Anadys Pharmaceuticals and LG Life Sciences Report Results From Completed Phase I/II Clinical Trial of ANA380 (LB80380) for Hepatitis B

[Guest guest]

Anadys Pharmaceuticals and LG Life Sciences Report Results From Completed

Phase I/II Clinical Trial of ANA380 (LB80380) for Hepatitis B

New Data Presented at AASLD Annual Meeting in Boston Show Safety and Viral

Load Reduction in Treated HBV Patients

SAN DIEGO, and SEOUL, Korea, Nov 1, 2004 /PRNewswire-FirstCall via

COMTEX/ -- Anadys Pharmaceuticals, Inc. (Nasdaq: ANDS) and LG Life Sciences,

Ltd. (KOSPI: 68870) reported results from a recently completed Phase I/II

clinical trial of ANA380 (LB80380), an orally available compound for the

treatment of hepatitis B virus (HBV) infection, at the American Association

for the Study of Liver Diseases (AASLD) Annual Meeting yesterday in Boston.

In a presentation entitled " Phase I/II Double-Blind, Randomized,

Placebo-Controlled Study of the Novel Anti-HBV Agent LB80380/ANA380 in

Patients with Chronic HBV Infection, " Dr. Man-Fung Yuen of the University of

Hong Kong reported that ANA380 reduced viral load by an average of 3.4 log10

units, or more than 99.9 percent, in the chronically HBV-infected patients

receiving doses of 60 mg or more for four weeks. The data also demonstrated

that oral administration of ANA380 for 28 days was well tolerated and safe

at all doses studied, although definitive conclusions regarding product

safety cannot be made until the results of future clinical trials of longer

duration in more patients are known.

The Phase I/II clinical trial was designed to assess the safety,

pharmacokinetics and antiviral activity of ANA380 in patients chronically

infected with HBV. The study was a double-blind, randomized,

placebo-controlled, multiple ascending dose evaluation of ANA380 dosed once

daily for 28 days at 30 mg, 60 mg, 120 mg and 240 mg. Cohorts of seven

patients were randomized to treatment or placebo in a ratio of six to one at

each dose level, and safety was established at each dose prior to dose

escalation. Viral load reduction was greater for doses of 60 mg and above

than for the 30 mg dose, with individual viral load reductions ranging from

2 to 6 log10 units in the treated patients.

Patients participating in the study were monitored for a period of 12 weeks

after completing the dosing phase. Viral load in all treated patients

returned to pre-treatment levels during follow-up, confirming that the viral

load declines were associated with ANA380 administration.

" This compound has demonstrated substantial anti-HBV effects at all doses

studied, " said Dr. Yuen. " The excellent tolerability and potent activity of

ANA380, which includes in vitro activity against HBV strains resistant to

lamivudine, encourages additional clinical investigation. "

Anadys and LG Life Sciences recently announced that the first two cohorts

have completed enrollment in a new clinical trial to assess the safety and

antiviral activity of ANA380 in patients with lamivudine-resistant HBV

infection. Prof. Ching-Lung Lai of the University of Hong Kong is scheduled

to review several investigational compounds as part of his presentation at

the Therapies for Viral Hepatitis Workshop in Boston on November 3, 2004,

including preliminary data from this ongoing study that appear to support

the observation that ANA380 exhibits activity against lamivudine-resistant

strains.

About ANA380 (LB80380)

ANA380 (LB80380) is an oral prodrug of ANA317 (LB80317), a nucleotide analog

that has exhibited potent activity against HBV, including in vitro activity

against HBV strains resistant to lamivudine, the current standard of

treatment for patients infected with HBV. Anadys and LG Life Sciences are

jointly developing ANA380 on a global basis. In April, Anadys acquired an

exclusive license from LG Life Sciences for the commercialization of ANA380

in North America, Europe, Japan and the rest of the world other than China,

Korea, India and countries in Southeast Asia.

About Hepatitis B

Hepatitis B virus infections are a growing global health problem that can

cause both acute and chronic viral infections. Approximately 350 million

people are chronically infected and have become carriers of HBV.

Approximately 15 to 40 percent of these patients will develop serious

consequences of infection during their lifetime, including loss of liver

function, cirrhosis, and liver cancer. According to World Health

Organization, around 1 million people die each year from chronic HBV or

related conditions.

