Genelabs Receives Broad Patent For Gene-Regulating Drugs

Patent Covers Therapeutic Methods for Potential New Class of Drugs

REDWOOD CITY, Calif., Jan. 22 /PRNewswire/ -- Genelabs Technologies, Inc. (Nasdaq: GNLB) announced that it has received United States Patent No. 5,578,444 for "Sequence-Directed DNA-Binding Molecules Compositions and Methods." The patent covers therapies in which a small-molecule drug will act by binding to a sequence-specific region of a gene and displacing a regulatory protein from its binding site, potentially creating an entirely new field of drugs for the regulation of disease-associated genes. The patent specifically claims a method for altering the binding characteristics of a DNA-binding protein (e.g., a transcription factor) by adding a small-molecule drug that binds to a target region in the DNA that is adjacent to but does not overlap the regulatory factor binding site by greater than four base pairs.

Cynthia Edwards, Ph.D., Vice President, Research, said, "This is a significant patent for Genelabs because we believe that, to achieve gene specificity and correspondingly low toxicity, it is necessary to target the sequences adjacent to or overlapping regulatory protein binding sites, rather than targeting regulatory protein binding sites directly. The issued claims cover what we believe will be a unique therapeutic method for regulating genes by this mechanism. Our proprietary technology places Genelabs at the forefront of the research efforts to discover this new class of therapeutics."

Genelabs' drug discovery program is focused on the development of small-molecule drug candidates that function by displacing DNA-binding regulatory proteins (such as transcription factors), causing a desired alteration in gene expression. While the knowledge base of gene structure and function is growing at a rapid pace, small-molecule drugs targeted at the regulation of specific genes have not yet been commercialized. Genelabs' Merlin(TM) technology is designed to enable targeting small molecules at the DNA level to selectively regulate gene expression. Merlin is also covered by US and foreign patents.

Merlin provides a missing link between the knowledge gained from the field of genomics and the multitude of combinatorial and biological libraries found in the pharmaceutical industry. Its potential usefulness as a drug discovery tool is likely to be applicable to most fields of medicine including cancer, infectious disease, cardiovascular disease, autoimmune and inflammatory diseases and other metabolic disorders.

Genelabs recently announced its first major collaboration with DuPont Merck Pharmaceutical Company to jointly develop small molecule gene-regulating drugs. The companies will jointly conduct a drug discovery program on a number of undisclosed gene targets. Because of the very broad potential for gene-regulating drugs, Genelabs believes that the partnership with DuPont Merck will provide the necessary infrastructure to efficiently undertake research, development, manufacturing and commercialization of this new class of therapeutics.

Genelabs Technologies, Inc. is a global biopharmaceutical and diagnostics company focused on gene-regulating drug discovery; infectious diseases including hepatitis; and immunological disorders including lupus. The company's lead pharmaceutical compound, GL701, is in Phase III clinical trials as a new therapy for systemic lupus erythematosus. The lead research program is based on its proprietary enabling technology, Merlin, for creating gene-specific, small organic, DNA-binding molecules. Additional research efforts are underway in the area of genomics for the identification of novel immunomodulatory genes. Genelabs is located in Redwood City, California, with operations in Geneva, Taiwan and Singapore.

Other than statements of historical fact, this press release contains statements which are forward looking and are subject to a number of uncertainties that could cause actual results to differ materially from the statements made, including risks associated with the success of research and product development programs, the regulatory approval process, sales of diagnostic products and competitive products. Please see the Company's 1995 Forms 10-K and 10-K/A and Form 10-Qs for certain information about risks associated with clinical trials, research and product development programs, intellectual property rights and other risks which may affect the Company.

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SOURCE Genelabs Technologies Inc.

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/CONTACT: Debra Catz Bannister, Vice President, Corporate Communications and Investor Relations of Genelabs, 415-369-9500, ext. 424/

(GNLB)

CO: Genelabs Technologies Inc. ST: California IN: MTC SU: PDT

RB -- SFW020 -- 0404 01/22/97 07:55 EST http://www.prnewswire.com