Zydus' Novel Orally Administered GLP-1 Agonist - 'ZYOG1' to treat Diabetes and Obesity Enters Phase I Clinical Trial

AHMEDABAD, India, June 21, 2010 - Zydus Cadila, a global healthcare provider and one of India's
leading healthcare companies has received Phase I clinical trial permission
from the DCGI for ZYOG1 - a novel GLP-1 agonist. Designed and developed at
the Zydus Research Centre using a unique platform technology, ZYOG1 is a
novel, oral, anti-diabetic molecule.

The new class of anti-diabetic drugs called Glucagon Like
Peptide-1 (GLP -1) agonists came to the fore in May 2005 when the first
molecule of this class was approved by the USFDA. Glucagon Like Peptide-1
agonists are being used to treat people with type 2 diabetes who have not
been able to control their blood sugar levels with oral medicines. It is an
injectible which acts like the natural hormones in the body that lowers blood
sugar.

ZYOG1 would represent a next generation GLP-1 agents, as it
would not have to be injected but can be taken orally. ZYOG1, when
administered by oral route demonstrated beneficial effects in preclinical
models on glucose reduction, HbA1c reduction and showed an added benefit of
weight loss. Additionally, ZYOG1 has displayed a differentiated preclinical
safety profile with no nausea-like symptoms in the preclinical studies.

Speaking on the new development, Mr. Pankaj R. Patel, Chairman
and Managing Director, Zydus Cadila, said, "The discovery of the novel oral
GLP-1 agonist, ZYOG1, using our own unique, discovery platform technology, is
a significant achievement for us. This novel molecule would address unmet
medical needs in treating diabetes and holds promising potential in the
anti-diabetic and anti-obesity market."

The number of diabetics in the world, now estimated to be 246
million, is expected to increase rapidly to 380 million in 2025. Currently,
41 million (16.6%) of the diabetic population live in India and the number of
diabetics are expected to touch 70 million (18.4%) in 2025. In 2025 nearly
half of the world's diabetic population will be from India, China, Brazil,
Russia and Turkey. Research in the field of anti-diabetic therapy seeks to
address the problems of hypoglycemia, GI side effects, lactic acidosis,
weight gain, CV risks, edema, potential immunogenicity etc., which pose a
major challenge in the treatment of diabetes. The global anti-diabetic market
was estimated at $24 bn in 2008.

ZYOG1 is the latest addition to the group's strong research
pipeline of NMEs in clinical development. The NME - ZYH1, for treating
dyslipidemia is undergoing Phase III clinical trials. ZYI1, the
anti-inflammatory and pain management compound is currently in Phase II
clinical trials. ZYO1, a novel drug candidate for treating obesity and
related disorders has completed Phase I clinical trials. ZYH7, a novel drug
candidate for treating dyslipidemia and metabolic disorders, ZYH2, the novel
agent for treating diabetes, ZYT1, a novel TR-beta agonist for treating
dyslipidemia are in Phase 1 clinical trials.

The Zydus Research Centre has over 20 discovery programmes on
with several candidates in the pre-clinical development stage focused on
metabolic, cardiovascular, pain and inflammation therapeutic areas. With over
375 research professionals spearheading its research programme, Zydus has
in-house capabilities to conduct discovery research from concept to IND
enabling pre-clinical development and human proof-of-concept clinical trials.

    Media Contact :
    Corporate Communications, Zydus Cadila
    T: +91-79-26868353
    E: sujatha.rajesh@zyduscadila.com

Media Contact : Corporate Communications, Zydus Cadila, T: +91-79-26868353, E: sujatha.rajesh at zyduscadila.com