Trading Update

Fulcrum Pharma PLC
06 August 2004


For immediate release                                            6 August 2004



                                  Fulcrum Pharma Plc

                                   Trading update


Fulcrum Pharma plc (LSE: FUL), the independent drug development company that
offers virtual drug development and strategic outsourcing services to the
pharmaceutical and biotechnology industries, today announces an update on
trading covering the first eleven months of its financial year, which ends 31
August 2004.


In common with other service businesses in the sector, Fulcrum is operating
under challenging market conditions in the EU and the outcome for the current
year to August 2004 is expected to be significantly below market expectations.


In the EU, Fulcrum's business operations have experienced a number of issues.
These include a reduction in the scope of a major contract with an unnamed top
tier pharmaceutical company, the cancellation of an expected large new contract,
and the pricing pressures related to the current weakness in the US dollar. The
poor funding climate in the EU is causing biotech companies to conserve their
cash and the weak dollar is resulting in large pharmaceutical companies reducing
or delaying decisions on outsourcing and spending.


Meanwhile other areas of Fulcrum's business are performing particularly well.
The US operation continues to grow ahead of expectations and is profitable in
only its second year. The Japanese subsidiary is on track for a small profit at
the year-end in August.  Cross sales from Japan to the US and the EU continue to
increase and the partnership strategy is thriving.


In order to address the issues that the Company is experiencing, Fulcrum will
leverage its position by concentrating investment in the US where growth is
fastest and continue to drive the cross sales out of Japan to the US and EU.
This strategy will capitalise on the deeper pipelines and more favourable market
conditions in the US and Japan.  Meanwhile, in the EU the growth strategy will
be adjusted in line with the pace of activity.


The Board remains confident that the Company's business model is effective as it
creates value for its collaborators and partners.  From a strong cash position,
the Board looks forward to signing new contracts and agreements and
strengthening the business performance in the future as market conditions
improve and R&D programmes progress.


Dr Jon Court, CEO of Fulcrum Pharma, said:

'Fundamentally our business is sound. There has been a significant increase in
sales across the group with the US performing ahead of expectations and Japan
continuing to recover well. While the performance of the EU subsidiary has been
lower than forecast, sales are 70% higher than last year. We continue to execute
our approach to new business development and new contracts are still being
signed. In addition, our partnership strategy is progressing well with Addex
Pharmaceuticals and BTG and we are hopeful of signing additional partnerships in
the future.'

For Further information, please contact


Fulcrum Pharma PLC                                     Tel: [phone]
Jon Court, CEO

Buchanan Communications                                Tel: [phone]
Mary-Jane Johnson



Notes to Editors:


About Fulcrum Pharma

Fulcrum Pharma plc is an independent, drug development company that is the first
to offer global virtual drug development and strategic outsourcing services to
the pharmaceutical industry.  The Company has expertise in the design, execution
and delivery of drug development programmes and relies on state of the art
information technology and infrastructure in the supply of its services.


Through Fulcrum's services to its clients, the Directors believe that there is
the capacity to deliver products faster and more efficiently to the global
pharmaceutical market. Fulcrum does this by using its skills in the design of
drug programmes that deliver the necessary information for decision-making and
product registration. In so doing, Fulcrum works closely with its clients to
meet their strategic R&D goals.


Fulcrum Pharma is listed on the Alternative Investment Market of the London
Stock Exchange having successfully floated in March 2000.






                      This information is provided by RNS
            The company news service from the London Stock Exchange