Preliminary Results

Fulcrum Pharma PLC
13 October 2000

                              Fulcrum Pharma PLC

           Preliminary Results for the Period Ended 31 August 2000

Fulcrum Pharma PLC (LSE: FUL), the independent drug development company, today
announces its preliminary results for the period ended 31 August 2000 and its
first set of results as a publicly traded company.

Highlights:


  * Successful flotation on the Alternative Investment Market of the London
    Stock Exchange

  * Development deal signed with Xenova

  * An increasing number of short, medium and long-term contracts won and
    continue to be negotiated with a range of international customers

  * Office in Japan opened

  * Internal expectations exceeded and profit achieved in first period of
    trading

  * Turnover of £1,804,000 exceeding internal forecasts

  * Profitable - PBT of £24,000 achieved

Commenting on the results, Professor Sir Charles George, Chairman of Fulcrum
Pharma, said:


    'In our first year of operation we have worked with a broad range of
    customers, entered profit ahead of internal expectations and achieved a
    turnover of £1,804,000. This financial performance has enabled us to take
    on further staff, expand our Japanese Office and update our information
    systems while still retaining sufficient working capital for the immediate
    future. This is a successful start to Fulcrum and a smooth transition by
    the management team from Fulcrum's predecessor company, Protodigm Ltd, a
    wholly owned subsidiary of the large pharmaceutical company Roche.'



For further information, please contact :

Fulcrum Pharma PLC

Jon Court, Chief Executive                   0700 392 1103

Neil Oughton, Business Development Director  0700 392 1105



Buchanan Communications

Nicola How / Louise Bolton                  0207 466 5000





                              Fulcrum Pharma PLC

           Preliminary Results for the Period Ended 31 August 2000

OVERVIEW

In our first year of operation we have worked with a broad range of customers,
entered profit ahead of internal expectations and achieved a turnover of £
1,804,000. This financial performance has enabled us to take on further staff,
expand our Japanese Office and update our information systems while still
retaining sufficient working capital for the immediate future. This is a
successful start to Fulcrum and a smooth transition by the management team
from Fulcrum's predecessor company, Protodigm Ltd, a wholly owned subsidiary
of the large pharmaceutical company Roche.

AIM Flotation

The Placing and Admission to AIM in March 2000 raised funds of £740,000, after
expenses, allowing the Group to pursue its strategy for growing the business
and to raise Fulcrum's profile in the UK and overseas, especially Japan. Your
Board has been able to use the Company's quoted shares to motivate its
employees through equity participation, which has also enabled the Company to
attract and retain high quality and committed staff.

Operational Review

Successful contracts are based on Fulcrum's key products and services, which
are:


  * Design and planning of drug development programmes and plans:


        Fulcrum's management uses its skills to design and produce complex
        drug development plans which can last for between one and six years
        and involve total costs of up to £150 million.


  * Implementation and management of programmes and plans through
    tailor-made teams:


        Drug development programmes are executed and co-ordinated by Fulcrum
        on behalf of its client through tailor-made teams, made up of various
        service suppliers. Fulcrum brings together, leads and manages people,
        processes and expertise to enable its clients to save time, reduce
        cost and increase productivity. Fulcrum's processes are designed to
        ensure the drug development programmes meet the extensive regulatory
        requirements needed to bring new medicines to market.


  * Assembly and assessment of product information and knowledge for
    registration and marketing:


        Fulcrum uses knowledge management processes and tools (including
        internet and intranet based systems) to manage the huge quantities of
        information, generated during development that is required for product
        registration.



As a result of these products and services, the Management Team has won
significant contracts. It has been encouraging that Fulcrum's services have
proven attractive to a broad spectrum of customers. These have included
emerging, medium and large pharmaceutical companies from Europe, US and Japan.
These contracts represent potential annual turnovers in the range of £50,000
to £2,000,000 per contract. It is the flexibility of Fulcrum's virtual
business model that enables us to tailor our services to meet our clients'
needs.

A significant contract has recently been signed with the UK based
pharmaceutical company, Xenova plc. Fulcrum will provide the infrastructure
and expertise to develop a novel anticancer agent on behalf of Xenova. (See
separate announcement released today.)

