RNS Number:3705N
Profile Therapeutics PLC
10 July 2003


For Immediate Release:                                       07:00, 10 July 2003


    Agreement between Profile Therapeutics plc and Breath Limited Formalised


                 Profile forms joint venture to access US market


Profile Therapeutics plc ("Profile"), which develops and commercialises
specialist inhaled therapies, and Breath Limited ("Breath") are today delighted
to announced that the joint venture ("JV"), previously announced in March 2003,
has now been formalised, giving Profile access to the US Market.


Breath is a privately-owned manufacturer of sterile and respiratory
pharmaceuticals and a subsidiary of Arrow Group A/S, which is a significant
privately-owned international group of generic pharmaceutical companies.


Under the terms of the JV, Profile and Breath will develop and market a range of
respiratory products for sale across the North American homecare market. It is
anticipated that the JV will commence US sales as soon as H1 2005. Profile and
Breath will share costs, revenues and profits associated with providing
proprietary formats of Breath's generic drugs that will be used in conjunction
with Profile's novel Miniature Intelligent Inhaler system.


The first drug formats to be marketed will include the mainstay treatments for
severe asthma and chronic obstructive pulmonary disease, including albuterol
(salbutamol), ipratropium bromide and an inhaled corticosteroid. It is the
intention of both parties to expand this range of products and treatments over
time.

This venture is of particular significance to Profile as it is its first step
into the North American market for respiratory drugs. Profile estimates the
value of drugs in nebule form to be in excess of $1.0 billion per annum and,
through working with Breath, hopes to be able to secure a significant percentage
of this market.


Commenting on today's announcement, John Lisle, CEO of Profile, said:


"This agreement is an exciting combination of Profile's unique technology, in
the form of our Intelligent Inhaler, and our expertise in the delivery of
respiratory medicines, together with the Arrow Group's capabilities in
formulating and developing nebulised drugs. Entry to the North American market
is a cornerstone of our growth strategy."


                                    - ENDS -


For further information, please contact:

Profile Therapeutics                                         Tel: 0870 770 2116
John Lisle, Chief Executive Officer

Buchanan Communications                                      Tel: 020 7466 5000
Nicola How / James Strong


Notes to Editors:


Profile Therapeutics plc develops and commercialises specialist inhaled
therapies to improve the treatment of respiratory patients. Its first drug
PromixinTM, an inhaled antibiotic for the treatment of cystic fibrosis, was
launched in the UK in March 2003.


Profile's core patient groups are the young, the elderly and individuals with
severe respiratory impairment. The diseases targeted by Profile include: cystic
fibrosis, severe asthma, emphysema, chronic bronchitis and other conditions
classified as Chronic Obstructive Pulmonary Disease ("COPD").


These patients typically use nebulisers to deliver their drugs as they are not
best served by the mass market Metered Dose Inhalers (MDIs) and Dry Powder
Inhalers (DPIs). Profile has developed proprietary innovative delivery systems
using its "intelligent inhaler" technology known as Adaptive Aerosol Delivery
technology or AAD. These systems automatically respond to individual patients'
breathing patterns to deliver a precise dose and have been shown under long-term
clinical trials to significantly enhance patient compliance to therapy.


Breath Limited is a subsidiary of the Arrow Group A/S, a significant
privately-owned pharmaceutical company focused on the international provision of
generic drugs. Breath is a specialist pharmaceutical company formed for the
purpose of supplying world markets with sterile and respiratory drugs. Breath
has already achieved a significant "first to file" sterile eye product in the
USA and elsewhere.


The Arrow Group was founded in 2001 by Tony Tabatznik, the founder and former
Chairman of Merck Generics, together with many of the key employees of Merck
Generics, who grew that business to annual sales of over $750 million.


The Arrow Group has fully operational pharmaceutical companies in the UK,
Continental Europe, Australasia, USA, Canada and South America. The Australian
Arrow subsidiary was floated on the Sydney Stock Exchange in October 2002.






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

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