+ + data and comment + +, page-53

re: + + completion of dosing in obesity trial + + Metabolic announces completion of dosing in obesity trial. For Release: 20 September 2004

Metabolic Pharmaceuticals Limited is pleased to confirm that dosing in its Phase 2b human clinical trial on obesity drug AOD9604 was completed last Friday, 17 September 2004.

The future timelines on this trial remain in accordance with the dates advised in previous announcements.

Next Update
A shareholder update detailing key trial milestones and reporting dates, together with recent developments, will be released to the market within the next week.
____________________

About Metabolic
Metabolic Pharmaceuticals Limited is a biotechnology company based in Melbourne, Australia, and listed on the Australian Stock Exchange (ASX: MBP).

The Company’s mission is to develop a pipeline of new pharmaceuticals for world markets, and currently has active programs aimed at treating obesity, pain and type 2 diabetes.

Background to AOD9604
AOD9604 for obesity is the company’s most advanced project, currently in Phase 2b human clinical trials. The AOD9604 molecule is a small orally active peptide modelled on one part of the human growth hormone molecule.

Growth hormone naturally occurs in the body and has
profound stimulatory effects on fat metabolism, with levels of the hormone typically becoming suppressed in the obese state.

Daily dosing with AOD9604 restores suppressed fat metabolism in the obese by mimicking the fat metabolic effects of growth hormone.

Metabolic believes that AOD9604 has the potential to provide a safer and more effective pharmaceutical treatment for obesity than existing drugs.

Previous short-term clinical trials conducted on AOD9604, of up to one week’s duration, have indicated that the drug is orally active, well tolerated and shows the expected trends in weight loss.
___________________________

Background to ACV1
ACV1 for neuropathic pain is the first in a potential new class of drugs to specifically treat neuropathic (nerve) pain.

Current therapies rely largely on the ‘off-label’ use of anticonvulsants, antidepressants and local anaesthetics, which have unimpressive efficacy and dose-limiting sideeffects.

The potential range of indications for ACV1 extend to neuropathic pain in diabetics, postherpetic
neuralgia (“shingles”), sciatica and many other neuropathic pain conditions currently underserved by pharmaceutical treatment.

ACV1 specifically blocks a subtype of a class of receptors in the peripheral nervous system called neuronal nicotinic acetylcholine receptors (nAChR).

ACV1 can be administered by once daily subcutaneous injections providing substantial relief in several animal models of neuropathic pain without apparent adverse effect. Phase 1 clinical trials are planned for Q1
2005.

Contact Information:
Chris Belyea , CEO [email protected]
David Kenley, VP Corporate Development [email protected]
Website www.metabolic.com.au
Phone +61 3 9860 5700