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Phase 2 Trial of SGS742 Demonstrates Improved Cognition in Patients with Mild Cognitive Impairment

HALF MOON BAY, Calif., April, 28, 2004 -- Saegis Pharmaceuticals, Inc., a privately-held biopharmaceutical company focused on developing medicines that protect and enhance the function of the human mind, presented results from a Phase II clinical trial of its lead product, SGS742, demonstrating improvements in cognition in patients with Mild Cognitive Impairment at the 56th Annual Meeting of the American Academy of Neurology. SGS742 is an orally active, selective GABAB receptor antagonist.

In this Phase II clinical study, 110 patients were randomized to receive either SGS742 or placebo daily for 8 weeks. There was no improvement of cognitive performance in the Hopkins Verbal Learning Test-Revised (HVLT) endpoint, however, significant improvements and positive trends were seen in additional endpoints including NYUParagraph, WAIS Digit Symbol Test (DST), and the CANTAB computer battery assessing memory, attention and psychomotor speed. [Poster P02.053]

“We are encouraged by the results of this Phase II study, which demonstrate that SGS742 has the potential to improve cognitive functions without the adverse effects typically associated with other cognitive enhancement therapeutics,” said Rodney Pearlman, President and CEO of Saegis. “In addition to exploring how SGS742 may benefit patients diagnosed with MCI, we plan to pursue additional clinical development of SGS742 for Alzheimer’s disease.” Mild Cognitive Impairment (MCI) is a condition characterized by mild recent memory loss without dementia or significant impairment of other cognitive functions. The Peripheral and Central Nervous System Advisory Committee has stated that more than 80% of patients with MCI eventually develop Alzheimer’s disease. The development of a therapeutic to treat MCI may prevent, delay or even reverse the cognitive decline of patients diagnosed with this disorder.

A significant amount of preclinical and clinical evidence has been collected demonstrating that SGS742 has the ability to enhance learning in mice, rats, primates and most recently in humans. Saegis in-licensed SGS742 from Novartis Pharma AG in 2001.

Source: Saegis Pharmaceuticals, Inc.

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