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www.fdanews.com/articles/88401-roche-and-actelion-to-collaborate-on-autoimmune-disorder-treatment

ROCHE AND ACTELION TO COLLABORATE ON AUTOIMMUNE DISORDER TREATMENT

July 17, 2006

Swiss drugmakers Roche and Actelion announced that they have entered into an exclusive worldwide collaboration to jointly develop and commercialize Actelion's selective S1P1 receptor agonist, an immunomodulator with the potential for once-a-day oral dosing. The compound is currently being developed in Phase I trials. The two companies plan to jointly develop and commercialize this compound for multiple autoimmune disorders.

Roche will pay Actelion an upfront payment of $75 million in the second half of 2006. Further development and approval milestone payments are due for additional compounds. Roche will pay Actelion royalties for all product sales.

For the current selective S1P1 receptor agonist, Actelion will fully fund all development activities up to the end of Phase II for the first two indications. All subsequent development and commercialization costs will be shared equally between Roche and Actelion. Both companies will co-promote any product resulting from this collaboration and will share profit equally.