Serono and Novimmune to collaborate in development of two novel treatments for autoimmune diseases

Serono (virt-x: SEO and NYSE: SRA) and NovImmune (private) have signed an exclusive agreement under which NovImmune has granted Serono exclusive worldwide rights to develop and commercialize two of NovImmune's fully human monoclonal antibodies, NI-0401 and NI-0501, which may have therapeutic potential in a broad range of autoimmune diseases:

# NI-0401 targets the CD3 antigen, a key regulator in the activation of T-cells. The proliferation of activated T-cells is a hallmark of many autoimmune diseases, including insulin-dependent diabetes, Crohn's disease, multiple sclerosis and rheumatoid arthritis, and of organ transplant rejection.
# NI-0501 targets interferon-gamma, a key cytokine involved in the regulation of immune and inflammatory responses. Interferon-gamma is overexpressed in autoimmune diseases such as systemic lupus erythematosus, Crohn's disease and several forms of vasculitis.

NI-0401 and NI-0501 are currently in preclinical development. NI-0401 is expected to enter clinical trials later this year.

Under the terms of the agreement, NovImmune is responsible for the development of the two products until the completion of Phase IIa clinical trials, after which Serono will take over further development. Serono will pay a license fee of $5 million for the two products, make a CHF 7.5 million equity investment in NovImmune, and lend NovImmune up to CHF 7.5 million, convertible into shares of NovImmune on certain conditions or repayable with accrued interest at maturity. Based on the successful development and initial registration of the products, NovImmune may receive up to $105 million in future milestone payments. In addition, NovImmune may receive further milestone payments based on approval of the products for additional indications, and will also be entitled to receive undisclosed royalties based on eventual net sales of the products.

"NovImmune is proud of this alliance as it represents a recognition of the quality and clinical relevance of these products. Our products can profit from Serono's expertise in development and marketing across multiple indications to maximize their full potential" declared Jack Barbut, NovImmune's CEO. "More specifically, NI-0401, which should enter the clinic later this year, addresses a basic mechanism of the immune response and could be efficacious in treating numerous different immune related diseases."

"NovImmune has used state-of-the-art technologies to design antibodies with very distinctive properties," said Tim Wells, Head of Research at Serono. "We expect that NI-0401 and NI-0501 will have significant advantages over precedent molecules and that those advantages will translate into greater therapeutic potential for the treatment of chronic autoimmune disorders."

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Contacts:

NovImmune SA
Tel: +41 22 839 71 41
Fax: +41 22 839 71 42
http://www.novimmune.com

Serono
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Fax: +41 22 739 30 85
http://www.serono.com

Media Relations, USA
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http://www.seronousa.com

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