RNS Number:3923S
CeNeS Pharmaceuticals PLC
24 November 2003


CeNeS Pharmaceuticals plc


CeNeS strengthens its CNS pipeline by the acquisition of TheraSci Limited -
Assets acquired include an in-licensing deal with GlaxoSmithKline


Cambridge, UK 24th November 2003 - CeNeS Pharmaceuticals plc ("CeNeS" or "the
Company")(LSE:CEN) has today announced that it has agreed to acquire the UK
biotechnology company TheraSci Limited ("TheraSci") for up to #3.7m ("the
Acquisition"). Included in the assets of TheraSci is a simultaneous transaction
under which, GlaxoSmithKline ("GSK") has assigned to TheraSci all rights to
their programme developing novel short-acting sedatives for the use in day case
procedures.


Consideration for the Acquisition will be settled through the issue of up to
45,726,209 ordinary 1 pence shares in CeNeS ("New Shares") representing 22.2 per
cent of the existing share capital of the Company.


The Acquisition


* TheraSci operates a low risk approach to Central Nervous System ("CNS")
drug development by applying modern technologies to discover novel, superior
compounds for established drug targets. TheraSci has discovery and development
programmes focused on the development of drugs for the treatment of Parkinson's
disease, substance abuse and sleep disorders. TheraSci also has #1m in cash.


* The GSK sedative programme includes a lead and several back-ups. The
lead compound is in pre-clinical development and CeNeS believes that clinical
proof of concept may be achieved within 24 months. The compound is targeted to
the growing day case surgical and non-surgical procedures market.


   *TheraSci operates a virtual business model complementary to CeNeS.
    TheraSci's management has extensive big pharma and biotech expertise in
    discovery and business development and will join the CeNeS management team.


   *The enlarged CeNeS pipeline offers a highly focused, lower risk approach
    to the development of drugs for the treatment of pain, anaesthesia, and
    disorders of the CNS.


   *At completion of the Acquisition, TheraSci will have net assets of
    approximately #1.2 million, including free cash of #1 million.


   *Following the transaction CeNeS has sufficient funding for over 24
    months.





The CeNeS Chief Operating Officer and Finance Director, Neil Clark commented:


"CeNeS has strengthened and broadened its CNS focused pipeline by this
transaction. TheraSci's business model, reduced risk discovery and development
strategies and management expertise are a perfect fit with CeNeS' virtual
business model and late stage CNS clinical development focus. The GSK sedative
programme is particularly interesting being based on excellent science and
clinically validated mechanisms, it offers a lower-risk route into the rapidly
growing short surgical and non-surgical procedures market. The combined
pipeline's potential is exciting and CeNeS remains financially strong and
therefore well placed to deliver increased value to shareholders".



Alan Goodman, the Chairman of CeNeS, is also a director of Avlar Bioventures
Limited. One of the funds managed by Avlar Bioventures Limited is a significant
shareholder in TheraSci. As a result, the Acquisition has been treated as a
related party transaction (as defined in the AIM Rules). The independent
Directors, Neil Clark, Ronald Irwin and Dr Peter Johnson, having consulted with
Evolution Beeson Gregory Limited, CeNeS' nominated adviser, consider that the
terms of the Acquisition are fair and reasonable insofar as the Company's
shareholders are concerned.


Application will be made for the New Shares to be admitted to trading on AIM and
dealings are expected to commence on 27th November 2003.


For more information please contact:


CeNeS Pharmaceuticals plc

Neil Clark

Tel: +44 (0)1223 266466

Fax: +44 (0)1223 266467

Capital MS&L

Mary Clark

Tel: +44 (0)20 7878 3245

Fax: +44 (0)20 7878 3184


Evolution Beeson Gregory

Matt Wood

Tel: +44 (0)20 7071 4300


This news release contains forward-looking statements that reflect the Company's
current expectation regarding future events. Forward-looking statements involve
risks and uncertainties. Actual events could differ materially from those
projected herein and depend on a number of factors including the success of the
Company's research strategy, the applicability of the discoveries made therein,
the successful and timely completion of clinical studies and the uncertainties
related to the regulatory process.






Notes to Editors:


About CeNeS Pharmaceuticals

CeNeS is a biopharmaceutical company specialising in the development and
commercialisation of drugs for CNS and pain control. The company has development
assets targeting pain, Parkinson's disease and other CNS disorders and has a
portfolio of carried interests in assets that it has divested. The company is
based in Cambridge, England. For further information visit www.cenes.co.uk.










                      This information is provided by RNS
            The company news service from the London Stock Exchange

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