Start of phase II trial

Immupharma PLC
05 July 2006


For Immediate Release                                                5 July 2006



                                   ImmuPharma

                IPP- 201101 treatment for Lupus enters Phase II


                            - First patients dosed -


                    - Results expected before end of 2006 -


ImmuPharma PLC (LSE:IMM), the specialist drug discovery and development company,
announced today that its IPP-201101 treatment for Lupus, a chronic,
life-threatening autoimmune disease, has entered into Phase II clinical trials.
The first group of Lupus patients in the study have already been given the drug.


This European Phase II study in Lupus patients is a proof of concept, dose
ranging, safety and efficacy study. The efficacy will be assessed using
appropriate surrogate markers that are involved in the disease and biomarkers
related to mechanism of action of IPP-201101. Results from this short duration
study, expected by year end, will be of great value in preparation of pivotal
Phase III studies.


This follows on from the announcement in May of the successful completion of a
placebo-controlled phase I study involving 24 healthy volunteers to assess its
safety and tolerability. The preliminary safety report confirmed that the drug
was safe and well-tolerated.


Commenting on the announcement, Dimitri Dimitriou, Chief Executive Officer,
said: 'We are delighted to have continued our progress. Entering phase II with
our lead drug candidate for Lupus marks an exciting time for the company, making
ImmuPharma and its assets attractive for potential corporate deals with major
pharmaceutical and biotech companies.'


Richard Warr, Executive Chairman, added:

'We believe IPP-201101 has blockbuster potential but more importantly, combined
with very low marketing costs and low cost of goods, makes it an attractive
candidate for licensing. The interest we have seen to-date from big pharma
companies is encouraging.'



For further information please contact:


ImmuPharma PLC:                                         Telephone
Richard Warr, Executive Chairman:                       [phone]
Dimitri Dimitriou, Chief Executive Officer:             [phone]
Dr Robert Zimmer, President & Chief Scientific Officer: [phone]


Buchanan Communications:
Lisa Baderoon:                                          + 44 20 7466 5000
Rebecca Skye Dietrich :                                 + 44 20 7466 5000





Notes to Editors:


About ImmuPharma


ImmuPharma PLC is a drug discovery and development company headquartered in
London, UK and quoted on AIM of the London Stock Exchange (LSE:IMM). It has
research operations in France (ImmuPharma (France) SA) and Switzerland
(ImmuPharma AG). ImmuPharma is dedicated to the development of novel drugs,
largely based on peptide therapeutics, to treat serious medical conditions such
as autoimmune diseases characterised by:


o blockbuster potential in niche markets

o low promotional costs in few specialised physicians and centres and

o lower risk of drug development and lower development costs


ImmuPharma is a currently developing drug candidates for three different medical
conditions, each of which would represent a significant breakthrough in its
field. The furthest advanced drug candidate targets Lupus, a disease for which
there is currently no cure or specific treatment. The other two address moderate
to severe pain (such as that experienced by cancer sufferers and post-operative
patients), and MRSA and similar severe hospital-acquired resistant infections.


All three have significant sales potential as well as low marketing costs and a
relatively low risk of development failure. One or more have the potential to be
fast-tracked by the US Food and Drug Administration according to 'Guidance for
Industry: Fast Track Drug Development Programs - Designation, Development and
Application Review' issued July 2004 and could therefore obtain their market
authorization by 2010.


Key to the potential success of ImmuPharma is its unique collaborative agreement
with Centre National de la Recherche Scientifique, France's scientific research
institution. This agreement grants ImmuPharma worldwide exclusive rights to
exploit certain key discoveries.


In addition to its three leading drug candidates, ImmuPharma has a drug
development pipeline using its rights to a virtual chemical library of hundreds
of thousands of molecules as well as an innovative technology for converting
peptides to drug candidates.


ImmuPharma has the option to commercialise its assets itself or to license them
to other pharmaceutical companies at an earlier stage.




