Vilazodone the new ghoully coming over the horizon

November 9, 2004

Notice it comes from MERCK......

Vilazodone 5-HT1A partial agonist, serotonin reuptake inhibitor Genaissance

Pharmaceuticals Depression, anxiety Phase II [9/04 press release]

Genaissance Pharmaceuticals, Inc. (GNSC) Licenses Compound From Merck KGaA

(MKGAF.PK)

NEW HAVEN, Conn., Sept. 23 /PRNewswire-FirstCall/ -- Genaissance

Pharmaceuticals, Inc. today announced that it has acquired an exclusive

worldwide license from Merck KGaA to develop and commercialize a small molecule

compound. The compound, vilazodone, is a selective serotonin reuptake inhibitor

(SSRI) and a 5HT1A partial agonist. In Phase II clinical trials for depression,

the compound has shown signals of efficacy and a favorable side effects profile

in the more than 1,000 patients exposed to the compound.

During the first half of 2005, Genaissance intends to commence enrollment for a

Phase II clinical trial that will include pharmacogenomic characterization of

patients. Genaissance will apply its HAP Technology and clinical genetics

experience and leverage the existing knowledge of the genetics of depression and

response to antidepressants, especially to SSRIs. The primary goal of the

clinical trial will be to find genetic markers that can be used to identify a

population of patients who will respond to the drug.

" As compared to the traditional drug development process, we see this agreement

as representing a compelling value-creation template for Genaissance, " said

Rakin, President and Chief Executive Officer of Genaissance. " In this

instance, as opposed to traditional drug development, a relatively modest

investment should determine within two years whether a Phase II compound can

proceed to late stage pivotal clinical testing. Moreover, the compound has a

novel mechanism of action with potentially superior claims for what is currently

a $13 billion market in the U.S. We are also pleased to have a partner of the

caliber of Merck KGaA and that they have elected to become a stockholder in

Genaissance. "

" This is an innovative approach for the further development of one of our

compounds that allows Merck to be in the forefront of pharmacogenomic

developments with a leading company in this dynamic new field, " said Merck

Chairman Bernhard Scheuble. " At the same time, Merck can continue to focus its

R & D resources on its main therapeutic areas of Oncology and CardioMetabolic

Care. "

Under the terms of the agreement, Merck KGaA is entitled to receive up to EUR 36

million worth of common shares of Genaissance for the initial license fee and

milestone payments up to the first commercial sale, based on a trailing average

of the closing price of the stock prior to the relevant payment dates. The

license fee consisted of 369,280 shares, 84,000 of which were issued upon the

execution of the letter of intent in April 2004. Merck KGaA will also receive

royalties on all product sales and a share of all sub-licensing income from any

third party.

" There is great potential to differentiate vilazodone from other drugs targeted

for depression and anxiety, " said Carol R. , M.D., Vice President, Medical

Affairs of Genaissance. " Not only is its mechanism of action unique, but a

pharmacogenomic-based drug should specifically target the problem of poor

overall efficacy of current first-line treatments for depression. Since

approximately 50% of patients do not achieve initial relief of their depression,

switching and discontinuation rates are very high and patient and physician

satisfaction are low. By using genetics to target vilazodone, we believe that

patients will achieve a satisfactory response and stay with the drug. "

In any given year, 9.5% of the U.S. population, or about 18.8 million American

adults, suffer from a depressive illness(1). Depressive illnesses interfere with

normal functioning and cause pain and suffering not only for those affected, but

also for those who care about them(2). Sales of products for the treatment of

depression represent one of the largest therapeutic categories in the world. In

2003, sales of depression treatments were $13.2 billion in the U.S. alone, with

forecasts estimating that the U.S. market will grow to $22.9 billion by 2013

with a compounded annual growth rate of 5.7%(3).

Genaissance will host a conference call and audio webcast to discuss matters

mentioned in this release today, September 23rd, at 2:00 p.m., Eastern Time. To

participate in this call, dial 719-457-2679, confirmation code 880744, shortly

before 2:00 p.m. The audio webcast can be accessed at:

http://www.genaissance.com/. A replay of the call will be available starting at

5:00 p.m., Eastern Time, through midnight on Monday, September 27th. The replay

number is 719-457-0820, confirmation code 880744.