About Anadys

Anadys Pharmaceuticals, Inc. (www.anadyspharma.com) is a biopharmaceutical

company committed to advancing patient care by discovering, developing and

commercializing novel small molecule, anti-infective medicines for the

treatment of hepatitis C virus (HCV), hepatitis B virus (HBV) and bacterial

infections. Anadys is advancing its anti-infective portfolio through the

development of its two clinical programs, the isatoribine family of

compounds including the oral prodrug ANA975 for the treatment of HCV, and

ANA380 for the treatment of HBV. In addition, Anadys' anti-infective

therapeutic platform is designed to advance a strong and continual pipeline

of drug candidates into the clinic.

About LG Life Sciences

LG Life Sciences, Ltd (LGLS, www.lgls.co.kr), an LG affiliate, is an R & D

based biopharmaceutical company based in Seoul, Korea that discovers,

develops and commercializes new medicines in anti-infectives, cancer,

diabetes and other chronic diseases. In year 2003, LGLS had approximately

$150 million in revenue and 1000 employees. LGLS aims to become a leading

life science company by utilizing its R & D capabilities to develop global

brand products such as Factive® (gemifloxacin) and by expanding its

marketing presence in key Asian markets.

Statements in this press release that are not strictly historical in nature

constitute " forward-looking statements. " Such statements include, but are

not limited to, the effects of administration of ANA380 (LB80380) in HBV

infected patients, including ANA380 (LB80380)'s safety profile, potency, and

activity against HBV strains resistant to lamivudine, as well as

expectations regarding further clinical trials of ANA380 (LB80380). Such

forward-looking statements involve known and unknown risks, uncertainties

and other factors which may cause the actual results of LGLS and/or Anadys

Pharmaceuticals to be materially different from historical results or from

any results expressed or implied by such forward-looking statements. In

particular, the results of initial clinical trials may not be predictive of

future results, and Anadys and LGLS cannot provide any assurances that

ANA380 (LB80380) will have favorable results in later clinical trials, or

that ANA380 (LB80380) will receive regulatory approval. In addition, Anadys'

results may be affected by competition from other biotechnology and

pharmaceutical companies, its effectiveness at managing its financial

resources, its ability to successfully develop and market products,

difficulties or delays in its clinical trials, difficulties or delays in

manufacturing its clinical trials materials, the scope and validity of

patent protection for its products, regulatory developments involving future

products and its ability to obtain additional funding to support its

operations. These and other factors that may cause actual results to differ

are more fully discussed in the " Risk Factors " section of Anadys' Form 10-Q

for the quarter ended June 30, 2004. All forward-looking statements are

qualified in their entirety by this cautionary statement. Anadys is

providing this information as of this date and does not undertake any

obligation to update any forward-looking statements contained in this

document as a result of new information, future events or otherwise.

SOURCE Anadys Pharmaceuticals, Inc.; LG Life Sciences, Ltd.

Kamdar, Sr. VP, Corporate Development and Finance, +1-858-530-3667,

cc@..., or Pete De Spain, Manager, Corporate Communications,

+1-858-530-3653, pdespain@..., both of Anadys Pharmaceuticals,

Inc.; or In-Chull Kim, Ph.D., VP, Business Development, +82-2-3773-7009,

ickim@..., or Jay J.H. Kwon, Head of IR, +82-2-3773-3358,

jhkwonb@..., both of LG Life Sciences, Ltd.

http://www.lgls.co.kr

[Guest guest]

Anadys Pharmaceuticals and LG Life Sciences Report Results From Completed

Phase I/II Clinical Trial of ANA380 (LB80380) for Hepatitis B

New Data Presented at AASLD Annual Meeting in Boston Show Safety and Viral

Load Reduction in Treated HBV Patients

SAN DIEGO, and SEOUL, Korea, Nov 1, 2004 /PRNewswire-FirstCall via

COMTEX/ -- Anadys Pharmaceuticals, Inc. (Nasdaq: ANDS) and LG Life Sciences,

Ltd. (KOSPI: 68870) reported results from a recently completed Phase I/II

clinical trial of ANA380 (LB80380), an orally available compound for the

treatment of hepatitis B virus (HBV) infection, at the American Association

for the Study of Liver Diseases (AASLD) Annual Meeting yesterday in Boston.

