Ixion Biotechnology Receives NIH Funding For Sjögren's Syndrome Research

ALACHUA, Fla., November 18, 2002 - Ixion Biotechnology announced today that it has been awarded a Phase II Small Business Technology Transfer Research (STTR) grant from the National Institute for Allergy & Infectious Diseases for research entitled "M3 Receptor: Diagnostic Marker for Sjögren's Syndrome."

The M3 Receptor, or type-3 muscarinic acetylcholine receptor, is receiving widespread attention lately as a potential primary target in the accurate diagnosis of Sjögren's syndrome, a disease in which patients suffer chronic dry eyes and dry mouth because the body's white blood cells attack the moisture-producing glands. An estimated 2.4 to 4 million people, of which 90 percent are women, have some form of the disease.

Sjögren's syndrome is probably under-diagnosed, according to lead investigator Ammon B. Peck, PhD, Ixion's chief scientist and professor in the Departments of Pathology and Oral Biology at the University of Florida, Gainesville. "One problem is that the diagnostic markers presently used to identify the disease are not especially disease specific. Recently, we and other researchers have shown that sera from confirmed Sjögren's syndrome patients contain an antibody to the M3 Receptor expressed on exocrine tissues. One method for diagnosing the disease involves cutting a salivary gland out of the lip, often resulting in considerable discomfort for the patient. The new assay is less invasive, and preliminary results indicate that it is highly specific."

Previously, in a Phase I grant, Ixion and University of Florida researchers showed that this assay could detect anti-M3 Receptor auto-antibody in Sjögren's syndrome patients. With this Phase II grant, they aim to complete the development of the assay, obtain statistically relevant evidence of the test's reliability, and determine the association between the detection of the anti-M3 Receptor auto-antibody and prediction of the disease.

Co-investigator in the study is Vijayakumar Ramiya, PhD, Director of Ixion's Stem Cell/ Diabetes business unit.

This grant for $504,690 is Ixion's 12th SBIR/STTR grant in three years, totaling nearly $3.5 million in funding. Ixion, a clinical-stage biotechnology, develops cell-based therapies focused on treatment of metabolic disorders. Ixion is the world's foremost company specializing in oxalate control therapies for primary hyperoxaluria, recurrent kidney stones, and other oxalate-related conditions. It also is known for its research in diabetes, including somatic cellular therapies to treat diabetes. Q-Med AB (QMED.ST), whose shares are listed on the Stockholm stock exchange, is a major investor in and collaborator with Ixion. For more information about Ixion's current activities, visit Ixion's web site at www.ixion-biotech.com or call 386-418-1428.

This news release discusses historical information and includes forward-looking statements that involve a number of risks and uncertainties, such as risks associated with pre-clinical and clinical development in the biotechnology industry, determinations by regulatory and administrative governmental authorities, competitive factors, technological developments and costs of developing, producing and selling products.

Contacts:

Weaver H. Gaines
Chairman and Chief Executive Officer
Ixion Biotechnology, Inc.
13709 Progress Blvd., Box 13
Alachua, FL 32615
Ixion Biotechnology, Inc.
386-418-1428 (voice)
386-418-1583 (fax)
Info@ixion-biotech.com

Lisette Hilton
561-392-5649 (voice)
561-392-7496 (fax)
Info@ixion-biotech.com