About Merck KGaA

Merck is a global pharmaceutical and chemical company with sales of EUR 7.2

billion in 2003, a history that began in 1668, and a future shaped by 28,300

employees in 56 countries. Its success is characterized by innovations from

entrepreneurial employees. Merck's operating activities come under the umbrella

of Merck KGaA, in which the Merck family holds a 74% interest and free

shareholders own the remaining 26%. The former U.S. subsidiary, Merck & Co., has

been completely independent of the Merck Group since 1917.

About Genaissance

Genaissance Pharmaceuticals, Inc. is developing innovative products based on its

proprietary pharmacogenomic technology and has a revenue-generating business in

DNA and pharmacogenomic products and services. The Company's product development

strategy is focused on in-licensing drug candidates with promising clinical

profiles and finding genetic markers to identify a responsive patient

population. This strategy enables Genaissance to leverage existing clinical data

and, thus, reduce the costs and risks associated with traditional drug

development and increase the probability of clinical success and

commercialization. Genaissance intends to use this strategy to build a

late-stage, proprietary candidate drug pipeline. The Company's lead product,

vilazodone for depression, is in Phase II of development. Genaissance also

markets its proprietary FAMILION Test, designed to detect mutations

responsible for causing Familial Long QT and Brugada Syndromes, two causes of

sudden cardiac death. For more information on Genaissance, visit our website at:

http://www.genaissance.com/.

This press release contains forward-looking statements that involve a number of

risks and uncertainties. For this purpose, any forward-looking statements

contained in this press release that are not statements of historical fact may

be deemed forward-looking statements, including, without limitation, statements

about the expected timing of clinical trials studying vilazodone, the potential

clinical benefits of vilazodone and the growth and development of Genaissance's

business and market opportunities. Important factors that could cause actual

results, events and performance to differ materially from those referred to in

such statements, include, but are not limited to, whether vilazodone will

advance in the clinical trials process, including the timing of such clinical

trials; whether clinical trials will warrant continued product development;

whether and when, if at all, vilazodone will receive approval from the U.S. Food

and Drug Administration or equivalent regulatory agencies, and for which

indications; the extent to which genetic markers (haplotypes) are predictive of

clinical outcomes and drug efficacy and safety; whether vilazodone will be

successfully marketed; whether Genaissance will be able to develop or acquire

additional products; the attraction of new business and strategic partners; the

adoption of our technologies by the pharmaceutical industry; competition from

pharmaceutical, biotechnology and diagnostics companies; the strength of our

intellectual property rights and those risks identified in our Quarterly Report

on Form 10-Q filed with the Securities and Exchange Commission on August 16,

2004, and in other filings we make with the Securities and Exchange Commission

from time to time. The forward-looking statements contained herein represent the

judgment of Genaissance as of the date of this release. Genaissance disclaims

any obligation to update any forward-looking statement.

(1) Robins LN, Regier DA (Eds). Psychiatric Disorders in America, The

Epidemiologic Catchment Area Study, 1990; New York: The Free Press. (2) National

Institute of Mental Health website (http://www.nimh.nih.gov/) (3) IMS Healthcare

website (http://www.ims-global.com/)

Genaissance Pharmaceuticals, Inc.

CONTACT: Rakin, President & Chief Executive Officer,

GenaissancePharmaceuticals, Inc., +1-203-773-1450, k.rakin@...; or

Phyllis, Manager Corporate Media Relations, Merck KGaA,

+49-6151-72-7144,phyllis.carter@...; or Investor - Rhonda Chiger, Rx

Communications,+1-917-322-2569, rchiger@..., for Genaissance

Pharmaceuticals, Inc.; orMedia - A. Hall, Feinstein Kean Healthcare,

+1-415-677-2700,jeremiah.hall@..., for Genaissance Pharmaceuticals,

Inc.

Web site:

http://www.genaissance.com/http://www.ims-global.com/http://www.nimh.nih.gov/

November 9, 2004