In a presentation entitled " Phase I/II Double-Blind, Randomized,

Placebo-Controlled Study of the Novel Anti-HBV Agent LB80380/ANA380 in

Patients with Chronic HBV Infection, " Dr. Man-Fung Yuen of the University of

Hong Kong reported that ANA380 reduced viral load by an average of 3.4 log10

units, or more than 99.9 percent, in the chronically HBV-infected patients

receiving doses of 60 mg or more for four weeks. The data also demonstrated

that oral administration of ANA380 for 28 days was well tolerated and safe

at all doses studied, although definitive conclusions regarding product

safety cannot be made until the results of future clinical trials of longer

duration in more patients are known.

The Phase I/II clinical trial was designed to assess the safety,

pharmacokinetics and antiviral activity of ANA380 in patients chronically

infected with HBV. The study was a double-blind, randomized,

placebo-controlled, multiple ascending dose evaluation of ANA380 dosed once

daily for 28 days at 30 mg, 60 mg, 120 mg and 240 mg. Cohorts of seven

patients were randomized to treatment or placebo in a ratio of six to one at

each dose level, and safety was established at each dose prior to dose

escalation. Viral load reduction was greater for doses of 60 mg and above

than for the 30 mg dose, with individual viral load reductions ranging from

2 to 6 log10 units in the treated patients.

Patients participating in the study were monitored for a period of 12 weeks

after completing the dosing phase. Viral load in all treated patients

returned to pre-treatment levels during follow-up, confirming that the viral

load declines were associated with ANA380 administration.

" This compound has demonstrated substantial anti-HBV effects at all doses

studied, " said Dr. Yuen. " The excellent tolerability and potent activity of

ANA380, which includes in vitro activity against HBV strains resistant to

lamivudine, encourages additional clinical investigation. "

Anadys and LG Life Sciences recently announced that the first two cohorts

have completed enrollment in a new clinical trial to assess the safety and

antiviral activity of ANA380 in patients with lamivudine-resistant HBV

infection. Prof. Ching-Lung Lai of the University of Hong Kong is scheduled

to review several investigational compounds as part of his presentation at

the Therapies for Viral Hepatitis Workshop in Boston on November 3, 2004,

including preliminary data from this ongoing study that appear to support

the observation that ANA380 exhibits activity against lamivudine-resistant

strains.

About ANA380 (LB80380)

ANA380 (LB80380) is an oral prodrug of ANA317 (LB80317), a nucleotide analog

that has exhibited potent activity against HBV, including in vitro activity

against HBV strains resistant to lamivudine, the current standard of

treatment for patients infected with HBV. Anadys and LG Life Sciences are

jointly developing ANA380 on a global basis. In April, Anadys acquired an

exclusive license from LG Life Sciences for the commercialization of ANA380

in North America, Europe, Japan and the rest of the world other than China,

Korea, India and countries in Southeast Asia.

About Hepatitis B

Hepatitis B virus infections are a growing global health problem that can

cause both acute and chronic viral infections. Approximately 350 million

people are chronically infected and have become carriers of HBV.

Approximately 15 to 40 percent of these patients will develop serious

consequences of infection during their lifetime, including loss of liver

function, cirrhosis, and liver cancer. According to World Health

Organization, around 1 million people die each year from chronic HBV or

related conditions.

About Anadys

Anadys Pharmaceuticals, Inc. (www.anadyspharma.com) is a biopharmaceutical

company committed to advancing patient care by discovering, developing and

commercializing novel small molecule, anti-infective medicines for the

treatment of hepatitis C virus (HCV), hepatitis B virus (HBV) and bacterial

infections. Anadys is advancing its anti-infective portfolio through the

development of its two clinical programs, the isatoribine family of

compounds including the oral prodrug ANA975 for the treatment of HCV, and

ANA380 for the treatment of HBV. In addition, Anadys' anti-infective

therapeutic platform is designed to advance a strong and continual pipeline

of drug candidates into the clinic.

About LG Life Sciences

LG Life Sciences, Ltd (LGLS, www.lgls.co.kr), an LG affiliate, is an R & D

based biopharmaceutical company based in Seoul, Korea that discovers,

develops and commercializes new medicines in anti-infectives, cancer,

diabetes and other chronic diseases. In year 2003, LGLS had approximately

$150 million in revenue and 1000 employees. LGLS aims to become a leading

life science company by utilizing its R & D capabilities to develop global

brand products such as Factive® (gemifloxacin) and by expanding its

marketing presence in key Asian markets.

