Pharmexa enters into an agreement regarding GV1001 with the Korean company KAEL Co. Ltd

Summary: Pharmexa and KAEL Co. Ltd. of South Korea have entered into an
agreement regarding GV1001 and Pharmexa´s Norwegian subsidiary Gemvax. Kael
will acquire all shares of Gemvax and will thus assume all rights and
responsibilities relating to the patent portfolio of GemVax including GV1001.
In addition, Kael will continue to support the Telovac Phase 3 trial with
GV1001 in pancreatic cancer. Pharmexa will receive an upfront payment for the
sale of GemVax, as well as milestones and royalties upon successful
commercialization of the GV1001 peptide vaccine. 

KAEL, through their wholly owned subsidiary VaxOnco, will acquire GemVax.
VaxOnco is a Korean company specializing in peptide based vaccines for the
treatment of cancer.   GemVax's GV1001 telomerase peptide vaccine will add to
VaxOnco's growing pipeline of peptide vaccines. 

KAEL will assume responsibilities for the support of the ongoing Telovac phase
3 trial in pancreatic cancer being conducted in the UK. KAEL also plans to
develop the GV1001 telomerase peptide vaccine in other cancer indications. 

Financial details are not disclosed. Pharmexa will receive an upfront payment
for the purchase of the GemVax subsidiary. Additionally, Pharmexa will receive
milestone payments for successful registration and marketing of the GV1001
vaccine, as well as significant royalties on sales. 

Dr. Achim Kaufhold, Pharmexa´s CEO, says “We are pleased that Kael and VaxOnco
will pursue the further development of GV 1001 which is a unique product with
significant potential to combat cancer. It targets an enzyme called telomerase
which is rarely found in normal cells, but is overexpressed in most cancer
cells, which makes telomerase an ideal target for a cancer vaccine. In
addition, telomerase activity is a key factor in the process wherein cancer
cells lose their normal mortality, which is a common feature for all cancers.
GV1001 therefore has the potential to be a universal cancer vaccine.” 

Dr. Jay Sangjae Kim, Chairman of the Board for Kael and Vaxonco says, “We
appreciate Pharmexa giving us the opportunity to acquire GemVax and its
technology. We will cultivate the technology as a future growth engine of the
company through continuing development of GV1001 not only to improve its
efficacy in the current indications, but also to expand its use to prevent
cancers. The GV1001 cancer vaccine is a potential blockbuster drug and we aim
to move it to the market as rapidly as possible.” 

The agreement will not materially affect Pharmexa's financial guidance for
2008. 


Hørsholm, October 30, 2008

Achim Kaufhold
Chief Executive Officer
 
Additional information:
Claude Mikkelsen, Senior Vice President, Finance & Investor Relations, tel. +45
4516 2525 or +45 4060 2558 
Achim Kaufhold, Chief Executive Officer, tel +45 4516 2525

For the editors: Pharmexa A/S is a development stage company in the field of
active immunotherapy. Pharmexa's proprietary technology platforms are broadly
applicable, allowing the company to address critical targets in cancer and
chronic diseases, as well as serious infectious diseases such as HIV,
influenza, hepatitis and malaria. Collaborative agreements include H. Lundbeck
and Bavarian Nordic. With operations in Denmark and USA, Pharmexa employs
approximately 40 employees and is listed on the Copenhagen Stock Exchange under
the trading symbol PHARMX.