Kareus Therapeutics Enters Strategic Drug Development Alliance With Quintiles

LA CHAUX-DE-FONDS, Switzerland, June 13, 2011 -

- Alliance Combines Innovative Drug Discovery With World-Class
Development Expertise and Global Infrastructure to Expedite Clinical
Proof-of-Relevance in Two Programs

Kareus Therapeutics SA (”Kareus” or the “Company”), the
company focused on the development of novel therapeutics to address high
unmet medical need, today announced a broad strategic alliance with Quintiles
to progress the development of two of Kareus’ pre-clinical programs through
clinical trials.

Under the terms of the alliance, Quintiles will make an
investment in Kareus in the USD$ seven figure range, apportioned between an
equity investment and access to clinical service on a shared-risk basis.
Following the investment by Quintiles, Kareus plans to submit an
investigational new drug (IND) application for KU-046, a first-in-class new
chemical entity discovered by Kareus for the treatment of Alzheimer’s
disease. Kareus has also identified a lead series of molecules demonstrating
potent, long-lasting insulin sensitisation with a broad therapeutic window
for the treatment of Type-2 diabetes and will select a clinical candidate for
development later in 2011. Quintiles will conduct Phase I proof-of-relevance
clinical trials for both KU-046 and the chosen diabetes candidate.

Tom Perkins, Senior Vice President of Corporate Development
for Quintiles said: “This agreement is an example of how leading
biotechnology companies are building partnerships that extend beyond the
traditional licensing model to manage risk, increase productivity, and
increase value to stakeholders. We are pleased that Kareus has chosen to
leverage Quintiles’ suite of comprehensive services, including our new Phase
I research unit in Hyderabad, India.”

Patrick Doyle of Kareus Therapeutics said: “We are delighted
to have signed this alliance with Quintiles, a leading global provider of
clinical services. With Quintiles as our partner, Kareus is now ideally
placed to accelerate the development of our novel drug pipeline and advance
the first product candidates generated by our innovative discovery platform,
KARLECT, into clinical studies.”

Kareus has developed a pipeline of novel molecules targeting
diseases of the central nervous system based on its proprietary KARLECT
chemistry and drug discovery platform which targets molecular and gene
expression pathways. KU-046, discovered using the KARLECT platform, targets
pathways upstream from the increased abeta peptide production found in
Alzheimer’s disease and has demonstrated significant improvement in cognition
in a number of pre-clinical models. Kareus will also seek to develop novel
small molecule candidates in metabolic diseases, including diabetes, and
inflammation. In addition, the leadership team of Kareus has an extensive
background in cardiovascular disease and has applied this know-how to the
development of 505(b)(2) filings for lipid lowering and cardiovascular
disease.

About Kareus Therapeutics SA

Kareus Therapeutics SA is a private biotechnology company
focused on the development of novel therapeutics to address high unmet
medical need. Kareus was founded on the scientific expertise of Dr Uday
Saxena and is organised in a virtual manner, led by a highly experienced team
comprising Dr.’s Uday Saxena (R&D strategy), Ish Khanna (chemistry &
pre-clinical), Ram Pillarisetti (research & pre-clinical), Akella
Venkateswarlu (IP & science) and Patrick Doyle (business & corporate). Kareus
employs three approaches to drug discovery and development: i) KARLECT, a
unique enabling chemistry platform that combines currently marketed drugs and
GRAS molecules to produce new chemical entities, which has been applied to
Alzheimer’s disease; ii) novel small molecule drug discovery in metabolic
diseases & inflammation; and iii) 505(b)(2) approaches to lipid lowering and
cardiovascular disease, leveraging its extensive global networks with
contract research organizations, academic laboratories and biotechnology
companies. For further information, please visit
www.kareustherapeutics.com

About Quintiles

Quintiles is the only fully integrated biopharmaceutical
services company offering clinical, commercial, consulting and capital
solutions worldwide. The Quintiles network of more than 20,000 engaged
professionals in 60 countries works with an unwavering commitment to
patients, safety and ethics. Quintiles helps bio pharmaceutical companies
navigate risk and seize opportunities in an environment where change is
constant. For more information, please visit www.quintiles.com

    For more information about Kareus Therapeutics, please contact:

    Kareus Therapeutics
    Patrick Doyle
    T: +44(0)7871-309-056
    E: pdoyle@kareustherapeutics.com

    M:Communications
    Emma Thompson
    T: +44(0)20-7920-2330
    E: kareus@mcomgroup.com

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