Statements in this press release that are not strictly historical in nature

constitute " forward-looking statements. " Such statements include, but are

not limited to, the effects of administration of ANA380 (LB80380) in HBV

infected patients, including ANA380 (LB80380)'s safety profile, potency, and

activity against HBV strains resistant to lamivudine, as well as

expectations regarding further clinical trials of ANA380 (LB80380). Such

forward-looking statements involve known and unknown risks, uncertainties

and other factors which may cause the actual results of LGLS and/or Anadys

Pharmaceuticals to be materially different from historical results or from

any results expressed or implied by such forward-looking statements. In

particular, the results of initial clinical trials may not be predictive of

future results, and Anadys and LGLS cannot provide any assurances that

ANA380 (LB80380) will have favorable results in later clinical trials, or

that ANA380 (LB80380) will receive regulatory approval. In addition, Anadys'

results may be affected by competition from other biotechnology and

pharmaceutical companies, its effectiveness at managing its financial

resources, its ability to successfully develop and market products,

difficulties or delays in its clinical trials, difficulties or delays in

manufacturing its clinical trials materials, the scope and validity of

patent protection for its products, regulatory developments involving future

products and its ability to obtain additional funding to support its

operations. These and other factors that may cause actual results to differ

are more fully discussed in the " Risk Factors " section of Anadys' Form 10-Q

for the quarter ended June 30, 2004. All forward-looking statements are

qualified in their entirety by this cautionary statement. Anadys is

providing this information as of this date and does not undertake any

obligation to update any forward-looking statements contained in this

document as a result of new information, future events or otherwise.

SOURCE Anadys Pharmaceuticals, Inc.; LG Life Sciences, Ltd.

Kamdar, Sr. VP, Corporate Development and Finance, +1-858-530-3667,

cc@..., or Pete De Spain, Manager, Corporate Communications,

+1-858-530-3653, pdespain@..., both of Anadys Pharmaceuticals,

Inc.; or In-Chull Kim, Ph.D., VP, Business Development, +82-2-3773-7009,

ickim@..., or Jay J.H. Kwon, Head of IR, +82-2-3773-3358,

jhkwonb@..., both of LG Life Sciences, Ltd.

http://www.lgls.co.kr

[Guest guest]

Anadys Pharmaceuticals and LG Life Sciences Report Results From Completed

Phase I/II Clinical Trial of ANA380 (LB80380) for Hepatitis B

New Data Presented at AASLD Annual Meeting in Boston Show Safety and Viral

Load Reduction in Treated HBV Patients

SAN DIEGO, and SEOUL, Korea, Nov 1, 2004 /PRNewswire-FirstCall via

COMTEX/ -- Anadys Pharmaceuticals, Inc. (Nasdaq: ANDS) and LG Life Sciences,

Ltd. (KOSPI: 68870) reported results from a recently completed Phase I/II

clinical trial of ANA380 (LB80380), an orally available compound for the

treatment of hepatitis B virus (HBV) infection, at the American Association

for the Study of Liver Diseases (AASLD) Annual Meeting yesterday in Boston.

In a presentation entitled " Phase I/II Double-Blind, Randomized,

Placebo-Controlled Study of the Novel Anti-HBV Agent LB80380/ANA380 in

Patients with Chronic HBV Infection, " Dr. Man-Fung Yuen of the University of

Hong Kong reported that ANA380 reduced viral load by an average of 3.4 log10

units, or more than 99.9 percent, in the chronically HBV-infected patients

receiving doses of 60 mg or more for four weeks. The data also demonstrated

that oral administration of ANA380 for 28 days was well tolerated and safe

at all doses studied, although definitive conclusions regarding product

safety cannot be made until the results of future clinical trials of longer

duration in more patients are known.

The Phase I/II clinical trial was designed to assess the safety,

pharmacokinetics and antiviral activity of ANA380 in patients chronically

infected with HBV. The study was a double-blind, randomized,

placebo-controlled, multiple ascending dose evaluation of ANA380 dosed once

daily for 28 days at 30 mg, 60 mg, 120 mg and 240 mg. Cohorts of seven

patients were randomized to treatment or placebo in a ratio of six to one at

each dose level, and safety was established at each dose prior to dose

escalation. Viral load reduction was greater for doses of 60 mg and above

than for the 30 mg dose, with individual viral load reductions ranging from

2 to 6 log10 units in the treated patients.

