direct/Celtic Pharma: CELTIC PHARMA ACQUIRES STAKE IN IDEA AG

CELTIC PHARMA ACQUIRES STAKE IN IDEA AG

21.7% shareholding purchased in Europe´s leading targeted therapeutics company IDEA prepares to expand its late stage clinical development programmes

HAMILTON, BERMUDA and MUNICH, GERMANY: September 28, 2005 - Celtic Pharmaceutical Holdings LP ("Celtic Pharma"), the global private equity firm focused on the biotechnology and pharmaceutical industries, and IDEA AG today announce that Celtic has acquired a 21.7% holding in IDEA, the Munich-based biopharma company developing targeted therapeutics based on novel, Transfersome® carriers.

IDEA´s breakthrough, proprietary Transfersome® technology enables the targeted and non-invasive delivery of drugs (including large molecules such as proteins) through the skin, with a particular focus on pain relief and dermatology. The Company´s Transfersome® carriers are topically applied on the skin and can be engineered to achieve high drug concentration at or near the site of application, increasing drug potency and diminishing side effects. IDEA has an attractive portfolio of proprietary Transfersome® applications with its leading compound, IDEA-033, currently in phase III trials in Europe for the treatment of peripheral pain. Separately, IDEA is also announcing very encouraging interim analysis data from the ongoing German open label phase III study of IDEA-033, which is partnered in North America with a top 5 global pharmaceutical company. IDEA retains exclusive rights to this product outside of North America, including for Europe and Japan.

Celtic Pharma has acquired the shares previously held by the German government organisation tbg and the majority of IDEA shares held by MPM Capital. IDEA consequently announces the appointment of Mr. John Mayo, a Managing Principal of Celtic Pharma, to its Supervisory Board, replacing Dr. Steven St. Peter of MPM Capital. MPM sold the balance of its shares to a number of recent Series D investors in IDEA who had exercised their proportional pre-emption rights.

John Mayo commented: "IDEA has strong management and a genuinely commercial proposition. IDEA is probably the most interesting targeted therapeutics company in Europe today. Its clinical data show that the Transfersome® technology represents a powerful tool for delivering drugs through the skin and for achieving tissue specific drug action. Our exposure to IDEA-033 represents the fifth late stage development product investment for Celtic Pharma during 2005."

Stephen Evans-Freke, a Managing Principal of Celtic Pharma, added: "Given the well publicised side effects of COX-2 pain relievers, IDEA-033´s development is very timely and it obviously has the potential to be an important product in all major markets worldwide. In addition to the pain relief area, we are excited by the prospect of applying Transfersomes® in new therapeutics for dermatological conditions, and look forward to working with the IDEA team to move their lead programmes into late-stage development."

Steven St Peter, General Partner of MPM Capital, commented: "There was a tremendous level of interest in IDEA for its Series D financing, in which MPM also participated. On the heels of that transaction, we were approached about selling our position. Given that our investment was from a 1997 vintage year fund, we worked creatively with IDEA´s Management and participating funds to find a good balance of liquidity and return objectives. Celtic Pharma was a very good, and in many respects unique, partner in that dialogue."

Gregor Cevc, Chief Executive Officer of IDEA, said: "IDEA is excited about gaining Celtic Pharma as a supporter and welcomes Mr. Mayo to the Board of Directors. Celtic Pharma, with its investment focus on late-stage development projects and the great experience in the pharmaceutical and biotechnology sectors of its principals, is the ideal new partner for IDEA at this stage of the company´s development."


Enquiries
For further information please contact:

Celtic Pharma
John Mayo, Managing Principal
Tel: +44 (0)20 7786 5550
Stephen Evans-Freke, Managing Principal
Tel: +1 212 755 9411

IDEA AG
Gregor Cevc, Chief Executive
Tel: +49 89 32 46 33 10
Jens Peter Wartmann, VP Finance
Tel: +49 89 32 46 33 91

Financial Dynamics
David Yates
Tel: +44 (0)20 7831 3113
Davina Langdale




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