The products


Treatment of Lupus (IPP-201101)


Lupus is a chronic, life-threatening autoimmune disease where the immune system
attacks healthy cells. There is currently no cure and existing medications only
treat the symptoms. By selectively modulating the aberrant T-cells in Lupus,
ImmuPharma's drug candidate has the potential to produce remission of the
disease in a substantial proportion of patients.


Based on independent forecasts, the value of ImmuPharma's Lupus drug is
estimated to be 'substantial' with peak annual sales forecast to generate in
excess of $4 billion.


Severe pain relief (IPP-102199)


ImmuPharma is developing a compound for relieving moderate to severe pain, such
as experienced by cancer sufferers and post-surgical patients. Most existing
treatments are derived from the opiate morphine and have serious side effects
associated with a morphine-like mechanism of action. ImmuPharma's new approach
is based on met-enkephalin, one of the body's internal analgesics. IPP-102199 is
being developed to have major advantages over morphine such as longer pain
relief duration and reduced side effects. The market for chronic opioids in the
US currently exceeds $3.5 billion and is growing by more than 10 to 20 per cent
a year.


Antibiotic for MRSA and similar highly resistant infections (IPP-203101)


This is a novel antibiotic to counter the effects of MRSA and other severe
hospital-acquired, resistant infections which affect some two million people in
the US, according to the US Centers for Disease Control and Prevention.
ImmuPharma's drug candidate is targeted at disrupting the membrane potential of
MRSA and other bacterial strains. It is hoped this novel approach will reduce
their potential to become resistant.


Key management


Richard Warr, MA, Executive Chairman, has 20 years experience in investment
banking and the capital markets. He was previously a director of ABN Amro;
director and head of European sales and marketing at Credit Lyonnais; executive
director at Dresdner Kleinwort Benson Securities Ltd; and head of European
equity distribution at Swiss Bank Corporation. He has extensive experience in
corporate and governmental equity capital market transactions.


Dimitri F Dimitriou, MSc, Chief Executive Officer, has over 20 years experience
in the pharmaceutical and biotech industry. He was senior director, worldwide
business development, at GlaxoSmithKline, where his responsibilities included
licensing deals, alliances and collaborations on a worldwide basis.


Dr Robert Zimmer, MD, PhD, Chief Scientific Officer and head of R&D, began his
career with Roche in Basle, where he was responsible for numerous Phase I
studies. In 1990 he joined JAGO in Basle and, on its acquisition by SkyePharma,
became director and head of research and development at SkyePharma. His
expertise includes managerial experience in multifunctional research and
development and the assessment of technologies with multi-national
pharmaceutical companies.


Paddy Walker-Taylor, FCA, MCT Chief Financial Officer, was previously finance
director of Sir Robert McAlpine Ltd. He was involved in the AIM float of ISG
Group, in which McAlpine had a minority shareholding. Previously he had held a
number of key financial positions including finance director of Woolworths plc
and treasurer of Marks & Spencer.


Douglas Paterson, MA, FCA, senior Non-Executive Director, has been a chartered
accountant for 37 years and was a senior audit partner at Coopers & Lybrand (now
PricewaterhouseCoopers) for 22 years. He currently holds a number of
non-executive directorships, including Close Brothers Group plc and Goldman
Sachs International Bank.


Anthony Johnson, B Pharm, MSc, Non-Executive Director, has over 30 years
experience in the pharmaceutical industry, focused on the scientific aspects of
deal making, support during competitive analysis, technical due diligence and
input in development strategy. He was formerly senior director of scientific
licensing at SmithKline Beecham (now GlaxoSmithKline).



Collaboration with Centre National de la Recherche Scientifique (CNRS)


ImmuPharma has important collaboration arrangements with Centre National de la
Recherche Scientifique, France's scientific research institution, including a
research collaboration agreement relating to the therapeutic use of peptides and
peptide derivatives. ImmuPharma has been granted the worldwide exclusive rights
to exploit all discoveries made under this agreement. ImmuPharma will co-own the
relevant intellectual property with CNRS which will share in the revenue
generated by ImmuPharma from exploiting CNRS' licensed and co-owned rights.




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