Demegen Receives Orphan Drug Designation for P113D For Treatment of Cystic Fibro

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Demegen Receives Orphan Drug Designation for P113D For Treatment of

Cystic Fibrosis

DATELINE: PITTSBURGH, Nov. 5

Demegen, Inc. (OTC Bulletin Board: DBOT), a

biotechnology company specializing in the development of peptides for

the treatment of infectious diseases, announced today it had been

granted orphan drug status for the Company's patented P113D peptide

for

the treatment of cystic fibrosis (CF) infections by the U.S. Food and

Drug Administration.

Orphan drug designation is granted when a

disease occurs in less than 200,000 patients in the United States.

Benefits from orphan drug status can include a period of marketing

exclusivity, tax credits for clinical research expenses and clinical

development assistance.

Cystic fibrosis is a genetic disease, which

affects approximately 30,000 children and young adults in the United

States and another 40,000 worldwide. The gene defect causes thickened

mucous in the lungs that creates an ideal environment for bacterial

infections, particularly Pseudomonas aeruginosa. These lung infections

can lead to mortality in CF patients.

P113D is derived from histatins, which are

compounds found naturally in human saliva. P113D has demonstrated

activity against CF patient clinical isolates of bacteria that are

resistant to traditional antibiotics. The compound is stable and

maintains activity in sputum of CF patients. A number of preclinical

toxicology evaluations need to be completed before human trials can be

authorized.

Mr. Ekstrom, President of Demegen said: " There

is a very real need for new treatment options for CF patients with

chronic infections. Demegen is actively seeking to solidify

partnerships

with parties that have expressed interest in developing P113D. The

orphan drug designation should help that effort. The Company also

appreciates the funding support it has received from the Cystic

Fibrosis

Foundation. "

Demegen develops novel peptides for the

treatment of bacterial and fungal infections. Other products under

development include treatment for oral candidiasis and mucositis,

infected burns and wounds, and sexually transmitted infections.

Demegen's website is www.demegen.com.