Patients participating in the study were monitored for a period of 12 weeks

after completing the dosing phase. Viral load in all treated patients

returned to pre-treatment levels during follow-up, confirming that the viral

load declines were associated with ANA380 administration.

" This compound has demonstrated substantial anti-HBV effects at all doses

studied, " said Dr. Yuen. " The excellent tolerability and potent activity of

ANA380, which includes in vitro activity against HBV strains resistant to

lamivudine, encourages additional clinical investigation. "

Anadys and LG Life Sciences recently announced that the first two cohorts

have completed enrollment in a new clinical trial to assess the safety and

antiviral activity of ANA380 in patients with lamivudine-resistant HBV

infection. Prof. Ching-Lung Lai of the University of Hong Kong is scheduled

to review several investigational compounds as part of his presentation at

the Therapies for Viral Hepatitis Workshop in Boston on November 3, 2004,

including preliminary data from this ongoing study that appear to support

the observation that ANA380 exhibits activity against lamivudine-resistant

strains.

About ANA380 (LB80380)

ANA380 (LB80380) is an oral prodrug of ANA317 (LB80317), a nucleotide analog

that has exhibited potent activity against HBV, including in vitro activity

against HBV strains resistant to lamivudine, the current standard of

treatment for patients infected with HBV. Anadys and LG Life Sciences are

jointly developing ANA380 on a global basis. In April, Anadys acquired an

exclusive license from LG Life Sciences for the commercialization of ANA380

in North America, Europe, Japan and the rest of the world other than China,

Korea, India and countries in Southeast Asia.

About Hepatitis B

Hepatitis B virus infections are a growing global health problem that can

cause both acute and chronic viral infections. Approximately 350 million

people are chronically infected and have become carriers of HBV.

Approximately 15 to 40 percent of these patients will develop serious

consequences of infection during their lifetime, including loss of liver

function, cirrhosis, and liver cancer. According to World Health

Organization, around 1 million people die each year from chronic HBV or

related conditions.

About Anadys

Anadys Pharmaceuticals, Inc. (www.anadyspharma.com) is a biopharmaceutical

company committed to advancing patient care by discovering, developing and

commercializing novel small molecule, anti-infective medicines for the

treatment of hepatitis C virus (HCV), hepatitis B virus (HBV) and bacterial

infections. Anadys is advancing its anti-infective portfolio through the

development of its two clinical programs, the isatoribine family of

compounds including the oral prodrug ANA975 for the treatment of HCV, and

ANA380 for the treatment of HBV. In addition, Anadys' anti-infective

therapeutic platform is designed to advance a strong and continual pipeline

of drug candidates into the clinic.

About LG Life Sciences

LG Life Sciences, Ltd (LGLS, www.lgls.co.kr), an LG affiliate, is an R & D

based biopharmaceutical company based in Seoul, Korea that discovers,

develops and commercializes new medicines in anti-infectives, cancer,

diabetes and other chronic diseases. In year 2003, LGLS had approximately

$150 million in revenue and 1000 employees. LGLS aims to become a leading

life science company by utilizing its R & D capabilities to develop global

brand products such as Factive® (gemifloxacin) and by expanding its

marketing presence in key Asian markets.

Statements in this press release that are not strictly historical in nature

constitute " forward-looking statements. " Such statements include, but are

not limited to, the effects of administration of ANA380 (LB80380) in HBV

infected patients, including ANA380 (LB80380)'s safety profile, potency, and

activity against HBV strains resistant to lamivudine, as well as

expectations regarding further clinical trials of ANA380 (LB80380). Such

forward-looking statements involve known and unknown risks, uncertainties

and other factors which may cause the actual results of LGLS and/or Anadys

Pharmaceuticals to be materially different from historical results or from

any results expressed or implied by such forward-looking statements. In

particular, the results of initial clinical trials may not be predictive of

future results, and Anadys and LGLS cannot provide any assurances that

ANA380 (LB80380) will have favorable results in later clinical trials, or

that ANA380 (LB80380) will receive regulatory approval. In addition, Anadys'

results may be affected by competition from other biotechnology and

pharmaceutical companies, its effectiveness at managing its financial

resources, its ability to successfully develop and market products,

difficulties or delays in its clinical trials, difficulties or delays in

manufacturing its clinical trials materials, the scope and validity of

patent protection for its products, regulatory developments involving future

products and its ability to obtain additional funding to support its

operations. These and other factors that may cause actual results to differ

are more fully discussed in the " Risk Factors " section of Anadys' Form 10-Q

for the quarter ended June 30, 2004. All forward-looking statements are

qualified in their entirety by this cautionary statement. Anadys is

providing this information as of this date and does not undertake any

obligation to update any forward-looking statements contained in this

document as a result of new information, future events or otherwise.

