Lilly and BioMS Medical Announce Global Licensing and Development Agreement



    Lilly to Acquire Exclusive Rights to Novel Late-Stage Molecule for the
    Treatment of Multiple Sclerosis

    INDIANAPOLIS, IN and EDMONTON, AB, Dec. 17 /CNW/ - Eli Lilly and Company
(NYSE:  LLY) and BioMS Medical Corp. (TSX:MS) today announced that the two
companies have entered into a licensing and development agreement granting
Lilly exclusive worldwide rights to BioMS Medical's lead multiple sclerosis
(MS) compound, MBP8298. The compound is currently being evaluated in two
pivotal phase III clinical trials in secondary progressive MS (SPMS) and one
phase II clinical trial in relapsing-remitting MS (RRMS).
    Under the terms of the agreement, Lilly and BioMS Medical will
collaborate on the development of MBP8298 and will also share in certain
development costs with Lilly being responsible for future R&D, manufacturing
and marketing activities. BioMS Medical will receive an upfront payment of $87
million, as well as potential development and sales milestones up to $410
million and escalating royalties on sales commensurate with the current stage
of development of the product if MBP8298 is successfully commercialized. BioMS
Medical will continue to oversee the current clinical trials. Other terms of
the deal were not disclosed.
    "Lilly is pleased to add yet another promising late-stage compound to our
portfolio," said Dr. William W. Chin, M.D., vice president of discovery
research and clinical investigation for Lilly. "Multiple sclerosis is a
disease with significant unmet patient needs. MBP8298 has shown potential in
slowing the progression of secondary progressive MS, and thus may provide an
effective therapeutic option for patients with this debilitating disease. We
are also hopeful that MBP8298 may prove beneficial in treating patients with
relapsing remitting MS. We intend to fully leverage our expertise in
neuroscience to continue the development of this novel molecule."
    "We are very pleased to collaborate with Lilly on the worldwide
development of MBP8298," said Kevin Giese, President and CEO at BioMS Medical.
"Lilly's well established leadership in the neurology arena and considerable
resources, expertise and proven ability to launch first-in-class drugs will
help MBP8298 to realize its full development and commercial potential."
    The transaction is expected to become effective in the first quarter of
2008, contingent upon clearance under the Hart-Scott-Rodino Anti-Trust
Improvements Act, if required. At closing, Lilly would expect a charge to
earnings for acquired in-process research and development. The exact amount of
the charge has not yet been determined, but is estimated to be $0.05 per
share. Lilly's 2008 pro forma adjusted earnings per share guidance remains
unchanged at $3.85 to $4.00. On a reported basis, including the charge for
this transaction with BioMS Medical, Lilly now expects its 2008 earnings per
share to be in the range of $3.80 to $3.95. See the reconciliation below for
further detail.

    

    Reconciliation of 2008 Earnings Per Share Expectations:
    -------------------------------------------------------

                                        2008            2007
                                    Expectations     Expectations   % Growth
                                   --------------- --------------- ----------
    E.P.S. (reported)              $3.80 to $3.95  $2.74 to $2.79  36% to 44%
    Eliminate estimated
     in-process research and
     development charge associated
     with BioMS Medical in-licensing   .05
    Eliminate asset impairments
     and restructuring charges
     associated with previously
     announced manufacturing
     decisions                           -              .08
    Eliminate special charges
     related to adjustment to
     insurance recoverable               -              .06
    Eliminate in-process research
     & development charges
     associated with ICOS, Hypnion,
     and Ivy acquisitions and OSI,
     Glenmark and MacroGenics
     in-licensing transactions           -              .63
    Include pro forma as if the
     ICOS acquisition was
     completed on January 1, 2006        -             (.01)
                                   --------------- ---------------
    E.P.S. (pro forma adjusted)    $3.85 to $4.00  $3.50 to $3.55   8% to 14%
                                   --------------- ---------------
    


