NeuroSearch's associated company NsGene A/S starts Phase Ib clinical study with NsG0202 for the treatment of Alzheimer's disease

Investor News                                                                   


NeuroSearch's associated company NsGene A/S starts Phase Ib clinical study with 
NsG0202 for the treatment of Alzheimer's disease                                

NsGene A/S, 25% owned by NeuroSearch, has received final approval for the       
initiation of a Phase Ib clinical study with its drug candidate NsG0202 for the 
treatment of Alzheimer's disease. The Phase Ib study will be carried out at the 
Karolinska University Hospital in Stockholm, Sweden and the first patients will 
be treated in the beginning of 2008. The study is expected to run for one year. 

NsG0202 consists of an implantable biodelivery device containing encapsulated   
living cells (EC) that secrete nerve growth factor (NGF). NGF has shown         
neuroprotective and regenerative effects when delivered to relevant areas of the
brain, and NsG0202 is aimed at treating the progressive dementia associated with
Alzheimer's disease.                                                            

NsG0202 is the first in NsGene's pipeline of disease-modifying products expected
to enter into clinical trials for neurological disorders over the next two      
years. All these products are based on NsGene's strong and broadly patented EC  
biodelivery platform. This advanced biodelivery technique represents a novel    
treatment method, and the EC biodelivery products are aimed not only at         
alleviating disease symptoms, but at restoring brain functions. The technique   
also offers great safety advantages over direct gene therapy approaches, as well
as technical and functional advantages over pump technologies. Thereby, NsGene's
novel approach may constitute a breakthrough in the treatment of severe diseases
of the central nervous system, such as Alzheimer's disease, Parkinson's disease,
and other severe neurological diseases like epilepsy.                           

Teit E. Johansen, President & CEO of NsGene, commented: “This landmark          
achievement brings NsGene a step closer to a breakthrough for a treatment of    
this devastating disease (Alzheimer's) and, by entering the clinic, the company 
has risen to the next level of corporate development including partnering       
opportunities for a maximal exploitation of our NsG0202 product.”               

For further information, please see attached Press release from NsGene A/S      


Contact persons: 
                                                               
Flemming Pedersen, CEO, telephone: +45 4460 8214 or +45 2148 0118 
              
Hanne Leth Hillman, Vice President, Director of Investor Relations & Corporate  
Communications, telephone: +45 4017 5103                                        


NeuroSearch (NEUR) is a Scandinavian biopharmaceutical company listed on the OMX
Nordic Exchange Copenhagen A/S. The company's core business covers the          
development of novel drugs, based on a broad and well-established drug discovery
platform focusing on ion channels and CNS disorders. A substantial part of the  
activities are partner financed through a broad alliance with GlaxoSmithKline   
(GSK) and collaborations with among others Abbott and Astellas. The drug        
pipeline comprises 11 clinical (Phase I-III) development programmes: ACR16 in   
Huntington's disease (Phase III in preparation), tesofensine in obesity (Phase  
III in preparation), NS2359 in depression (Phase II) and ADHD (Phase II) in     
partnership with GSK, NS1209 in epilepsy and pain (Phase II), ABT-894 in ADHD   
(Phase II) and pain (Phase II) in partnership with Abbott, ACR16 in             
schizophrenia (Phase I) in partnership with Astellas, ACR325 in bipolar disorder
and Parkinson's disease (Phase I) and ABT-107 as well as ABT-560 for the        
treatment of various CNS diseases - both (Phase I) in collaboration with Abbott 
as well as NSD-644 (Phase I) in collaboration with GSK. In addition, NeuroSearch
has a broad portfolio of preclinical drug candidates and holds equity interests 
in several biotech companies.                                                   



Copenhagen, Denmark, December 12, 2007                                          

                     PRESS RELEASE - FOR IMMEDIATE RELEASE                      

NsGene A/S begins Phase Ib clinical trial with NsG0202 for the treatment of     
Alzheimer's disease                                                             

NsGene A/S announced today that its Clinical Trial Application (CTA) to start a 
phase Ib study of NsG0202 for Alzheimer's disease (AD) has been approved by the 
Swedish Medical Products Agency (MPA).                                          

