About PharmaNetics : Press Releases : BAYER CORPORATION SIGNS AGREEMENT WITH PHARMANETICS TO DEVELOP NEW PLATELET FUNCTION THERANOSTIC TEST

FOR IMMEDIATE RELEASE
March 1, 2000

BAYER CORPORATION SIGNS AGREEMENT WITH PHARMANETICS TO DEVELOP NEW PLATELET FUNCTION THERANOSTIC TEST

RALEIGH, N.C. and TARRYTOWN, N.Y. (March 1, 2000) - PharmaNetics, Inc. (NASDAQ NM: PHAR) and Bayer Diagnostics, announced today that Bayer Corporation has agreed to fund a research project to investigate the feasibility of developing a platelet function test to monitor the effect of platelet inhibitors(1).

The agreement initially calls for Bayer to provide funding of $850,000 for the Phase I feasibility studies that are projected to take 6-8 months. If feasibility is demonstrated, PharmaNetics and Bayer will enter into a definitive development and commercialization agreement that will establish the milestones for additional funding.

PharmaNetics believes that by modifying its dry chemistry technology the new platelet function test can be performed on the existing Bayer Diagnostics RapidPoint Coag™ platform utilizing a small sample of whole blood. If successful, the addition of this platelet function test to the menu would enable healthcare providers to monitor the effect of platelet inhibitors in addition to numerous other anticoagulants at the point of care on a single instrument platform. As more new anticoagulant therapies are adopted for use, a comprehensive test menu will become increasingly important and will translate into an important competitive advantage for both PharmaNetics and Bayer Diagnostics.

"This collaboration is important in helping to complete a comprehensive menu of coagulation tests on a single platform and will strengthen our partnership with Bayer Diagnostics," stated John Funkhouser, PharmaNetics President and CEO. "Earlier this year we announced FDA market clearance of Rapidpoint Accent, a high-dose heparin management system developed and manufactured by PharmaNetics, and marketed and sold by Bayer. We believe today’s agreement will extend the synergy between our research capabilities and Bayer’s commercial expertise."

The platelet function test will be developed specifically to assess GPIIb/IIIa platelet inhibition in response to drugs like Eli Lilly and Co’s Reopro™ (abciximab), and COR Therapeutics’ Integrilin™ (eptifibatide). These GPIIb/IIIa antiplatelet agents have demonstrated benefit in treating patients undergoing coronary interventions (e.g. PTCA and stent placement) and unstable angina. Pharmanetics estimates that approximately 2.5 million patients are candidates for intravenous antiplatelet therapy.

"We base our decision to fund this development on the extensive market research we conducted, which confirmed an unmet medical need for the test," said Fran Tuttle, Senior Vice President and General manager, Critical Care Diagnostics, Bayer Diagnostics. "Our research with physicians indicates that the availability of such a test will facilitate patient treatment and may improve outcomes."

PharmaNetics, Inc. develops, manufactures and markets rapid turnaround diagnostics to assess blood clot formation and dissolution. The Company develops tests based on its proprietary, dry chemistry Thrombolytic Assessment System for its principal target market of managing powerful new drug compounds, some of which may have narrow therapeutic ranges, as well as for monitoring routine anticoagulants. The Company’s therapeutic diagnostics are used to monitor the effect of antithrombotic agents in the treatment of angina, myocardial infarction (heart attack), stroke, deep venous thrombosis, and pulmonary and arterial emboli.

Headquartered in Tarrytown, New York, Bayer Diagnostics (www.bayerdiag.com) is one of the largest diagnostics businesses in the world. Bayer Diagnostics serves customers in 100 countries with an offering that includes diagnostics systems in five key segments: Critical Care Testing, Laboratory Testing, Point of Care Testing, Nucleic Acid Testing and Self-Testing. With more than 7,500 employees worldwide and 1998 sales of close to $1.2 billion, Bayer Diagnostics is a Business Group of the worldwide Bayer Group, a $31 billion chemical and pharmaceutical company based in Leverkusen, Germany.

This press release contains forward-looking statements regarding future events and the future performance of PharmaNetics that involve risks and uncertainties, such as risks related to market acceptance, clinical trials and dependence on third-party distributors and collaborative partners that could cause actual results to differ materially from those projected in the forward-looking statements. Information concerning these and other of the factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company’s SEC filings, including Form 10-K, Form 10-Q and Form 8-K reports.

(1) Platelet inhibitors prevent blood clotting or the formation of blockages within the coronary arteries.