Interim Results

Fulcrum Pharma PLC
16 May 2001

                              Fulcrum Pharma Plc

                              Chairman's Report

Fulcrum's Half Year Financial Figures on Target and Show Increased Profit

I am pleased to report that Fulcrum has made a profit before tax of £127,000
in the first six months of its second financial year. This was achieved from a
turnover of £3,033,000 that represents a pro rata increase of 336% on the
whole of our first year of trading since September 1999.

Duration and Number of Contracts is Increasing

Our business development activities have resulted in further contracts with
clients in our target market sectors. We have also been encouraged by the
amount of repeat business obtained from customers who have recognised the
value that Fulcrum can bring to their organisation.

Domestic, European and US Clients: we have been successful in expanding the
number of clients in our home market. We now are working for Pharmagene, Shire
and Xenova. In Europe and the US, our clients include three of the top ten
global Pharma companies.

Japanese Clients: our investment in experienced Japanese staff aligned with
the Company's understanding of the local business culture is paying dividends.
In the last six months we have seen a significant number of companies
requesting our services to manage drug development in Japan. Our active
customer base now contains four of the top ten Japanese pharmaceutical
companies.

Resources Added to Japan Office to Meet Client Demand

We have relocated our Japanese Branch Office into the center of Tokyo within
easy reach of existing and potential clients. Two further highly experienced
staff have been recruited and other potential staff have been identified to
join the Company within the next six months. The business development of the
Tokyo office continues to be supported by frequent visits and operational
input by directors and staff from the UK.

Strategic Expansion of the Business

In January 2001 Fulcrum raised a further £1,250,000 through a placing of 12.5
million shares for the purposes of strategic expansion. These expansion plans
are progressing well and our target is to utilise these funds for expansion
before the end of financial year 2001/2002.

Future Prospects

We expect that profits will continue to rise based on contracts in place and
our continuing business development activities and I look forward to reporting
a positive outcome for the full year.

Professor Sir Charles F George

Chairman

15th May 2001

Consolidated Profit and Loss Account

For the Period Ended 28th February 2001
                                          Notes Six Months Ended   Period to

                                                 28th February    31st August
                                                      2001            2000

                                                   Unaudited        Audited

                                                    (£'000)         (£'000)
Turnover                                             3,033           1,804

Cost of Sales                                       (2,276)          (987)
Gross Profits                                         757             817
Selling expenses                                      (65)            (86)

Administration expenses                              (581)           (720)
Operating Profit                                      111              11
Interest receivable and similar income                 16              13
Profit on Ordinary Activities Before                  127              24
Taxation
                                       
Tax on profit on ordinary activities        3         (39)            (7)
Retained Profit for the Period                         88              17
Earnings per share (pence)                  4        0.18p           0.07p

Basic                                       4        0.18p           0.07p

Diluted
All items included in the Profit and Loss accounts relate to continuing
operations. There were no recognised gains or losses other than the profit for
the period.

Consolidated Balance Sheet

At 28th February 2001
                                          Notes  28th February    31st August
                                                      2001            2000

                                                   Unaudited        Audited

                                                      £000            £000
Fixed Assets

Tangible assets                                        61              13

Current Assets

Debtors                                              1,215            892

Cash at bank and in hand                             1,726            716
                                                     2,941           1,608

Creditors: amounts falling due within one            (942)           (849)
year
Net Current Assets                                   1,999            759
Total Assets Less Current Liabilities                2,060            772
Capital and Reserves

Called up share capital                     5         592             467
Share premium                               5        1,496            421
Merger reserve                                       (133)           (133)
Profit and loss account                               105              17
Equity shareholders' funds                           2,060            772



Consolidated Statement of Cash Flows

For the Period Ended 28th February 2001
                                                Notes Six Months to  Period to

                                                      28th February 31st August
                                                          2001         2000

                                                        Unaudited      £000

                                                          £000
Net Cash Outflow From Operating Activities                (143)        (29)
Returns on Investments and Servicing of Finance

Interest received                                          16           13
Capital Expenditure and Financial Investment

Purchase of tangible fixed assets                         (63)         (23)
Net Cash Outflow Before Management of Liquid              (190)        (39)
Resources and Financing
Financing

Issue of ordinary share capital                           1,250        1,000

Share issue costs                                         (50)         (245)
                                                          1,200         755
Increase in Cash                                          1,010         716
Reconciliation of Net Cash Flow to Movement in
Net Funds
Increase in cash                                          1,010         716

Net Funds at Start of Period                               716           -
Net Funds at End of Period                                1,726         716


1.    Financial Information

      For the 6 Months Ended 28th February 2001

      The interim results for the six months ended 28th February 2001 are
      un-audited and do not constitute statutory accounts within the meaning of
      section 240 of the Companies Act 1985. They have been drawn up using
      accounting policies and principles consistent with those applied in the
      preparation of the audited accounts for the period ended 31st August
      2000. The comparative information contained in the report for accounts
      for the year ended 31st August 2000 does not constitute the statutory
      accounts for the financial period. Those accounts have been reported on
      by the Company's Auditors, Ernst & Young, and delivered to the Registrar
      of Companies. The report of the Auditors was unqualified and did not
      contain a statement under section 237(2) or (3) of the Companies Act.
2.    Dividends

      No dividend is proposed

3.    Tax on Profit on Ordinary Activities          Six Months to   Period to

                                                    28th February  31st August
                                                         2001          2000

                                                         £000          £000
      UK Corporation tax at 30% (2000:20%)                26            7

4.    Earnings Per Share                            Six Months to   Period to

                                                    28th February  31st August
                                                         2001          2000

                                                         £000          £000
      Weighted average number of ordinary shares in   49,636,280    24,423,559
      issue
                                                      
      Diluted weighted average number of ordinary     58,404,167    29,308,123
      shares in issue

5.    Issue of Ordinary Shares

      On 16th January 2001 the Company issued 12,500,000 new ordinary shares of
      1p each for 10p per share. There was a resultant increase in share
      capital of £125,000 and an increase in share premium of £1,075,000 after
      share issue costs of £50,000.

6.    Notes to the Statement of Cash Flow


       a. Reconciliation of the operating profit to net cash outflow from
          operating activities

                                                    Six Months to   Period to

                                                    28th February  31st August
                                                         2001          2000

                                                      Unaudited      Audited

                                                         £000          £000
      Operating profit                                   111            11

      Depreciation                                        16            10

      Increase in debtors                               (324)         (892)

      Increase in creditors                               54           842

      Net cash outflow from operating activities        (143)          (29)

      b. Analysis of net funds
                                                          At            At

                                                    28th February  31st August
                                                         2001          2000

                                                         £000          £000
      Cash at bank and in hand                          1,726          716

7.    Copies of Unaudited Interim Report

      Copies of this report are being sent to shareholders and are also
      available at the registered office of Fulcrum Pharma PLC, Hamilton House,
      111 Marlowes, Hemel Hempstead, Hertfordshire HP1 1BB