Acambis announces the results of a strategic review to prioritise its extensive pipeline of development-stage projects. As a consequence of this review, we are restructuring our research operations.

In March 2003, Acambis became part of the select group of UK biotechnology companies that achieved profitability and, at the same time, outlined a strategy for remaining sustainably profitable. Alongside that, it also has a strategy to gain the maximum value from its portfolio by retaining product rights as long as possible. With numerous projects in clinical and pre-clinical development, it has recognised that it is impractical to invest the required resources in all of the projects. This review enabled to identify which projects are most likely to generate the maximum return to Acambis.

The review has identified the following high priority projects:

-Smallpox vaccine franchise
-ACAM2000
-Modified Vaccinia Ankara (MVA)
-Vaccinia Immune Globulin (VIG)
-ChimeriVax-West Nile vaccine
-Travel/Endemic vaccines franchise
-Vivotif
-Arilvax
-ChimeriVax-JE
-ChimeriVax-Dengue
-C difficile vaccine

Of these nine projects, Acambis expects to be taking seven through clinical trials and/or the regulatory approval process during 2004. The other two, Vivotif and VIG, are, respectively, a licensed oral typhoid vaccine to which we have North American marketing rights, and a hyperimmune globulin associated with smallpox vaccination that is being developed by Cangene Corporation and for which we act as agent for sales outside North America and Israel.

Acambis plans to pursue the above development projects aggressively and to invest the necessary resources to ensure these projects progress as rapidly as possible through to licensure. Where practicable, Acambis will retain full product rights up to and including the point of licensure.