Demegen Completes Second Stage of Periodontix Acquisition; Technology Synergy and Expanded Product Opportunities Realized

Apr 04, 2001, 01:00 ET from Demegen, Inc.

    PITTSBURGH, April 4 /PRNewswire/ -- Demegen, Inc.
 (OTC Bulletin Board:   DBOT), a biotechnology company specializing in the
 development of peptides for the treatment of infectious diseases and oncology,
 announced today that it has completed the second stage of the agreement to
 acquire the majority of the assets of Periodontix, Inc., a Watertown,
 Massachusetts clinical stage biopharmaceutical company, consistent with the
 terms previously announced on February 9, 2001.
     "The activities and events related to this transaction over the past three
 months have reinforced our decision to acquire this technology and the
 associated therapeutic product opportunities," stated S. Robert Fatora, Ph.D.,
 Chief Operating Officer of Demegen.  "We have added four active INDs
 associated with this technology to Demegen's product portfolio and expect to
 file a fifth IND this quarter.  All of these product opportunities are
 directed toward the treatment of oral infections; most notably mucositis and
 HIV-related fungal infections such as candidiasis."  INDs are Investigational
 New Drug applications to the U.S. Food and Drug Administration seeking
 approval to begin testing in humans.
     Oral mucositis is a problem for cancer patients when radiotherapy or
 chemotherapy reduces salivary production.  This results in suppressed immune
 function and begins to damage the mucosal barrier.  Mucositis affects
 approximately 40% of patients receiving chemotherapy.  Oral candidiasis is an
 AIDS-defining opportunistic illness.  The incidence of this disease in AIDS
 patients ranges from 10% to 20%.  Both mucositis and candidiasis cause pain,
 inability to eat, and increased risk of additional infection.  The total
 annual market for products to treat these two diseases is estimated at over
 $900 million.
     Richard Ekstrom, President of Demegen, stated: "The combination of the two
 companies significantly enhances shareholder value.  Not only has Demegen
 added products that are further along in clinical trials, but the transaction
 has also led to increased interest from pharmaceutical companies seeking
 product in-licensing opportunities."
     Demegen designs and develops novel peptides, proteins and genes for the
 treatment of infections, cancer, cystic fibrosis, multi-drug resistant
 bacteria and fungi.  In addition to pharmaceutical products, applications also
 include enhanced agricultural products.  Demegen's web site is
 www.demegen.com.
 
     This press release contains forward-looking statements within the meaning
 of The Private Securities Litigation Reform Act of 1995 (the "Act").  In
 particular, when used in the preceding discussion, the words "plan,"
 "confident that," "believe," "expect," or "intend to," and similar conditional
 expressions are intended to identify forward-looking statements within the
 meaning of the Act and are subject to the safe harbor created by the Act.
 Such statements are subject to certain risks and uncertainties and actual
 results could differ materially from those expressed in any of the forward-
 looking statements.  Such risks and uncertainties include, but are not limited
 to, market conditions, general acceptance of the Company's products and
 technologies, competitive factors, the ability to successfully complete
 additional financings and other risks described in the Company's SEC reports
 and filings.
 
     Contacts:
     Demegen, Inc.
     Richard Ekstrom, President, or S. Robert Fatora, Ph.D., Chief
      Operating Officer, 412-241-2150, E-mail: info@demegen.com;
     www.demegen.com
     The Wall Street Group, Inc., 212-888-4848
 
 

SOURCE Demegen, Inc.
    PITTSBURGH, April 4 /PRNewswire/ -- Demegen, Inc.
 (OTC Bulletin Board:   DBOT), a biotechnology company specializing in the
 development of peptides for the treatment of infectious diseases and oncology,
 announced today that it has completed the second stage of the agreement to
 acquire the majority of the assets of Periodontix, Inc., a Watertown,
 Massachusetts clinical stage biopharmaceutical company, consistent with the
 terms previously announced on February 9, 2001.
     "The activities and events related to this transaction over the past three
 months have reinforced our decision to acquire this technology and the
 associated therapeutic product opportunities," stated S. Robert Fatora, Ph.D.,
 Chief Operating Officer of Demegen.  "We have added four active INDs
 associated with this technology to Demegen's product portfolio and expect to
 file a fifth IND this quarter.  All of these product opportunities are
 directed toward the treatment of oral infections; most notably mucositis and
 HIV-related fungal infections such as candidiasis."  INDs are Investigational
 New Drug applications to the U.S. Food and Drug Administration seeking
 approval to begin testing in humans.
     Oral mucositis is a problem for cancer patients when radiotherapy or
 chemotherapy reduces salivary production.  This results in suppressed immune
 function and begins to damage the mucosal barrier.  Mucositis affects
 approximately 40% of patients receiving chemotherapy.  Oral candidiasis is an
 AIDS-defining opportunistic illness.  The incidence of this disease in AIDS
 patients ranges from 10% to 20%.  Both mucositis and candidiasis cause pain,
 inability to eat, and increased risk of additional infection.  The total
 annual market for products to treat these two diseases is estimated at over
 $900 million.
     Richard Ekstrom, President of Demegen, stated: "The combination of the two
 companies significantly enhances shareholder value.  Not only has Demegen
 added products that are further along in clinical trials, but the transaction
 has also led to increased interest from pharmaceutical companies seeking
 product in-licensing opportunities."
     Demegen designs and develops novel peptides, proteins and genes for the
 treatment of infections, cancer, cystic fibrosis, multi-drug resistant
 bacteria and fungi.  In addition to pharmaceutical products, applications also
 include enhanced agricultural products.  Demegen's web site is
 www.demegen.com.
 
     This press release contains forward-looking statements within the meaning
 of The Private Securities Litigation Reform Act of 1995 (the "Act").  In
 particular, when used in the preceding discussion, the words "plan,"
 "confident that," "believe," "expect," or "intend to," and similar conditional
 expressions are intended to identify forward-looking statements within the
 meaning of the Act and are subject to the safe harbor created by the Act.
 Such statements are subject to certain risks and uncertainties and actual
 results could differ materially from those expressed in any of the forward-
 looking statements.  Such risks and uncertainties include, but are not limited
 to, market conditions, general acceptance of the Company's products and
 technologies, competitive factors, the ability to successfully complete
 additional financings and other risks described in the Company's SEC reports
 and filings.
 
     Contacts:
     Demegen, Inc.
     Richard Ekstrom, President, or S. Robert Fatora, Ph.D., Chief
      Operating Officer, 412-241-2150, E-mail: info@demegen.com;
     www.demegen.com
     The Wall Street Group, Inc., 212-888-4848
 
 SOURCE  Demegen, Inc.