Grant of US Licence

RNS Number:5679J
Henderson Morley PLC
27 September 2006


FOR IMMEDIATE RELEASE                                          27 SEPTEMBER 2006


                              HENDERSON MORLEY PLC
                                     (AIM)
                        Business: Drug Discovery Company

                       HENDERSON MORLEY GRANTS LICENCE TO
                           CUTANEA LIFE SCIENCES INC


The Board of Henderson Morley plc, ("Henderson Morley" or "the Company") the AIM
listed drug discovery company, is pleased to announce that it has granted a
licence ("Licence") in respect of Ionic Contra Viral Therapy ("ICVT") to Cutanea
Life Sciences Inc ("Cutanea"), a specialist US based dermatology drug
development company.

Key Points:

   * This is an exclusive American, Mexican and Canadian wide licence to
     bring the products to market;

   * Henderson Morley will receive up to $6.675 million in development and
     commercialisation milestone payments;

   * If Henderson Morley achieves a market share rising to up to 20 per cent
     of the estimated addressable market, and based on several key assumptions*,
     potential royalties on sales could be $115 million in the first 10 years
     following marketing authorisation, in the USA alone.

The Licence has been granted under a licence agreement ("Licence Agreement") to
Cutanea, a U.S. pharmaceutical company, specialising in the development of
dermatology products in the US market.

The Licence Agreement is for new applications of ICVT for the treatment of
dermatological conditions in humans, including but not limited to skin warts,
verrucae and molluscum contagiosum. The Licence is an exclusive American,
Mexican and Canadian wide licence to bring products to market through a
programme of pre-clinical and clinical development of treatments either by
Cutanea or through a sub-licence. Under the terms of the Agreement, Henderson
Morley will receive up to $6.675m in development and commercialisation milestone
payments up to the point at which the application receives regulatory approval,
and will receive royalties on net sales thereafter.

Sales Estimates of ICVT (dermal warts) in the United States

Under its business plan, based on certain assumptions, the Board of Henderson
Morley believes that, following an approximate four to five year period to
complete the clinical development and regulatory licence approval, sales of the
product in excess of $1.5 billion could be achieved over the subsequent ten year
period. This would give a potential royalty to Henderson Morley in excess of
$115 million over this term. These sales estimates are based on a number of key
assumptions concerning the size of the market and the possible penetration of
the product in this market*. This estimate is not intended to be a forecast, but
has been produced to give shareholders an indication of the possible impact of
the product reaching the point of commercialisation.

In addition, non-royalty sublicensing income ("NRSI") shall be paid to Henderson
Morley should Cutanea sub-license the technology to other parties.

The President and CEO of Cutanea is Robert Bitterman. Dr. Bitterman has 14 years
of leadership experience in the global dermatology market and over 28 years of
experience in a variety of positions in the pharmaceutical industry. Under Dr.
Bitterman's leadership as CEO of Dermik Inc, he was able to gain regulatory
approval for, and launch, seven new drug and device products.

Cutanea Life Sciences Inc. is a private US company, located in the Philadelphia
area, focusing on the acquisition, development and commercialisation of
innovative dermatology related products. Cutanea's stated mission is to develop
and commercialise novel, proprietary products to improve skin health, appearance
and overall well-being. Cutanea comprises an experienced team of scientific and
commercial professionals with over 60 years of combined experience in the
successful development and commercial launch of products in the healthcare
space.

Commenting on the Agreement, Executive Chairman Andrew Knight said: "As a drug
discovery company it is vital that we continue to grant licenses to further
develop our technology portfolio. This is our third ICVT license agreement, and
we are very pleased to be working with Cutanea, whose management team has a
proven track record of commercialising dermatology products."

Robert Bitterman, President and CEO of Cutanea also commented: "We are excited
to have access to this innovative and proprietary technology. We seek to bring
novel, non-invasive therapy to what has been to date, an unsatisfied patient
need."

                                    --ENDS--

Enquiries:
HENDERSON MORLEY PLC                                          Tel: 0121 442 4600
Andrew Knight, Chairman

BREWIN DOLPHIN SECURITIES LTD                                 Tel: 0113 241 0126
Neil Baldwin

BISHOPSGATE COMMUNICATIONS LTD                                Tel: 020 7430 1600
Maxine Barnes                                               Mobile: 07860 489571
Nick Rome


* Key Assumptions

Key Assumptions upon which the Henderson Morley management team have calculated
potential future royalty payments:

Regulatory approval of ICVT products received within five years.
Incidence of skin warts 4% p.a1 Incidence of verrucae 2% p.a2
Population of USA currently 300 million, Growth rate 1% p.a3
Royalty payments made as per contract
Market penetration of the new product : Year 1, 5% of Market, Year 2 10% of
Market, year 3, 15 % Market, subsequent market penetration for the following
five years 20% of Market, Decreasing in year 9 to 18% and 15% in year 10.
Factory door price estimated to be $40 per treatment course, increasing by
increments over the licence term.

References

1. Williams HC, Potter A, Strachan D. The descriptive epidemiology of warts in
British schoolchildren. Br J Dermatol 1993; 128: 504+/-11.

2. Epidemiology and pathogenesis of plantar warts in HIV-infected patients. Int
Conf AIDS 1996 Jul 7-12; 11:97 (abstract no. Mo.B.1244) Barbosa P, Loveland L,
Kilpatrick R, Kenyon E; California College of Podiatric Medicine, San Francisco,
California. Fax: (415) 292-0439.

3 US National Census 2006


Editors Notes
Ionic Contra Viral Therapy (ICVT) is a new way of killing viruses discovered by
Henderson Morley. Their scientific team made the important discovery that if the
cellular ion Potassium is depleted from virus infected cells, the virus is
unable to replicate. It appears to be a class effect for DNA viruses meaning
that products based on ICVT have been developed into several clinical
applications to treat important human pathogens. This includes herpes simplex,
human papilloma viruses and adenoviruses. Several other viruses in man and
animals are also suitable candidates for ICVT treatment.

The technology utilises a combination of two cardiovascular drugs that have
never been considered as anti-viral treatments, namely Furosemide and Digoxin.
Consequently new patents have been created for this new use, and because the
drugs have been tried and tested over many years, the speed and cost of getting
ICVT products based on these compounds to market, will be much lower than drugs
using new chemical entities.



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