To: nigel bates who wrote (96 ) 8/24/2000 12:44:12 PM From: nigel bates Respond to of 539 ... "Drug Discovery The ability to generate and evolve large peptide and protein libraries provides Phylos with a valuable drug discovery tool for the pharmaceutical and biopharmaceutical industries. Phylos has applied the unique features of its proprietary PROfusion™ technology — speed, high-throughput, and diversity — to generate several distinct classes of libraries, typically having ( 1013 - 1014 ) members: * Proprietary antibody mimic libraries * Single-chain antibody libraries * Linear peptide libraries * Constrained peptide libraries The Company is developing these libraries in order to meet the need for affinity reagents that can address genome scale questions regarding the causes of diseases. Peptide Libraries Peptide libraries have a broad range of applications: * Identification of ligands for novel receptors * Phosphorylation motifs of unknown kinases * Peptidomimetic molecules * High-throughput epitope mapping * Identification of surrogate and potentially natural ligands of target proteins The Company has developed and validated several of the largest peptide libraries available for identifying peptides that bind specific protein targets, including linear, constrained loop, and cystine-knot libraries. Phylos has routinely generated high-affinity peptides with KDS in the range of 1-50 nM, to a wide variety of targets, including soluble receptors, enzymes, and cytokines, both for internal programs and in collaboration with its partners. Protein Libraries Phylos has developed a novel platform of small protein molecules that serve as pseudo-antibodies in a variety of biological and functional applications that normally employ monoclonal antibodies. One of these proprietary antibody mimics has advanced rapidly as a validated structure that consistently produces binders with high-affinity and specificity. These characteristics are critical in the Company’s PROfile™ chip development program, and in a number of other drug discovery and diagnostic applications. In addition, Phylos’ antibody mimics represent excellent leads as next-generation therapeutic candidates. The Company has built a strong intellectual property position around these molecules. Due to the lack of overlap with traditional antibody patents, these high-affinity antibody mimics represent a strategic advantage as research tools as well as in diagnostic and biotherapeutic applications. "