Pharmacopeia Advances Strategic Plan to Focus Resources on Development and Later-Stage Discovery Programs

PRINCETON, N.J., May 30 /PRNewswire-FirstCall/ -- Pharmacopeia (Nasdaq:
PCOP), an innovator in the discovery and development of novel small
molecule therapeutics, announced today that it is implementing the next
step in its ongoing effort to focus its resources on the company's clinical
and later-stage discovery programs. This effort includes an immediate
workforce reduction of approximately 15 percent through attrition and
termination of positions as well as a decrease in other expenses through
improved operational efficiencies and increased financial discipline. The
company's annual operating expenditures are expected to decrease by at
least $10 million in 2009.

"We believe that, with the recent announcement of our positive Phase 2a
results for PS433540 (DARA), it is the appropriate time to continue
executing our plan to allocate a greater share of our resources towards our
later-stage programs," said Joseph A. Mollica, Ph.D., Chairman of the Board
of Directors and Interim President and Chief Executive Officer of
Pharmacopeia. "We are grateful for the contributions of the highly talented
individuals whose positions are impacted by these decisions and wish them
success in their future endeavors."

"In order to maximize shareholder value it is essential that we focus
our efforts on the programs that can provide the greatest return. In
addition to PS433540, these programs include: PS178990, our Selective
Androgen Receptor Modulator (SARM) which we believe will progress into
Phase 2 testing in the first half of 2009; PS031291, our oral CCR1
development candidate for which we intend to initiate clinical development
for the treatment of rheumatoid arthritis in early 2009; and our JAK3
program for the topical treatment of psoriasis which we expect to enter
preclinical development in 2009. Discovery research remains a core strength
of Pharmacopeia and will be increasingly focused on the discovery and
advancement of clinical candidates that we can independently develop into
valuable assets that directly benefit our shareholders," continued Dr.
Mollica.

As the company continues to improve its operational flexibility and
strengthen its balance sheet, it has a number of significant opportunities
to generate cash including a partnership for PS433540, the continued
success of its discovery efforts on behalf of partners, future development
milestones and potential royalties for the several clinical candidates
discovered by Pharmacopeia that are being advanced by partners such as
Schering-Plough and Bristol-Myers Squibb and, when appropriate, accessing
the capital markets.

In the second quarter of 2008, Pharmacopeia expects to record a charge
of approximately $800,000 in connection with the severance provided to
employees directly affected by the reduction in staffing.

ABOUT PHARMACOPEIA

Pharmacopeia is a clinical development stage biopharmaceutical company
dedicated to discovering and developing novel small molecule therapeutics
to address significant medical needs. The company has a broad portfolio of
clinical and preclinical candidates under development internally or by
partners including eight clinical compounds in Phase 2 or Phase 1
development addressing multiple indications including hypertension,
diabetic nephropathy, muscle wasting, inflammation and respiratory disease.
The company is leveraging its fully integrated drug discovery platform to
sustain the growth of its development pipeline. Pharmacopeia has
established strategic alliances with major pharmaceutical and biotechnology
companies, including Bristol-Myers Squibb, Celgene, Cephalon,
GlaxoSmithKline, Schering-Plough, and Wyeth Pharmaceuticals. For more
information please visit the company's website at
http://www.pharmacopeia.com.



Contact:
Amy P. Sharpless
Pharmacopeia, Inc.
(609) 452-3643
ir_pr@pcop.com

This press release, and oral statements made with respect to
information contained in this press release, constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements include those which express
plan, anticipation, intent, goal, contingency or future development and/or
otherwise are not statements of historical fact. These statements are based
upon management's current expectations and are subject to risks and
uncertainties, known and unknown, which could cause actual results and
developments to differ materially from those expressed or implied in such
statements. These forward-looking statements include, but are not limited
to, statements about the successful implementation of Pharmacopeia's
strategic plans, Pharmacopeia's plans to develop PS433540, a product
candidate from its DARA program, Pharmacopeia's Phase 2 and Phase 1
clinical studies with respect to PS433540, including timing and expected
outcomes of such studies, Pharmacopeia's plans to develop PS178990, a
product candidate from its SARM program, Pharmacopeia's Phase 1 clinical
studies with respect to PS178990, including timing and expected outcomes of
such studies, Pharmacopeia's plans to develop PS031291, a product candidate
from its chemokine receptor CCR1 program, Pharmacopeia's estimates of the
market opportunities for its product candidates, including PS433540,
PS178990 and PS031291, Pharmacopeia's ability to successfully perform under
its collaborations with Bristol-Myers Squibb, Cephalon, GlaxoSmithKline,
Schering-Plough and Wyeth, Pharmacopeia's ability to build its pipeline of
novel drug candidates through its own internally-funded drug discovery
programs, third party collaborations and in-licensing, Pharmacopeia's
ability to raise additional capital, Pharmacopeia's expectations concerning
the development priorities of its collaborators, their ability to
successfully develop compounds and its receipt of milestones and royalties
from the collaborations, Pharmacopeia's anticipated operating results,
financial condition, liquidity and capital resources, Pharmacopeia's
expectations concerning the legal protections afforded by U.S. and
international patent law, Pharmacopeia's ability to pursue the development
of new compounds and other business matters without infringing the patent
rights of others, additional competition, and changes in economic
conditions.

Further information about these and other relevant risks and
uncertainties may be found in Pharmacopeia's Reports on Form 8-K, 10-Q and
10-K filed with the U.S. Securities and Exchange Commission. Pharmacopeia
urges you to carefully review and consider the disclosures found in its
filings which are available in the SEC EDGAR database at http://www.sec.gov
and from Pharmacopeia at http://www.pharmacopeia.com. All forward-looking
statements in this press release and oral statements made with respect to
information contained in this press release are qualified entirely by the
cautionary statements included in this press release and such filings.
These risks and uncertainties could cause actual results to differ
materially from results expressed or implied by such forward-looking
statements. These forward-looking statements speak only as of the date of
this press release. Pharmacopeia undertakes no obligation to (and expressly
disclaims any such obligation to) publicly update or revise the statements
made herein or the risk factors that may relate thereto whether as a result
of new information, future events, or otherwise.





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Via: Healthcare