Press Releases

Pharmacopeia Drug Discovery, Inc. (NASDAQ: PCOP) and Celgene Corporation (NASDAQ: CELG) today announced the nomination for development of a compound resulting from the ongoing collaboration between the two companies.

In the collaboration, initiated in 2003, Pharmacopeia scientists identified lead compounds - from Pharmacopeia's proprietary collection of 7.5 million drug-like small-molecules - acting at Celgene's inflammation-related kinase target. The optimization of the potent and selective lead compounds to a pre-clinical development compound took little more than a year, so that the total time taken from target selection through to development was well under two years. This achievement is a testament to both companies' platforms, experience and determination to drive programs from concept to clinic with industry-leading levels of speed and efficiency.

Pharmacopeia is entitled to on-going payments to the extent Celgene advances the program into and through clinical development, including annual payments and milestone payments at classical value inflection points. Pharmacopeia is further entitled to royalties on commercial sales of any products resulting from this collaboration.

"We are delighted to be able to make this announcement with Celgene so early in the collaboration." said Les Browne, Ph.D., President and Chief Executive Officer of Pharmacopeia. "The target is in our chosen therapeutic area of immunological and inflammatory diseases, and the opportunity to work with an emerging leader like Celgene has helped us build expertise and experience that we believe will positively impact our ability to drive our own wholly-owned programs into the clinic."

"Celgene is pleased with the outcome of our first collaborative program with Pharmacopeia. We have selected an indication for which there is immediate need for a new drug, and this will help us achieve a corporate goal of increasing access to life-enhancing drugs to patients in need through research and innovation," said Alan J. Lewis, Ph.D., President of Celgene's San Diego Research Division.

Pharmacopeia Drug Discovery, Inc. (www.pharmacopeia.com) is a biopharmaceutical company focused on the creation of new small molecule therapeutics to address significant unmet medical needs. Using proprietary technologies and processes, Pharmacopeia identifies, optimizes, and develops novel drug candidates in collaboration with major pharmaceutical and biotechnology companies, and, increasingly, through its own internally-funded drug discovery programs, which are focused primarily on immunobiology and immunological diseases. Pharmacopeia's later stage portfolio currently comprises multiple partnered programs that have been advanced into human clinical trials with further programs in late-stage pre-clinical development. Additionally, Pharmacopeia has approximately forty partnered and internal programs in discovery, which are expected to drive the company's clinical portfolio in the future. Pharmacopeia is headquartered in Princeton, New Jersey.

About Celgene

Celgene Corporation, headquartered in Summit, New Jersey, is an integrated global biopharmaceutical company engaged primarily in the discovery, development and commercialization of novel therapies for the treatment of cancer and inflammatory diseases through gene and protein regulation. For more information, please visit the Company's website at www.celgene.com.

When used anywhere in this document, the words "expects", "believes", "anticipates", "estimates" and similar expressions are intended to identify forward-looking statements. Forward-looking statements herein may include statements addressing future financial and operating results of Pharmacopeia. Pharmacopeia has based these forward-looking statements on its current expectations about future events. Such statements are subject to risks and uncertainties known and unknown, which could cause actual results and developments to differ materially from those expressed or implied in such statements. These forward-looking statements include, but are not limited to, statements about the successful implementation of Pharmacopeia's strategic plans, the development by Pharmacopeia and regulatory and market acceptance of new products, the establishment and continuation by Pharmacopeia of drug discovery collaborations and the results of Pharmacopeia's internal proprietary drug discovery programs, Pharmacopeia's ability to raise additional capital, the obsolescence of existing products, the resolution of existing and potential future patent issues, additional competition, changes in economic conditions, and other risks described in documents Pharmacopeia has filed with the Securities and Exchange Commission, including its registration statement on Form 10, Reports on Form 10-Q filed on June 2, 2004, August 6, 2004 and November 8, 2004 and subsequent filings under the Securities and Exchange Act of 1934. All forward-looking statements in this document are qualified entirely by the cautionary statements included in this document and such filings. These risks and uncertainties could cause actual results to differ materially from results expressed or implied by forward-looking statements contained in this document. These forward-looking statements speak only as of the date of this document. Pharmacopeia disclaims any undertaking to publicly update or revise any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Contact Pharmacopeia:
Simon M. Tomlinson, PhD
Senior Vice President, Business Development
(609) 452-3649
irreq@pharmacopeia.com

Contact, Celgene:
Brian Gill
Director, IR/PR
(908) 673-9530