Other clients have recognised that our services can add value to their
businesses in the following ways:

 1. Reduce dependence on internal fixed resources and therefore reduce
    overheads;
 2. Gain access to our global development skills immediately and as needed;
 3. Increase productivity by reducing the cost and time to 'go/no go' decisions
    relating to new products; and
 4. Shorten overall development time, reduce time to market and therefore
    potentially extend the period of market exclusivity.



Global Operations

Through marketing of the key services, the Company as well as winning
contracts during the year, is continually bidding on new work. Expansion of
our operation in Tokyo has enhanced Fulcrum's Global Drug Development Services
and has proven attractive to customers both within and outside of Japan. With
this in mind, the Company employed a representative in Tokyo to develop the
Company's presence in Japan and subsequently has registered a Japanese Branch
Office, which became operational from September 2000. This is an area where we
see future growth and sales and is an important part of Fulcrum's marketing to
new and existing clients.

Fulcrum's services and products enable Japanese pharmaceutical companies to
get their products into the global market-place earlier. Changes in the
Japanese law governing clinical development have had the effect of creating
new opportunities for Fulcrum to offer specialist development services to
Japanese companies inside and outside Japan.



Resources and Operating Capital

In the year the Company raised £740,000 (after expenses) by way of placing of
33,333,333 Ordinary 1p Shares at 3p each. The company remains in a healthy
cash position with a net balance at 31 August 2000 of £716,000.

The management team has been expanded in the UK and in Japan to service
existing clients, market the Groups services and to continue increasing the
profile of the Group. Options under the Company's approved and unapproved
share option schemes have been and will be granted to aid recruitment and
retention of further high quality staff. Since the start of operations in
September 1999 the company has recruited four new employees, two in Japan and
two in the UK. All four of the new employees bring a wealth of experience in
drug development.

Future Prospects

The current year has started well with growing interest in our services from
most sectors in the market and your Board views the future with confidence.
Through our business development activities we will continue to expand our
client base in Europe, US and Japan.

We expect that revenues and profit will be enhanced in the forthcoming period
based on contracts already in place, on bids submitted and from our global
business development activities. Plans are in place to expand our customer
network in the US, Europe and Japan.

The Board would like to take this opportunity to express its appreciation of
the support and commitment of all Fulcrum staff. It is due to their hard work
and dedication that the significant progress and success achieved to date has
been made possible.

Professor Sir C F George                         Dr J P Court

Chairman                                   Chief Executive Officer

13 October 2000



Consolidated profit and loss account

For the period ended 31 August 2000


                                                Notes  Period to 31 August 2000

                                                                           £000
Turnover                                            2                     1,804
Cost of Sales                                                             (987)

                                                              -----------------
Gross Profit                                                                817
Selling Expenses                                                           (86)
Administration Expenses                                                   (720)

                                                              -----------------
Operating Profit                                                             11
Interest receivable and similar income                                       13

                                                              -----------------
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION                                24
Tax on profit on ordinary activities                                        (7)

                                                               ----------------
RETAINED PROFIT FOR THE PERIOD                                               17

                                                               ----------------
Earnings per share (pence)
Basic                                               4                     0.07p
Diluted                                             4                     0.07p



  STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

There were no recognised gains and losses other than the profit for the period
ended 31 August 2000 of £17,000.



 Balance sheets

at 31 August 2000


                                               Notes     Group          Company
                                                          £000             £000
FIXED ASSETS
Tangible assets                                             13                -
Investment in subsidiary                                     -              133

                                                     ---------        ---------
                                                            13              133
CURRENT ASSETS
Debtors                                                    892              713
Cash at bank and in hand                                   716               18

                                                      --------         --------
                                                         1,608              731

CREDITORS: amounts falling due within one year           (849)             (10)

NET CURRENT ASSETS                                         759              721

TOTAL ASSETS LESS CURRENT LIABILITIES                      772              854

CAPITAL AND RESERVES
Called up share capital                            5       467              467
Share premium                                      5       421              421
Merger reserve                                     5     (133)                -
Profit and loss account                            5        17             (34)

EQUITY SHAREHOLDERS' FUNDS                                 772              854



Consolidated statement of cash flows

For the period ended 31 August 2000
                                                               Notes       2000

                                                                           £000
NET CASH OUTFLOW FROM OPERATING ACTIVITIES                         6       (29)

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received                                                            13

