source Datamonitor). There is an urgent need for the development of new approaches to this devastating condition and non-peptide orally bioavailable neurotrophic factor inducers that 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 This information is provided by RNS The company news service from the London Stock Exchange AXSKFSEXEFE

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