Amorfix Life Sciences and Biogen Idec to Collaborate on Research for ALS Disease 

Source: Amorfix Life Sciences Ltd.
08-03-06

Amorfix Life Sciences Ltd. (TSXV: AMF), an emerging Canadian theranostics company, announced today that it has entered into a research and investment agreement with Biogen Idec (NASDAQ: BIIB) of Cambridge, Massachusetts, which includes an option to license the exclusive worldwide rights to Amorfix's technology to develop and commercialize therapeutic products directed against the neurodegenerative disease Amyotrophic Lateral Sclerosis (ALS). Amorfix will conduct a planned research program with operational support and investment from Biogen Idec.

On closing, Biogen Idec subscribed for common shares of Amorfix in the amount of US$375,000 representing 289,187 common shares at a price of Cdn $1.46 per common share. These shares are subject to a four-month hold period. Over the period of the option, Biogen Idec may subscribe for additional common shares of Amorfix in the amount of US$375,000 based on the achievement of predefined research milestones. If Biogen Idec exercises its option, Amorfix will receive an upfront payment and potential milestone payments in excess of US$25 million under the license agreement. Amorfix will also receive royalties on commercial product sales. If the option is exercised, Biogen Idec will be responsible for completing preclinical and clinical development, regulatory approvals, manufacturing and commercialization.

"To ensure a rapid translation of our technology to clinical trials, we chose to partner with a world-leading biotechnology company that will bring significant resources and expertise in the preclinical and clinical validation of Amorfix's approach to treatments for neurodegenerative diseases", stated Dr. Neil Cashman, Chief Scientific Officer, Amorfix. "This new relationship with Biogen Idec confirms the quality of Amorfix's program and validates the company's strategy to use its core technology on aggregated misfolded proteins to build a portfolio of diagnostic and therapeutic products", added Dr. George Adams, Chief Executive Officer, Amorfix.

"The partnering of this early-stage technology with a major biotech firm shows what effective management and excellent science can achieve in a short period of time. This collaboration provides strong support for a considered expansion of the company's therapeutic development strategy", said Graham Strachan, Chair of the Board of Amorfix.

Amorfix will hold a conference call Thursday, August 3, 2006 at 1:00 p.m. ET to discuss this announcement and other corporate developments. To access the conference call by telephone, dial 1-800-814-4941. A replay of the conference call will be available by telephone on August 3, 2006 through August 10, 2006. To access the replay, dial +1-416-640-1917 or 1-877-289-8525 and enter reservation number 21199298 followed by the number sign (Number sign).

Amorfix is an emerging theranostics company focused on the diagnosis and treatment of neurodegenerative diseases, where aggregated misfolded proteins are prevalent. These include aggregated misfolded prion protein which makes up "prions," the infectious agents of the Transmissible Spongiform Encephalopathies (TSE), such as Bovine Spongiform Encephalopathy (BSE or "mad cow disease") and the human form, variant Creutzfeldt-Jakob Disease (vCJD), as well as degenerative diseases such as Alzheimer's Disease (AD), Amyotrophic Lateral Sclerosis (ALS) and Parkinson's Disease (PD). Amorfix was formed to commercialize epitope protection technologies and related discoveries to become the world leader on AMP diseases. The company will use this new knowledge to develop diagnostic kits, therapeutics and preventative therapies for AMP diseases.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This information release may contain certain forward-looking information. Actual future results may differ materially from those contemplated. The risks, uncertainties and other factors that could influence the actual results are described in documents filed with regulatory authorities.

For further information

Dr. George Adams, President and CEO, Amorfix Life Sciences Ltd., (416) 482-3812, info@amorfix.com
James Parsons, CFO, Amorfix Life Sciences Ltd., (416) 482-3814

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