]>

CeNeS Announces Termination of its Joint Venture with Elan

Cambridge, UK, 18 June 2003 - CeNeS Pharmaceuticals plc (LSE: CEN)
today announced that it has reached agreement with Elan Corporation
plc (NYSE: ELN) to terminate the CeNeS/Elan joint venture, which was
established in June 2001 to develop M6G (morphine - 6-glucuronide)
for the treatment of pain. CeNeS alone will now plan to take forward
and fund the clinical development of M6G as it enters its phase III
program for the treatment of post-operative pain.

Neil Clark, Chief Operating Officer and Financial Director of CeNeS
commented, "CeNeS is pleased to have reached this agreement with
Elan.  The CeNeS/Elan joint venture has enabled the successful
progression of M6G over the last two years and the M6G clinical
package has been enhanced by the technical assistance Elan has
provided."

Under the terms of the agreement, CeNeS and Elan have agreed that the
joint development programmes are terminated and that the respective
rights to M6G and certain drug delivery technologies are returned to
CeNeS and Elan.  The minority shareholding held by Elan in CeNeS
Bermuda Limited will be transferred to CeNeS.  CeNeS has agreed to
pay Elan a percentage of all future revenues from M6G.

CeNeS and Elan have also agreed that no more funding shall be
available to CeNeS under the convertible loan stock arrangements
entered into in June 2001.  Elan has retained its current holding of
16.9 million ordinary shares representing 9.9% of the current issued
ordinary share capital of CeNeS.  Under the terms of the 5% 2009
convertible exchangeable loan stock (the "CELS") and the 7% 2007
convertible unsecured loan stock (the "CULS") CeNeS retains the
option to repay the loan stock together with accrued interest in cash
or convert the outstanding amount into CeNeS ordinary shares in 2007
in respect of the CULS and 2009 in respect of the CELS.  CeNeS has
drawn down US$12,015,000 under the CELS and US$2,806,000 under the
CULS.  If the CELS and the CULS run to term and each of the CELS and
the CULS convert into CeNeS ordinary shares a further 20.1 million
CeNeS ordinary shares would be issued giving Elan a total
shareholding, if added to Elan's existing shareholding, of 36.9
million ordinary shares (19% of CeNeS issued share capital as
enlarged by the issue of the new ordinary shares on conversion).  The
agreement reached between CeNeS and Elan provides that both the CELS
and CULS are freely transferable by Elan and the CELS will no longer
be exchangeable for shares in CeNeS Bermuda Limited.

This news release contains forward-looking statements that reflect
the Company's current expectation regarding future events.
Forward-looking statements involve risks and uncertainties. Actual
events could differ materially from those projected herein and depend
on a number of factors including the success of the Company's
research strategy, the applicability of the discoveries made therein,
the successful and timely completion of clinical studies and the
uncertainties related to the regulatory process.

For more information please contact:

CeNeS Pharmaceuticals plc
Alan Goodman
Neil Clark
Tel: +44 (0)1223 266466
Fax: +44 (0)1223 266467

Euro RSCG Life NRP
Dr Douglas Pretsell
Tel: +44 (0)20 7726 4452
Fax: +44 (0)20 7726 4453


Notes to Editors:

CeNeS is a biopharmaceutical company specialising in the development
and commercialisation of drugs for pain control. The company has
development assets targeting pain and has a portfolio of carried
interests in assets that it has divested. The company is based in
Cambridge, England. For further information visit www.cenes.co.uk.

M6G
M6G, a natural metabolite of morphine, is in development by CeNeS for
the treatment of moderate to severe pain. Morphine is a highly
effective analgesic that has been used for many years despite the
unpleasant side effects of nausea and vomiting and the potential
dangers of respiratory depression.

M6G has undergone several Phase II clinical trials with more than 450
patients receiving M6G. The most recent Phase II trials were designed
to establish the analgesic effects of different doses of M6G
administered at different times compared to a standard morphine
treatment regime. Phase III efficacy studies are currently being
planned: a pivotal, dose-ranging placebo controlled study is
scheduled to commence as a multi-centre study in Europe in 2003 in
patients undergoing knee replacement surgery with spinal anaesthesia.
It is planned that this will be followed by a second Phase III trial
in Europe comparing M6G and morphine treatment in patients with
postoperative pain following gastrointestinal and gynaecological
surgery. Side-effect profiles of M6G will be investigated in both
studies. If these trials are successful then M6G will be on target to
be launched in Europe in 2005/6.

Opiate Analgesia
Analgesia is the process of pain-relief and any pain-relieving drug
is called an analgesic. The most potent known class of analgesics are
the opiates, derived from the opium poppy, which confer a high degree
of pain-relief for severe pain. Opiates, like morphine and codeine,
act centrally in the brain in an area called the periaqueductal grey
area where they mimic the actions of neuromodulators called
endogenous opiates and 'switch off' the sensation of pain centrally.

The markets for M6G
M6G has potential as an analgesic for two types of pain,
post-operative pain and chronic pain, both of which are currently
treated with morphine.



- ---END OF MESSAGE---
Copyright � Hugin ASA 2003. All rights reserved.-----BEGIN PGP SIGNATURE-----
Version: PGP 6.5.8

iQA/AwUBPvAACe6RaHz0nSHVEQK51QCggUBoEH4fP86cBxap2avoxHWraosAoJ+5
YRMqSvzs11qWNnVKteDrd6Gj
=Wbd6
-----END PGP SIGNATURE-----