Marcadia and Lilly Sign Development, License Agreement for Novel Glucagon Program in Severe Hypoglycemia

INDIANAPOLIS, June 28 /PRNewswire-FirstCall/ — Marcadia Biotech, Inc. and Eli
Lilly and Company (NYSE: LLY) today announced that the companies have signed a
development and exclusive license agreement for Marcadia’s short-acting glucagon
program, covering glucagon analogs that may provide greater convenience and
ease-of-use than the current recombinant glucagon for the treatment of severe
hypoglycemia. The program includes MAR531, a glucagon analog that is in
preclinical development at Marcadia, as well as related backup compounds.

Under the terms of the agreement, Marcadia will continue to oversee development
of the compound through regulatory approval in the U.S., while Lilly will be
responsible for obtaining regulatory approval in countries outside the U.S. and
for commercialization worldwide. Financial terms of the collaboration were not
disclosed.

“Glucagon is an important therapeutic for people with diabetes to treat an
episode of severe hypoglycemia, but the currently marketed products require
reconstitution from a lyophilized (powder) form before administering an
injection,” said Enrique Conterno, president of Lilly Diabetes. “A new glucagon
therapy that can be stored in solution form at room temperature and supplied in
a convenient injection device could be an important advance for patients.”

Fritz French, chief executive officer of Marcadia, added, “Lilly’s long
experience and expertise in diabetes, including its position as the market
leader in the glucagon emergency kit space, was an important consideration for
Marcadia. Their capabilities, combined with our unique peptide chemistry, which
has been instrumental to all of our peptide discovery and development programs,
should maximize the potential for this compound to benefit patients suffering
from diabetes.”

The companies plan to develop the short-acting glucagon analog to be supplied
and stored in a single-use auto-injection “pen” device. MAR531 and related
backup compounds were discovered through Marcadia’s sponsored research agreement
with Indiana University, Bloomington.

About Eli Lilly and Company

Eli Lilly and Company, a leading innovation-driven company, is developing a
growing portfolio of pharmaceutical products by applying the latest research
from its own worldwide laboratories and from collaborations with eminent
scientific organizations. Headquartered in Indianapolis, Ind., Lilly provides
answers — through medicines and information — for some of the world’s most
urgent medical needs. Information about Lilly is available at www.lilly.com.
C-LLY

About Marcadia Biotech

Marcadia Biotech is a biopharmaceutical company focused on developing a broad
portfolio of drug candidates for the treatment of diabetes and obesity. Using
proprietary peptide chemistry, Marcadia seeks to develop candidates with
unprecedented performance in key metabolic hormone pathways. Separately, the
company is also developing a dual agonist of GIP and GLP-1 for the treatment of
diabetes (MAR701) and a set of novel peptides that target GLP-1 biology. Founded
in 2006, Marcadia is based in Carmel, Ind. For more information, visit

http://www.marcadiabiotech.com.

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SOURCE Eli Lilly and Company; Marcadia Biotech, Inc.