    About MBP8298
    --------------
    MBP8298 is a synthetic peptide that consists of 17 amino acids having a
sequence identical to that of a portion of human myelin basic protein (MBP).
MBP8298 is being developed for the potential treatment of multiple sclerosis
(MS), an autoimmune disease caused by immune attack against normal components
of the central nervous system. The sequence of MBP8298 is associated with the
autoimmune process in MS patients with certain immune response genes (HLA
types DR2 and/or DR4); MS patients having these genes represent 65 to 75
percent of all MS patients.
    The apparent mechanism of action of MBP8298 is the induction or
restoration of immunological tolerance with respect to ongoing immune attack
as a result of high doses of peptide delivered periodically by the intravenous
route. The potential benefit of MBP8298 for any individual patient is
therefore expected to be related to the role this peptide plays in that
patient's immune system. The degree of immunomodulation achieved will depend
on the relationship among the peptide, HLA molecules and T cells.
    The results of phase II and long-term follow-up treatment of MS patients
with MBP8298, published in 2006 in the European Journal of Neurology (EJN),
showed that MBP8298 safely delayed median time to disease progression for five
years (versus placebo) in progressive MS patients with HLA types DR2 and/or
DR4. Thus, MBP8298 has the potential to be used as a tailored therapy for
patients genetically determined to express the appropriate HLA molecules.
    MBP8298 is being developed in three late-stage clinical trials:
    
      -  MAESTRO-01: A pivotal phase II/III trial for secondary progressive
         MS (SPMS) patients in Canada and Europe.
      -  MAESTRO-03: A pivotal phase III trial for SPMS patients in the
         United States.
      -  MINDSET-01: A phase II trial for relapsing-remitting MS (RRMS)
         patients in Europe.
    

    About Multiple Sclerosis
    ------------------------
    Multiple sclerosis (MS) is thought to affect as many as 2.5 million
people worldwide, including approximately 75,000 in Canada, 400,000 in the
United States and more than 500,000 in Europe. It is a disease that affects
more women than men, with onset typically occurring between 20 and 50 years of
age. MS is caused by damage to myelin, the protective sheath surrounding nerve
fibers in the central nervous system, which interferes with messages from the
brain to the body. Symptoms of MS may include vision problems, loss of
balance, numbness, difficulty walking and paralysis. Approximately 40 percent
of all MS patients have the secondary progressive form of the disease.

    BioMS Medical Conference Call
    -----------------------------
    BioMS Medical management will host a conference call at 8:30 a.m. (EST)
on Tuesday December 18, 2007 to discuss the global licensing and development
agreement with Lilly. Participants may listen via an audio web cast,
accessible through the Company's website at www.biomsmedical.com or via
telephone. The telephone conference number is 416-644-3420 or toll-free at
1-800-731-6941.

    About Lilly
    -----------
    Lilly, a leading innovation-driven corporation, is developing a growing
portfolio of first-in-class and best-in-class pharmaceutical products by
applying the latest research from its own worldwide laboratories and from
collaborations with eminent scientific organizations. Headquartered in
Indianapolis, Ind., Lilly provides answers - through medicines and information
- for some of the world's most urgent medical needs. Additional information
about Lilly is available at www.lilly.com.

    About BioMS Medical Corp.
    -------------------------
    BioMS Medical is a biotechnology company engaged in the development and
commercialization of novel therapeutic technologies. BioMS Medical's lead
technology, MBP8298, is for the treatment of multiple sclerosis and is being
evaluated in two pivotal phase III clinical trials for secondary progressive
MS patients, MAESTRO-01 in Canada and Europe and MAESTRO-03 in the United
States. It additionally is being evaluated for relapsing remitting MS patients
in a Phase II trial in Europe entitled MINDSET-01. Additional information
about BioMS Medical is available at www.biomsmedical.com.

    This news release contains forward-looking statements. These statements
are subject to known and unknown risks and uncertainties that may cause actual
future experience and results to differ materially from the statements made.
Factors that might cause such a difference include, among others, the
completion of clinical trials, the FDA and other foreign review processes and
other governmental regulation, Lilly's and BioMS Medical's abilities to
successfully develop and commercialize drug candidates, competition from other
pharmaceutical companies, the ability to effectively market products, and
other factors described in Lilly's most recent filings with the Securities and
Exchange Commission. Lilly undertakes no duty to update forward looking
statements.




For further information:

For further information: Refer to: Lilly: Mark E. Taylor, (317)
276-5795; BioMS: Ryan Giese, (780) 448-9587

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