Re Joint Venture

    YM Biosciences Licenses Monoclonal Antibody, Nimotuzumab, to Daiichi
Pharmaceutical for Japan

    MISSISSAUGA, ON, July 31 /CNW/ - YM BioSciences Inc. (AMEX:YMI, TSX:YM,
AIM:YMBA), a company engaged in the acquisition, development and
commercialization of oncology and acute care products, today announced that
its majority owned subsidiary, CIMYM BioSciences Inc. (CIMYM), has licensed
development and marketing rights in Japan for its anti-EGFR humanized
antibody, nimotuzumab, to Daiichi Pharmaceutical Co., Ltd. (a wholly owned
subsidiary of DAIICHI SANKYO COMPANY, LIMITED, one of Japan's largest
pharmaceutical companies).
    Under the agreement, CIMYM will receive an up-front payment of
US$14.5 million and significant milestone payments at certain stages of
development for each of a number of indications as well as payments based on
supply of nimotuzumab and sales performance in the territory. Daiichi will
develop nimotuzumab for the Japanese market in several cancer indications.
    "This is an exceptional agreement that provides nimotuzumab with the
prospect of accessing the second largest pharmaceutical market in the world.
The license will result in a substantial broadening of the development and
commercialization efforts directed to our anti-cancer antibody," said David
Allan, Chairman & CEO of YM BioSciences.
    In July 2006, nimotuzumab was approved in India for the treatment of head
and neck cancer. Nimotuzumab is currently in a Phase IIl trial in Europe in
combination with radiation for the treatment of pediatric pontine glioma. A
trial in North America in pediatric pontine glioma is also currently in
design. Nimotuzumab is being variously developed in non-small cell lung
cancer, pediatric glioma and pancreatic cancer in Canada and Europe and YM is
preparing to pursue further clinical development of the drug in adult glioma
and colorectal cancer as well as a number of other indications. YM's licensor,
CIMAB SA, and its parent, the Center for Molecular Immunology, are conducting
trials with nimotuzumab in glioma, breast, esophageal, uterine cervix,
prostate and head and neck cancers. In the pediatric and adult trials in
Europe, the head & neck trial in India, and in trials in Canada and elsewhere,
the debilitating side effects of severe rash, diarrhea, conjunctivitis and
hypomagnesemia, evident in some or all of the other products in development
targeting the tyrosine kinase pathway, were not observed.

    About DAIICHI SANKYO COMPANY, LIMITED.
    DAIICHI SANKYO COMPANY, LIMITED was established on September 28, 2005 as
the joint holding company of two major Japanese pharmaceutical companies -
Sankyo Co., Ltd. and Daiichi Pharmaceutical Co., Ltd. DAIICHI SANKYO aims to
become a Global Pharma Innovator, continuously generating innovative drugs and
services and maximizing its corporate value. Sankyo and Daiichi Pharmaceutical
have experience developing and marketing one of the world's leading oncology
products, Irrinotecan Hcl, in Japan and have a broad range of major drug
products in that market, including the antihypertensive Olmetec(R) (olmesartan
medoxomil) and the synthetic antibacterial agent Cravit(R) (levofloxacin) and
are strongly promoting drug information provision activities. In addition to
cancer, both companies are established in the field of cardiovascular disease
and have used their cumulative knowledge and expertise as a foundation for
developing an abundant product lineup and R&D pipeline.
    For further details, please refer to the company Web site, at
http://www.daiichisankyo.co.jp/eng.

    Conference Call Notice
    YM BioSciences will be holding a conference call for Analysts and
Portfolio Managers to discuss the licensing agreement on Monday, July 31, 2006
from 11:00am EDT. To participate in the conference call, dial 416-644-3415 or
1-866-250-4910. The conference call will also be audio cast live and archived
for 90 days at www.ymbiosciences.com.

    Other drug development activities at YM BioSciences
    YM BioSciences Inc. is engaged in the acquisition, development and
commercialization of oncology and acute care products. Its lead drug,
tesmilifene, is a small molecule MDR-targeting agent that completed enrollment
of 723 patients with metastatic and recurrent breast cancer in September 2005.
The trial is the subject of a Special Protocol Assessment by the FDA and is
being conducted according to a sequential adaptive clinical design. The
sequential adaptive design allows for three interim analyses, of which the
second analysis is imminent, prior to a final fourth analysis. Therefore, a
total of four analyses are possible without statistical penalty. In addition,
YM has received FDA Fast Track designation for tesmilifene in advanced breast
cancer.
    Data on nimotuzumab as a monotherapy in patients that are refractory to
all treatment, principally in patients with colorectal cancer, in a trial
conducted at Princess Margaret Hospital in Canada, will be presented at the
18th EORTC-NCI-AACR Symposium on Molecular Targets and Cancer Therapeutics,
Prague, Czech Republic, November 7 - 10, 2006.
    In addition to nimotuzumab and tesmilifene, YM BioSciences is developing
AeroLEF(TM), a unique inhalation-delivered formulation of the established
drug, fentanyl, to treat acute pain including cancer pain. For AeroLEF,
preliminary results from its randomized Phase IIb trial will be presented at
the American Society of Anesthesiologists Annual Meeting, McCormick Place -
Chicago, IL, October 14 - 18, 2006. Final results from the trial are expected
before the end of the year. YM BioSciences is also developing its anti-GnRH,
anti-cancer vaccine, Norelin(TM), and owns a portfolio of preclinical
compounds.

    Except for historical information, this press release may contain
forward-looking statements, which reflect the Company's current expectation
regarding future events. These forward-looking statements involve risk and
uncertainties, which may cause but are not limited to, changing market
conditions, the successful and timely completion of clinical studies, the
establishment of corporate alliances, the impact of competitive products and
pricing, new product development, uncertainties related to the regulatory
approval process and other risks detailed from time to time in the Company's
ongoing quarterly and annual reporting.



For further information: Thomas Fechtner, The Trout Group LLC, Tel. (212)
477-9007 x31, Fax [phone], Email: tfechtner(at)troutgroup.com; James
Smith, the Equicom Group Inc., Tel. [phone] x 229, Fax [phone],
Email: jsmith(at)equicomgroup.com
(YM. YMI) (AIM: YMBA)

 



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