NeuroSearch announce an expansion to their existing alliance with GlaxoSmithKline

-	The new amendment adds more novel compounds to the portfolio of compounds
that are being developed under the existing alliance and which were selected
under the previous five-year drug discovery phase of the alliance 

-	NeuroSearch will receive an undisclosed upfront payment and may receive up to
DKK 812 million (EUR 109 million) in premarketing milestone payments as well as
sales royalties from GlaxoSmithKline (GSK) on each of the novel compounds in
the expanded portfolio 

-	Each novel compound is now included in the existing alliance's conditional
share put option for NeuroSearch totalling up to DKK 149 million (EUR 20
million) 

Following the completion of a five-year (2003-2008) drug discovery alliance,
having covered multiple drug discovery programmes and drug targets, NeuroSearch
and GSK have agreed to include additional compounds into the portfolio of
assets under continued collaboration. 

Going forward, the collaboration primarily focuses on joint development of
novel drug candidates identified and matured during the previous five years of
the drug discovery collaboration. Including the new amendment, the alliance
portfolio now comprises both clinically and pre-clinically staged drug
candidates and a number of additional compounds characterized as potential
development candidates but not yet taken into the development phase. 

In summary, NeuroSearch could receive milestone payments from the total
expanded portfolio of up to more than DKK 7 billion (>EUR 950 million) plus
attractive double-digit royalties on GSK's global sales of any marketed product
under collaboration. In 2009-2010, upfront payment and potential short term
milestone payments may exceed DKK 525 million (> EUR 70 million). 

Further, NeuroSearch retains a conditional right to sell additional ordinary
NeuroSearch shares (“share put option”) to GSK at market price for a total
amount of up to DKK 149 million (EUR 20 million) until end November 2010. The
share put option can be exercised at NeuroSearch's own discretion in four equal
tranches in connection with initiation of Phase I studies with compounds from
the expanded portfolio. 

For the expanded portfolio of drug candidates, NeuroSearch will be responsible
for the preclinical as well as for the early clinical development up to and
including clinical Phase IIa studies (“Proof-of-Concept”) whereas GSK will be
responsible for the late-stage development as well as production and
commercialisation. On each compound covered by the agreement, NeuroSearch will
receive milestone payments throughout the development phases with the first
payments to be received on Phase I initiation or even earlier for a part of the
portfolio. For each product that is successfully developed and commercialized,
NeuroSearch will receive DKK 812 million (EUR 109 million) in pre-marketing
milestone payments as well as double digit royalties on GSK's global sales. 

As of 1 January 2009 the expanded portfolio of compounds covered by the
collaboration with GSK, including the novel compounds from the new amendment
consists of the following: 

•	NS2359 for the treatment of depression, currently in Phase IIb development.
Remaining milestone payments amount to DKK 625 million (EUR 84.5 million) and
NeuroSearch is entitled to royalties on GSK's global sales of the product.
Results from two completed Phase IIb studies as well as GSK's decision on Phase
III development are expected during H1 2009. 

•	Five compounds in pre-clinical development. Pre-marketing milestone payments
per product are agreed to amount to up to DKK 812 million (EUR 109 million) and
NeuroSearch is entitled to royalties on GSK's global sales. In the assessment
of the joint portfolio to be taken forward, NeuroSearch and GSK have agreed to
halt further development of the compound NSD-644. 

•	A defined number of potential development candidates (qualified lead
compounds) selected under the new amendment to be advanced into pre-clinical
development in the first half of 2009. Milestone payments will be accelerated
for these compounds. 


Flemming Pedersen, CEO of NeuroSearch, commented:
“We are very pleased to announce the broad scope of continued collaboration
with GSK following five years of successful drug discovery efforts. Our joint
portfolio of drug candidates represents significant revenue potential to
NeuroSearch - both short term and long term, and secures the basis for optimal
speed and progress in the development of a large part of our drug pipeline.” 


NeuroSearch will disclose financial guidance for 2009 in connection with the
company's 2008 full year announcement on 4 March 2009. 


Thomas Hofman-Bang
Chairman of the Board



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 - Company profile
NeuroSearch (NEUR) is a Scandinavian biopharmaceutical company listed on Nasdaq
OMX Copenhagen. 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 share of NeuroSearch's
activities is partner financed through collaborations with GlaxoSmithKline
(GSK), Abbott and Astellas. The drug pipeline comprises 13 clinical (Phase
I-III) development programmes: ACR16 for Huntington's disease (Phase III),
tesofensine for obesity and in Type 2 diabetes (ready for Phase III), NS2359
for depression (Phase II) and ADHD (Phase II) in partnership with GSK, ABT-894
for ADHD (Phase II) and pain (Phase II) in partnership with Abbott, ACR16 for
schizophrenia (Phase I) in partnership with Astellas, ACR325 for Parkinson's
disease (Phase II in preparation) and bipolar disorder (Phase II in
preparation), ABT-107 and ABT-560 for the treatment of various CNS disorders -
both (Phase I) in collaboration with Abbott, ACR343 for Parkinson's disease
(Phase I) and NSD-788 for anxiety/depression (Phase I). In addition,
NeuroSearch has a broad portfolio of preclinical drug candidates and holds
equity interests in several biotech companies.