PHARMACOPEIA EARNS MILESTONE PAYMENT FROM WYETH.

Pharmacopeia (Nasdaq:PCOP), Princeton, N.J. an innovator in the discovery and development of novel small molecule therapeutics, has announced that it has received a milestone payment from Wyeth Pharmaceuticals, a division of Wyeth (NYSE:WYE), for progress made in identifying a systemically administered inhibitor of JAK3 kinase. The compound is being evaluated for the treatment of immunological and inflammatory diseases.

"We are pleased with the progress Wyeth and Pharmacopeia have made in advancing this program," said Joseph A. Mollica, Ph.D., chairman of the board and Interim president and CEO of Pharmacopeia. "The advances are critical to the growth of our JAK3 inhibitor program, and we will continue working closely with Wyeth to realize the therapeutic potential of JAK3 inhibitor-based products."

JAK3 is selectively expressed in certain hematopoietic cells and is involved in T-cell activation. The inhibition of JAK3 kinase has been shown to modulate disease outcomes in both preclinical animal models and clinical studies. Potential indications for an inhibitor of JAK3 include rheumatoid arthritis, transplantation and psoriasis.

In 2006, Pharmacopeia licensed certain rights to its JAK3 program to Wyeth under a Research and License Agreement. Under the agreement, each company has the exclusive right to develop and commercialize products resulting from the collaboration. Pharmacopeia retains the exclusive right to develop and commercialize therapeutic products for the treatment of dermatological and ocular diseases via topical administration, and Wyeth retains the development and commercialization rights for all other indications and routes of delivery. Pharmacopeia receives research funding and is eligible to receive additional payments upon Wyeth's achievement of certain development, regulatory and commercialization milestones, as well as royalties on the net sales of any products commercialized by Wyeth under the collaboration.

About Pharmacopeia

Pharmacopeia is a clinical development stage biopharmaceutical company dedicated to discovering and developing novel small molecule therapeutics to address significant medical needs. The company has a broad portfolio of clinical and preclinical candidates under development internally or by partners including nine clinical compounds in Phase 2 or Phase 1 development addressing multiple indications including hypertension, diabetic nephropathy, muscle wasting, inflammation and respiratory disease. The company is leveraging its fully integrated drug discovery platform to sustain the growth of its development pipeline. Pharmacopeia has established strategic alliances with major pharmaceutical and biotechnology companies, including Bristol-Myers Squibb, Celgene, Cephalon, GlaxoSmithKline, Schering-Plough, and Wyeth Pharmaceuticals.

For more information, visit http://www.pharmacopeia.com or call 609/452-3643.