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Purchase of tangible fixed assets                                          (23)

                                                                     ----------
NET CASH OUTFLOW BEFORE MANAGEMENT OF LIQUID RESOURCES AND                 (39)
FINANCING

FINANCING
Issue of ordinary share capital                                           1,000
Share issue costs                                                         (245)

                                                                     ----------
                                                                            755

                                                                     ----------
INCREASE IN CASH                                                            716

                                                                     ----------



RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS


                                                      Notes                2000

                                                                           £000
Increase in cash                                                            716
Net debt at incorporation                                                     -

                                                                     ----------
NET FUNDS AT 31 AUGUST 2000                               7                 716

                                                                     ----------



Notes to the accounts at 31 August 2000

1.     BASIS OF PREPARATION

On 7 March 2000 the Company acquired 100% of the ordinary shares (and all of
the voting rights) of Fulcrum Pharma Developments Limited in an exchange of
shares, which resulted in the former shareholders of Fulcrum Pharma
Developments Limited holding the same proportion of the issued share capital
of Fulcrum Pharma PLC as they had held in Fulcrum Pharma Developments Limited.
In connection with the share exchanges the company issued 13,333,332 ordinary
shares of 1p each with a nominal value of £133,333 credited as fully paid in
exchange for 375 ordinary shares of £1 each in Fulcrum Pharma Developments
Limited.

The group accounts consolidate the results of Fulcrum Pharma PLC and its
subsidiary Fulcrum Pharma Developments Limited drawn up to 31 August 2000. The
accounts, which were prepared using merger accounting principles, present the
results of the group as if Fulcrum Pharma PLC had been in existence and owned
Fulcrum Pharma Developments Limited throughout the period under review.

2.     SEGMENTAL INFORMATION

Turnover, which is stated net of value added tax, represents amounts invoiced
to third parties. Analysis of turnover by geographical market is given below:

                                                       Period to 31 August 2000

                                                                           £000
United Kingdom                                                              312
Rest of Europe                                                              367
United States of America                                                    824
Japan                                                                       301

                                                                     ----------
                                                                          1,804

                                                                     ----------



3.     DIVIDEND

The Directors do not recommend the payment of a dividend.

4.     EARNINGS PER SHARE

The basic earnings per ordinary share is based upon the Group's profit for the
period of £17,000 divided by the weighted average number of ordinary shares in
issue, calculated using merger accounting principles, of 24,423,559. The
diluted earnings per share are the same as the basic earnings per share the
effect from options issued during the period is non-dilutive.


        5.     RECONCILIATION OF MOVEMENTS ON RESERVES AND SHAREHOLDERS' FUNDS

Group                      Called up        Share   Merger    Profit and
                       share capital      premium  reserve  loss account
                                          account
                                £000                  £000          £000
                                             £000                        Total

                                                                          £000
At incorporation                   -            -        -             -     -
Issue of share capital           467          666        -             - 1,133
Admission costs                    -        (245)        -             - (245)
Profit for the period              -            -        -            17    17
Equity elimination                 -            -    (133)             - (133)
upon consolidation
                          ----------   ---------- ----------    ----------
---------
At 31 August 2000                467          421    (133)            17   772




        6.     RECONCILIATION OF THE OPERATING PROFIT TO NET CASH OUTFLOW FROM
        OPERATING ACTIVITIES

                                                                           2000

                                                                           £000
Operating Profit                                                             11
Depreciation                                                                 10
Increase in debtors                                                       (892)
Increase in creditors                                                       842

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

                                                                     ----------




7.     ANALYSIS OF NET FUNDS
                                                              At 31 August 2000

                                                                           £000
Cash at bank and in hand                                                    716

                                                                     ----------



8.     ANNOUNCEMENT BASED ON DRAFT ACCOUNTS

 The financial information given above does not constitute the company's
statutory accounts within the meaning of section 240 of the Companies Act
1985. The financial information for the period ended 31 August 2000 has been
audited and prepared in accordance with applicable accounting standards.

 The financial statements for the period ended 31 August 2000 were approved by
the board on 13 October 2000 and will be posted to shareholders on 20 October
2000.

Copies will be available from that date from the Company Secretary at the
registered office of the company, Hamilton House, 111 Marlowes, Road, Hemel
Hempstead, Herts HP1 1BB.