X-Message-Number: 12429 Date: Thu, 16 Sep 1999 13:03:55 -0700 From: Olaf Henny <> Subject: Alteon Update Hi Everybody: I received the below quarterly report this morning. I am sure, there are subscribers to Cryonet, who would like to remain informed about any progress on the ALT-711 testing. - Not a whole lot so far. Here's to hoping, that they will indeed find a partner in their quest for obtaining approvals and marketing the substance. Best, Olaf ------------------------------------------------------------ Alteon Dear Shareholder: In the second quarter of 1999, the time and effort of the Alteon management team were focused on meeting with a number of pharmaceutical and biotech companies in the U.S. and abroad in order to secure a corporate partner for further development of our lead compounds. Several of these discussions have progressed, and it is our goal to have at least one partner in place before year-end. We continue dose escalation trials of ALT-711 in order to find the optimum dose for a Phase II program. In June we were pleased to report that ALT-711, our first A.G.E. crosslink breaker compound in clinical development, was well tolerated in initial Phase I human trials. We remain excited about the potential of this compound as well as our entire class of A.G.E. crosslink breaker compounds. A.G.E. crosslink breakers may prove to be an answer to many age-related and diabetes-related diseases. You may have seen some of this research highlighted in a recent PBS special focused on aging, called Stealing Time. The medical community has been encouraging us to move forward with the development of pimagedine, based on data on the drug's potential in diabetic complications, particularly proteinuria and retinopathy. Discussions with potential corporate partners have focused on these critical areas. As you are probably already aware, analyses of a pivotal Phase III trial ofpimagedine in Type I diabetic patients with kidney disease show that although pimagedine reduced the risk of doubling of serum creatinine, it did not reach statistical significance in this primary endpoint. Pimagedine therapy did result in a statistically significant and clinically meaningful reduction of urinary protein excretion. Pimagedine also reduced, to a statistically significant extent, LDL cholesterol and triglycerides as well as the progression of retinopathy. During the quarter we were pleased to announce the appointments of Ken Andrews as Senior Vice President, Operations and of Edwin D. Bransome, Jr., M.D. and George M. Naimark, Ph.D. to the Alteon Board of Directors. They are highly qualified individuals who add considerable strength and diversity to the Alteon team. I would also like to take this opportunity to recognize the retirement of Kenneth Cartwright, Senior Vice President of Regulatory Affairs. Ken will be available to us on a consulting basis; particularly we will be utilizing his regulatory expertise in the U.S. and Europe. We thank him for his ten years of service to Alteon, and wish him well in his retirement. Additionally, we would like to thank Robert Butler, M.D., whose resignation from the Board of Directors was effective August 10, 1999. Following are the financial results for the second quarter ended June 30, 1999. Alteon ended the quarter with cash, cash equivalents and short-term investments totaling $14.8 million. We have taken measure to tightly manage our burn rate as we continue our efforts to increase company value through strategic partnerships. We thank you, our shareholders, for your continued support. Sincerely, Kenneth I. Moch President and Chief Executive Officer Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=12429