- The collaboration will focus on new CNS therapeutics based upon defined ion
channel targets

- NeuroSearch is eligible to receive equity payments and research funding of up
to USD 30 million (DKK 175.1 million) over the three years of the alliance

- The alliance builds upon know-how and intellectual property from both
NeuroSearch and Lilly


NeuroSearch has signed an agreement with Eli Lilly and Company (Lilly) to form
a three-year drug discovery and development alliance to investigate a defined
number of undisclosed ion channel targets for their potential in treating
various central nervous system (CNS) disorders. The aim of the collaboration is
to discover and develop new medicines based on novel approaches to specific ion
channel modulation. The collaboration will comprise intellectual property and
know-how from both NeuroSearch and Lilly.

Under the terms of the agreement, NeuroSearch is eligible to receive up to USD
13 million (DKK 75.9 million) from Lilly in upfront fees and research funding
over the next three years, of which USD 5 million (DKK 29.2 million) will be
paid up front. Lilly will also make a USD 17 million (DKK 99.2 million) equity
investment in NeuroSearch.

NeuroSearch will be responsible for the drug discovery programmes under the
collaboration and potentially early development of novel drug candidates. Lilly
will have various options to exercise license rights to individual compounds
covered by the agreement and related intellectual property. Upon exercise of
license rights, Lilly will be responsible for all subsequent development and
commercialisation activities. For each product, successfully developed and
commercialized under the alliance, NeuroSearch may be entitled to milestone
payments of up to USD 320 million (DKK 1,868.2 million) plus royalties on the
product's global sales.

Flemming Pedersen, CEO of NeuroSearch commented:
“We are very proud to have agreed on this broad based collaboration with Lilly
for the discovery and development of new and better medicines based on novel
approaches to ion channel modulation - being one of NeuroSearch's core areas of
expertise. Our collaboration is structured to secure both a balanced risk
sharing and very attractive long term revenue, if our efforts are successful,
as well as significant near term financing to NeuroSearch.”

William Chin, M.D., Lilly vice president, discovery research and clinical
investigation commented:
“We are excited to partner with NeuroSearch, whose expertise in ion channel
modulation will bolster our efforts to discover and develop promising CNS
therapies. The equity stake we are taking in NeuroSearch is also an excellent
example of our corporate strategy as a fully integrated pharmaceutical network
(FIPNet), where we are collaborating with researchers beyond our walls to
deliver improved outcomes to individual patients."

The issue of new shares to Lilly
Lilly's USD 17 million (DKK 99.2 million) equity investment will be made
through subscription of 530,745 new NeuroSearch shares of DKK 20 nominal value
each. The shares will be subscribed at an agreed price of DKK 187 per share of
DKK 20 nominal value each. The subscription price is calculated as the average
closing price of NeuroSearch's shares for the 30 trading days prior to signing
the agreement plus an agreed, undisclosed premium.

The 530,745 new shares will be issued without pre-emption rights for the
company's current shareholders. The issue has been decided by NeuroSearch's
Board of Directors on the basis of Article 5 of NeuroSearch's Articles of
Association authorising the Board of Directors to increase the share capital of
the company. The new shares will rank pari passu with and have the same rights
as the existing shares in the company.

Registration, admission to trading and official listing of the new shares
The new shares will be registered with VP Securities Service
(‘Værdipapircentralen'). The new shares will be admitted to trading and
official listing on the Nasdaq OMX Copenhagen exchange under the ISIN code of
the company's existing shares (ISIN code DK0010224666) once they have been
registered with the Danish Commerce and Companies Agency ('Erhvervs- og
Selskabsstyrelsen'). Admission to trading and official listing of the new
shares is expected to take place no later than on 4 March 2009.

NeuroSearch's issuing agent is Nordea Bank Danmark A/S.

Expected timetable for the capital increase

17 Feb 2009
Decision by NeuroSearch's board of directors to exercise its authorisation to
increase the share capital

17-27 Feb 2009
Payment.
Registration of the new shares with the Commerce and Companies Agency as well
as issue and registration of the new shares with VP Securities Services.

No later than 4 March 2009
Admittance for trading and official listing of the new shares with the Nasdaq
OMX Copenhagen exchange.

NeuroSearch will disclose financial guidance for 2009 in connection with the
company's 2008 full year announcement on 4 March 2009.


Thomas Hofman-Bang
Chairman of the Board


Contact persons:
Flemming Pedersen, CEO, telephone: +45 4460 8214 or +45 2148 0118
Hanne Leth Hillman, Vice President, Director of Investor Relations & Corporate
Communications, telephone: +45 4460 8212 or +45 4017 5103



NeuroSearch - Company profile
NeuroSearch (NEUR) is a Scandinavian biopharmaceutical company listed on Nasdaq
OMX Copenhagen. The company's core business covers the development of novel
drugs, based on a broad and well-established drug discovery platform focusing
on ion channels and CNS disorders. A substantial share of NeuroSearch's
activities is partner financed through an alliance with Eli Lilly and Company
and collaborations with GlaxoSmithKline (GSK), Abbott and Astellas. The drug
pipeline comprises 12 clinical (Phase I-III) development programmes: ACR16 for
Huntington's disease (Phase III), tesofensine for obesity and type 2 diabetes
(Phase III ready), NS2359 for depression (Phase II) and ADHD (Phase II) in
partnership with GSK, ABT-894 for ADHD (Phase II) in partnership with Abbott,
ACR16 for schizophrenia (Phase I) in partnership with Astellas, ACR325 for
Parkinson's disease (Phase II in preparation) and bipolar disorder (Phase II in
preparation), ABT-107 and ABT-560 for the treatment of various CNS disorders -
both (Phase I) in collaboration with Abbott, ACR343 for Parkinson's disease
(Phase I) and NSD-788 for anxiety/depression (Phase I). In addition,
NeuroSearch has a broad portfolio of preclinical drug candidates and holds
equity interests in several biotech companies.

fonds.03-09 - lilly agreement - uk_final.pdf