The NsG0202 product for AD is the first in a pipeline of disease modifying      
products based on NsGene's EC biodelivery platform expected to enter clinical   
trials for neurological disorders over the next two years. The advanced implant 
product represents a novel treatment method aimed at restoring brain function   
and not only at alleviating symptoms. Thereby, it may constitute a breakthrough 
in the treatment of severe diseases of the central nervous system, such as AD,  
Parkinson's disease, and epilepsy.                                              

NsG0202 consists of an implantable encapsulated cell (EC) biodelivery device    
that secretes nerve growth factor (NGF). NGF has shown to have neuroprotective  
and regenerative effects when delivered to relevant areas of the brain. NsG0202 
is aimed at treating the progressive dementia associated with AD. The Phase Ib  
study is carried out in collaboration with the Departments of Geriatrics and    
Neurosurgery at the Karolinska University Hospitals, Stockholm, Sweden, and is  
headed by Assoc. Prof. Maria Eriksdotter Jönhagen, Department of Geriatrics. It 
is expected that the initial three patients will have the EC biodelivery device 
implanted in the beginning of 2008. In all, six patients will participate in    
this phase Ib study, which will run for one year.                               

“This is a significant milestone for NsGene and our EC biodelivery platform and 
pipeline” says Lars U. Wahlberg, Exec. Vice President & COO, NsGene. He         
continues: “With the CTA approval we have validated that our novel platform     
technology fulfil the necessary manufacturing and regulatory requirements to    
progress into clinical evaluation. The EC biodelivery platform has the potential
of generating a broad product pipeline in multiple therapeutic areas such as    
Parkinson's disease and epilepsy and with the initial CTA approval in hand, our 
pipeline of EC biodelivery products has moved significantly closer to the market
place”.                                                                         

Teit E. Johansen, President & CEO of NsGene is very excited about the CTA       
approval of the EC biodelivery product for Alzheimer's disease. He states: “This
landmark achievement brings NsGene a step closer to a breakthrough for a        
treatment of this devastating disease and, by entering the clinic, the Company  
has risen to the next level of corporate development including partnering       
opportunities for a maximal exploitation of our NsG0202 product”.               

For further information please contact:	                                        
NsGene A/S                                                                      
Lars U. Wahlberg                                                                
Executive Vice President & COO                                                  
Telephone: +45 44 60 89 13                                                      
E-mail: luw@nsgene.dk                                                           

Background on EC biodelivery device                                             
The EC biodelivery device is a cell-based biodelivery system of protein factors 
to the nervous system providing a controlled, site-specific and safe delivery of
a variety of therapeutic substances. For central nervous system (CNS)           
indications, one or multiple EC biodelivery devices can be implanted in defined 
regions of the brain to deliver any proteins, including growth factors,         
antibodies, and neuropeptides, across the blood-brain-barrier. The proprietary  
EC biodelivery system consists of a catheter-like device containing in its      
active portion a genetically modified human cell line enclosed behind a         
semi-permeable hollow fiber membrane. The membrane allows for the influx of     
nutrients and the outflow of the therapeutic factor(s) but prevents the direct  
contact between the therapeutic cells and the host tissue. The encapsulated     
cells provide long-term factor secretion from the implanted device.             

EC biodelivery platform is a strongly and broadly patented technology platform  
offering great safety advantages over direct gene therapy approaches, and       
technical and functional advantages over pump technologies.                     

Background on NsGene,                                                           
NsGene A/S (www.nsgene.com) is a privately held Danish biotechnology company    
founded in December 1999 as a spin-off from NeuroSearch A/S, a Danish           
pharmaceutical company. NsGene develops novel biologicals for the treat­ment of 
neurological diseases. Based on the EC biodelivery platform, NsGene develops EC 
biodelivery products for neurological diseases including Alzheimer's disease    
(ECB-AD), Parkinson's disease (ECB-PD) and intractable epilepsy (ECB-EP). In    
addition hereto, a number of EC biodelivery products for other indications are  
under investigation. Today, NsGene employs 27 people at its research facility   
located near Copenhagen in the Medicon Valley Region. For more information      
please see www.nsgene.dk.