Chi-Med Announces Development Agreement with Procter & Gamble for the Discovery and Development of New Active Ingredients for Beauty Products

London: Monday, 6 November 2006: Chi-Med today announces its wholly-owned drug R&D subsidiary Hutchison MediPharma Limited (“Hutchison MediPharma”) has signed a research and development agreement with the Procter & Gamble Company (“Procter & Gamble”), P&G Beauty division to discover and develop new active ingredients from Traditional Chinese Medicine and botanical sources for incorporation into beauty care products.

The agreement is for two years, during which the Chi-Med group will screen its collection of plant extracts against beauty care targets nominated by Procter & Gamble and conduct natural product chemistry to characterise and optimise active components that arise from the screenings.

Procter & Gamble will have the rights to commercialise any resulting products in the area of beauty care. Procter & Gamble is a global market leader in Beauty and competes in markets which comprise over $220 billion in global retail sales. The Chi-Med group will be the exclusive supplier of active components for any beauty care products developed as a result of the collaboration and will retain the rights for any healthcare applications.

Mr. Christian Hogg, CEO of Chi-Med, said:
“The agreement is a recognition of the quality of Chi-Med’s research and development capabilities and illustrates the wide potential range of their application. It will generate near-term income and offers the prospect of longer term revenues from licensing and/or supplying active ingredients for beauty care products and from their use outside beauty care.”

Chi-Med sees Traditional Chinese Medicine as a major, under-exploited reservoir for the development of novel drugs for the global pharmaceutical market and for developing new products for the global health and beauty consumer markets. Plants, particularly those that have been used as traditional medicines, have a long-established record of efficacy and safety.

Dr. Samantha Du, Chief Scientific Officer and Executive Vice President of Chi-Med said:

“Chi-Med has established truly world-class screening technologies and Procter & Gamble is a global leader in the field of beauty care. We look forward to working together to pursue products that may bring breakthrough benefits to consumers. Plants, particularly those that have been used as traditional medicines, represent an exciting opportunity for beauty care based on their established human safety and efficacy profiles.”