London (June 28, 2004) --- A team of London-based Morrison & Foerster attorneys represented Vernalis plc (LSE: VER, Nasdaq: VNLS), a leading U.K. biotechnology company, in connection with its $100 million collaboration with U.S. biotech Biogen Idec (Nasdaq: BIIB). The deal has been described by the Financial Times as one of the biggest licensing deals in the European biotechnology sector for several years.

The agreement will advance research into Vernalis' adenosine A2A receptor antagonist program, which targets Parkinson's disease and other central nervous system disorders.

Under the agreement, Biogen Idec receives exclusive worldwide rights to develop and commercialise Vernalis' lead compound, V2006. In addition, Biogen Idec has the right to develop one back-up compound to V2006 and receives option rights over Vernalis' A2A antagonist research program.

Biogen Idec will pay Vernalis an initial license fee of $10 million, a series of further payments if program milestones are met, and royalties on commercial sales of collaboration products. Biogen Idec will make an immediate investment of $6 million through subscription for 6,218,487 new Vernalis ordinary shares, representing 4.19 percent of Vernalis' enlarged issued share capital, at a price of 53 pence per share and has committed to purchase an additional $4 million in the event of a future Vernalis financing. Excluding royalties, total potential payments to Vernalis could exceed $100 million.

The Morrison & Foerster team was led by Julian Thurston. Julian joined Morrison & Foerster in April of this year to develop the Life Science practice in London and Europe. The firm is already a major life sciences player in the U.S. and Asia, with a powerful combination of corporate, transactional, patent and litigation expertise.

Julian Thurston commented, "Morrison & Foerster were extremely pleased to be able to assist Vernalis with this strategic partnering and subscription agreement."

About Parkinson's Disease

Parkinson's disease is a progressive movement disorder that affects approximately one percent of the population over the age of 65. Common symptoms of the disease include stiffening of the muscles, difficulty in moving, tremors and shaking. Parkinson's is caused by nerve degeneration and cell death in the brain, leading to the loss of dopamine, a neurotransmitter that is involved in the control of voluntary movement. Most conventional treatments for Parkinson's disease are based on the replacement or enhancement of dopamine in the brain. These treatments are generally effective in the short term, but efficacy tends to diminish over time and the emergence of side effects increases the level of disability. Vernalis' adenosine A2A receptor antagonist program is designed to restore the imbalance of neurotransmitters caused by the loss of dopamine.

About Vernalis

Established in September 2003 following the merger of British Biotech and Vernalis Group, Vernalis plc is pursuing a growth strategy based upon successful pipeline development and further consolidation within the biotechnology sector. Operating from state-of-the-art R&D facilities in Reading (UK) and in Cambridge (UK), the company is equipped to undertake the full development of compounds from discovery through to product registration. In May 2004 Vernalis reacquired the North American rights to frovatriptan, its first approved product, and the Company is in the process of selecting a new partner to market this product in the US and realise the significant potential of frovatriptan in the treatment of menstrually-associated migraine.

For further information about Vernalis, please visit http://www.vernalis.com

About Biogen Idec

Biogen Idec creates new standards of care in oncology and immunology. As a global leader in the development, manufacturing, and commercialisation of novel therapies, Biogen Idec transforms scientific discoveries into advances in human healthcare.

For further information about Biogen Idec, please visit http://www.biogenidec.com.