beijing med-pharm licence

ASX/MEDIA RELEASE
27 October 2005

Beijing Med-Pharm Licence

Upfront and milestone payments
BrachySilTM entry point for China

Global bio-nanotech company pSivida Limited (ASX:PSD, NASDAQ:PSDV, Xetra:PSI) is pleased to announce that it has signed a Licence with Beijing Med-Pharm Corporation (BJGP:PK) for the clinical development, marketing and distribution of pSivida’s lead product, BrachySilTM, in China.

Under the terms of the Licence, pSivida will manufacture BrachySilTM and Beijing Med-Pharm will be responsible for clinical development, securing regulatory approval, marketing and distribution in China. pSivida will retain manufacturing rights for BrachySilTM under the Licence. It is a condition of the licence that a Manufacturing and Supply Agreement for pSivida to supply BrachySilTM to Beijing Med-Pharm is concluded within 90 days.

The Licence includes upfront and milestone payments in excess of US$2 million and royalties ranging up to 30%, depending upon level of sales, payable to pSivida by Beijing Med-Pharm.

Beijing Med-Pharm is a US-based company with Chinese subsidiaries that offers an end-to-end solution to primarily Western pharmaceutical companies who wish to sell their products into the Chinese marketplace. In December 2004, Beijing Med-Pharm initiated the first ever purchase of a Chinese pharmaceutical distribution company by a foreign entity after it signed an agreement to purchase Beijing Wanwei Pharmaceutical Ltd., a pharmaceutical distributor covering the bulk of
Beijing's hospitals.

BrachySilTM (32-P BioSilicon™) will enter a Phase IIb dose-profiling study shortly as a potential new treatment for primary liver cancer (also called hepatocellular carcinoma or HCC). China has the highest incidence of HCC in the world, with over 345,000 estimated new cases per annum (Globocan), representing 55% of total worldwide cases. Given the clinical proof of principle already established for BrachySilTM, focused programmes are being prepared to exploit its broader utility in other significant cancer indications, including inoperable pancreatic and secondary liver disease.

Gavin Rezos, CEO of pSivida said, “China is the world’s fastest growing market for pharmaceuticals with a large and steadily increasing incidence of the types of cancer that we believe BrachySilTM can effectively treat. Gaining entry into this market, through partners such as Beijing Med-Pharm, is an important part of pSivida’s global commercial strategy. This agreement clearly validates the commercial potential of the BrachySilTM product and technology, and will serve as a robust platform for further licensing agreements for BrachySilTM in other territories, including Europe and the United States”.

Martyn Greenacre, Chairman of Beijing Med-Pharm said, “BrachySilTM is a highly innovative product addressing a significant patient population in China and thus an important addition to our portfolio of products to be commercialized. The growing middle class in China allows for a growing and significant population with the ability to pay for medicines of this type”.

pSivida Limited recently announced that it had entered into a definitive merger agreement to acquire Control Delivery Systems, a US based drug delivery company with the potential to create a global bionanotech company specializing in drug delivery, with revenues from existing products and generating long-term value through its diversified late-stage product portfolio.

-ENDS