PRECLINICAL DEVELOPMENT We have three compounds currently in preclinical development for the treatment of central nervous system disorders. The first, DOV 22,047, is believed to act at a specific GABA(A) receptor subtype and is under development for the treatment of panic disorder. The second compound, DOV 21,947 and is a triple uptake inhibitor under development to treat depression. The third compound, DOV 102,677, is a selective dopamine uptake inhibitor that may be used in the treatment of attention deficit disorder and Parkinson's disease. CARDIOVASCULAR DISORDERS DOV DILTIAZEM. DOV diltiazem, our proprietary formulation of diltiazem, is our product candidate for the treatment of angina and hypertension. Diltiazem belongs to a well-known class of drugs called calcium channel blockers. DOV diltiazem combines an immediate release component with 42 <Page> an extended release component in order to provide improved blood levels throughout the day compared to currently marketed diltiazem products. Chronic stable angina, or angina pectoris, refers to recurring severe constricting pain in the chest due to inadequate blood supply to the heart caused by heart disease. Angina attacks are more likely to occur during the morning and afternoon hours. Likewise, hypertension is greater in the morning hours. According to 1999 practice guidelines published by the American College of Cardiology/American Heart Association/American College of Physicians-American Society of Internal Medicine, chronic stable angina was estimated to have affected over 16.5 million people in the United States. According to Decision Resources, high blood pressure or hypertension was estimated to affect over 50 million people in the United States in 1999. Calcium channel blockers remain the standard-of-care for treatment of chronic stable angina and hypertension and continue to be highly endorsed by the medical community. Although comparative studies have demonstrated equivalent anti-angina effects for many marketed calcium channel blockers, a lower incidence of side effects with diltiazem was often reported in these studies. According to IMS figures for 2000, total sales of diltiazem in the United States were $981 million. In an effort to provide both therapeutic blood levels of diltiazem for longer periods of time and improved patient compliance, several slow or extended release preparations of diltiazem have been developed for the treatment of hypertension and chronic stable angina. However, these commercially available, once-daily, extended release formulations produce only a partial reduction of chronic stable angina. According to published studies, currently marketed diltiazem products such as Tiazac, Cardizem CD and Dilacor XR only reduce the number of angina attacks by approximately 50% - 60% when given at FDA-approved therapeutic doses. We believe incomplete reduction in angina demonstrated by current treatments may be the result of inadequate blood levels of the drug in the morning hours, when approximately half of angina attacks occur. Experts in chronic stable angina have confirmed their dissatisfaction with the ability of current extended release products to adequately treat many of their patients on a once-a-day basis. We believe that DOV diltiazem will reduce morning angina attacks to a significantly greater extent than commercially available products because of its combination of immediate and extended release components. Data from three Phase I trials indicate that our formulation produced clinically relevant blood levels within 30 minutes of administration and resulted in higher blood levels in the morning than Tiazac. We plan to begin a Phase III clinical trial by the end of 2002 comparing our formulation to placebo and a currently marketed diltiazem formulation. UROLOGICAL DISORDERS We are evaluating bicifadine and DOV 102,177, a structurally related molecule, in preclinical studies for stress incontinence. Urine leakage that occurs during exercise, coughing, laughing or lifting is referred to as stress incontinence. This condition results from a weakness or anatomical defect in the lower urinary tract, often as a result of childbirth, weight gain or surgery. The Simon Foundation for Continence reports that approximately 200 million people worldwide are affected by urinary incontinence and that approximately 65 million women worldwide are affected by stress incontinence. While not life threatening, stress incontinence has a significant impact on quality of life, particularly in the aging female population. At present, there are no approved drug therapies specifically for stress incontinence. 43 <Page> The function of the lower urinary tract is controlled by muscles that are, in turn, controlled by nerves throughout the body. Several neurotransmitters, including serotonin, norepinephrine and glutamate, are thought to play key roles in regulating the storage and release of urine via their actions on the brain. We believe the neurochemical profile of bicifadine, with its unique ability to increase synaptic levels of norepinephrine and serotonin, as well as to block glutamate transmission through a specific subtype of glutamate receptor, makes it a potential candidate for use in the treatment of stress incontinence. Bicifadine is active in a preclinical model used to assess the potential effectiveness of drugs for the treatment of stress incontinence. |