SOURCE Anadys Pharmaceuticals, Inc.; LG Life Sciences, Ltd.

Kamdar, Sr. VP, Corporate Development and Finance, +1-858-530-3667,

cc@..., or Pete De Spain, Manager, Corporate Communications,

+1-858-530-3653, pdespain@..., both of Anadys Pharmaceuticals,

Inc.; or In-Chull Kim, Ph.D., VP, Business Development, +82-2-3773-7009,

ickim@..., or Jay J.H. Kwon, Head of IR, +82-2-3773-3358,

jhkwonb@..., both of LG Life Sciences, Ltd.

http://www.lgls.co.kr

[Guest guest]

Anadys Pharmaceuticals and LG Life Sciences Report Results From Completed

Phase I/II Clinical Trial of ANA380 (LB80380) for Hepatitis B

New Data Presented at AASLD Annual Meeting in Boston Show Safety and Viral

Load Reduction in Treated HBV Patients

SAN DIEGO, and SEOUL, Korea, Nov 1, 2004 /PRNewswire-FirstCall via

COMTEX/ -- Anadys Pharmaceuticals, Inc. (Nasdaq: ANDS) and LG Life Sciences,

Ltd. (KOSPI: 68870) reported results from a recently completed Phase I/II

clinical trial of ANA380 (LB80380), an orally available compound for the

treatment of hepatitis B virus (HBV) infection, at the American Association

for the Study of Liver Diseases (AASLD) Annual Meeting yesterday in Boston.

In a presentation entitled " Phase I/II Double-Blind, Randomized,

Placebo-Controlled Study of the Novel Anti-HBV Agent LB80380/ANA380 in

Patients with Chronic HBV Infection, " Dr. Man-Fung Yuen of the University of

Hong Kong reported that ANA380 reduced viral load by an average of 3.4 log10

units, or more than 99.9 percent, in the chronically HBV-infected patients

receiving doses of 60 mg or more for four weeks. The data also demonstrated

that oral administration of ANA380 for 28 days was well tolerated and safe

at all doses studied, although definitive conclusions regarding product

safety cannot be made until the results of future clinical trials of longer

duration in more patients are known.

The Phase I/II clinical trial was designed to assess the safety,

pharmacokinetics and antiviral activity of ANA380 in patients chronically

infected with HBV. The study was a double-blind, randomized,

placebo-controlled, multiple ascending dose evaluation of ANA380 dosed once

daily for 28 days at 30 mg, 60 mg, 120 mg and 240 mg. Cohorts of seven

patients were randomized to treatment or placebo in a ratio of six to one at

each dose level, and safety was established at each dose prior to dose

escalation. Viral load reduction was greater for doses of 60 mg and above

than for the 30 mg dose, with individual viral load reductions ranging from

2 to 6 log10 units in the treated patients.

Patients participating in the study were monitored for a period of 12 weeks

after completing the dosing phase. Viral load in all treated patients

returned to pre-treatment levels during follow-up, confirming that the viral

load declines were associated with ANA380 administration.

" This compound has demonstrated substantial anti-HBV effects at all doses

studied, " said Dr. Yuen. " The excellent tolerability and potent activity of

ANA380, which includes in vitro activity against HBV strains resistant to

lamivudine, encourages additional clinical investigation. "

Anadys and LG Life Sciences recently announced that the first two cohorts

have completed enrollment in a new clinical trial to assess the safety and

antiviral activity of ANA380 in patients with lamivudine-resistant HBV

infection. Prof. Ching-Lung Lai of the University of Hong Kong is scheduled

to review several investigational compounds as part of his presentation at

the Therapies for Viral Hepatitis Workshop in Boston on November 3, 2004,

including preliminary data from this ongoing study that appear to support

the observation that ANA380 exhibits activity against lamivudine-resistant

strains.

About ANA380 (LB80380)

ANA380 (LB80380) is an oral prodrug of ANA317 (LB80317), a nucleotide analog

that has exhibited potent activity against HBV, including in vitro activity

against HBV strains resistant to lamivudine, the current standard of

treatment for patients infected with HBV. Anadys and LG Life Sciences are

jointly developing ANA380 on a global basis. In April, Anadys acquired an

exclusive license from LG Life Sciences for the commercialization of ANA380

in North America, Europe, Japan and the rest of the world other than China,

Korea, India and countries in Southeast Asia.

About Hepatitis B

Hepatitis B virus infections are a growing global health problem that can

cause both acute and chronic viral infections. Approximately 350 million

people are chronically infected and have become carriers of HBV.

Approximately 15 to 40 percent of these patients will develop serious

consequences of infection during their lifetime, including loss of liver

function, cirrhosis, and liver cancer. According to World Health

Organization, around 1 million people die each year from chronic HBV or

related conditions.

About Anadys

Anadys Pharmaceuticals, Inc. (www.anadyspharma.com) is a biopharmaceutical

company committed to advancing patient care by discovering, developing and

commercializing novel small molecule, anti-infective medicines for the

treatment of hepatitis C virus (HCV), hepatitis B virus (HBV) and bacterial

infections. Anadys is advancing its anti-infective portfolio through the

development of its two clinical programs, the isatoribine family of

compounds including the oral prodrug ANA975 for the treatment of HCV, and

ANA380 for the treatment of HBV. In addition, Anadys' anti-infective

therapeutic platform is designed to advance a strong and continual pipeline

of drug candidates into the clinic.

About LG Life Sciences

LG Life Sciences, Ltd (LGLS, www.lgls.co.kr), an LG affiliate, is an R & D

based biopharmaceutical company based in Seoul, Korea that discovers,

develops and commercializes new medicines in anti-infectives, cancer,

diabetes and other chronic diseases. In year 2003, LGLS had approximately

$150 million in revenue and 1000 employees. LGLS aims to become a leading

life science company by utilizing its R & D capabilities to develop global

brand products such as Factive® (gemifloxacin) and by expanding its

marketing presence in key Asian markets.

Statements in this press release that are not strictly historical in nature

constitute " forward-looking statements. " Such statements include, but are

not limited to, the effects of administration of ANA380 (LB80380) in HBV

infected patients, including ANA380 (LB80380)'s safety profile, potency, and

activity against HBV strains resistant to lamivudine, as well as

expectations regarding further clinical trials of ANA380 (LB80380). Such

forward-looking statements involve known and unknown risks, uncertainties

and other factors which may cause the actual results of LGLS and/or Anadys

Pharmaceuticals to be materially different from historical results or from

any results expressed or implied by such forward-looking statements. In

particular, the results of initial clinical trials may not be predictive of

future results, and Anadys and LGLS cannot provide any assurances that

ANA380 (LB80380) will have favorable results in later clinical trials, or

that ANA380 (LB80380) will receive regulatory approval. In addition, Anadys'

results may be affected by competition from other biotechnology and

pharmaceutical companies, its effectiveness at managing its financial

resources, its ability to successfully develop and market products,

difficulties or delays in its clinical trials, difficulties or delays in

manufacturing its clinical trials materials, the scope and validity of

patent protection for its products, regulatory developments involving future

products and its ability to obtain additional funding to support its

operations. These and other factors that may cause actual results to differ

are more fully discussed in the " Risk Factors " section of Anadys' Form 10-Q

for the quarter ended June 30, 2004. All forward-looking statements are

qualified in their entirety by this cautionary statement. Anadys is

providing this information as of this date and does not undertake any

obligation to update any forward-looking statements contained in this

document as a result of new information, future events or otherwise.

SOURCE Anadys Pharmaceuticals, Inc.; LG Life Sciences, Ltd.

Kamdar, Sr. VP, Corporate Development and Finance, +1-858-530-3667,

cc@..., or Pete De Spain, Manager, Corporate Communications,

+1-858-530-3653, pdespain@..., both of Anadys Pharmaceuticals,

Inc.; or In-Chull Kim, Ph.D., VP, Business Development, +82-2-3773-7009,

ickim@..., or Jay J.H. Kwon, Head of IR, +82-2-3773-3358,

jhkwonb@..., both of LG Life Sciences, Ltd.

http://www.lgls.co.kr