“Additionally, we have continued to make progress in our pipeline programs including BCX-4678, our hepatitis C polymerase inhibitor and peramivir, our influenza neuraminidase inhibitor.  We believe that BCX-4678 and the other compounds included under our patent applications represent a new direction for inhibiting hepatitis C, and we are now in the process of completing the preclinical package to file an Investigational New Drug (IND) application with the FDA during the first quarter of 2006.”

“We have long believed that injectable peramivir has considerable potential, and with the rising incidence of avian flu this spring we began bringing peramivir forward for the parenteral treatment of influenza-infected patients.  We are currently on track to file an IND with the FDA this November, and if the Agency approves our plan, we will begin clinical testing early in 2006.”

“Alongside the clinical development of our lead product candidates, we are actively involved in partnering discussions for Fodosine™ and BCX-4208.  Our strategy is to retain significant rights for marketing in the U.S while engaging partners who can assist with development and international commercialization.  By leveraging a partner’s experience and infrastructure, we will look to offset clinical and marketing expenses, moving our programs forward as effectively as possible.”

“The next six months should be an exciting time for BioCryst and I am enthusiastic about our upcoming clinical and corporate milestones,” said Dr. Bugg.

Year to Date 2005 Financial Results

Research and development expenses for the nine months ended September 30, 2005 increased to $17,602,000 over 2004 expenses of $14,168,000, which is directly related to the development progress made for each of our lead drug candidates during 2005. General and administrative expenses for the nine months ended September 30, 2005 decreased to $2,218,000 compared to the 2004 expense of $2,315,000, primarily due to a non-cash expense in 2004 related to stock options as a result of the amendment to our stock option plan approved by the shareholders in May 2004, which was partially offset by an increase in salary expense plus a reduction in professional fees and maintenance costs. The net loss for the nine months ended September 30, 2005 was $18,938,000, or $0.75 per share, compared to a net loss of $15,815,000, or $0.75 per share for the same period in 2004. 

Conference Call

The Company will sponsor a conference call at 10:00 am ET on Wednesday, October 26, 2005 to discuss the financial results and the status of each of our programs in more detail. This call is open to the public and can be accessed live either over the Internet from either www.biocryst.com or by dialing 1-866-558-6869 (U.S.) or 1-913-643-4199 (international).  No passcode is needed for the call.

About BioCryst

BioCryst Pharmaceuticals, Inc. designs, optimizes and develops novel drugs that block key enzymes involved in cancer, cardiovascular diseases, autoimmune diseases, and viral infections. BioCryst integrates the necessary disciplines of biology, crystallography, medicinal chemistry and computer modeling to effectively use structure-based drug design to discover and develop small molecule pharmaceuticals.

BioCryst’s lead product candidate, Fodosine™, is a transition-state analog inhibitor of the target enzyme purine nucleoside phosphorylase (PNP). The drug is currently in a Phase IIa trial for patients with T-cell leukemia and a combination IV and oral Phase I pharmacokinetic trial in healthy volunteers. Results of the Phase IIa and the Phase I pharmacokinetic trial will assist in the design of a planned combination IV and oral Phase IIb pivotal clinical trial in patients with T-cell leukemia. The Company has requested a Special Protocol Assessment from the FDA for this planned trial. Additionally, Fodosine™ is currently being studied in a Phase I trial with an oral formulation in cutaneous T-cell lymphoma (CTCL) and a Phase II trial in chronic lymphocytic leukemia (CLL). BioCryst also plans to initiate a Phase I/II trial in B-cell acute lymphoblastic leukemia during 2005. Fodosine™ has been granted Orphan Drug status by the U.S. Food and Drug Administration for three indications: T-cell non-Hodgkin’s lymphoma, including CTCL; CLL and related leukemias including T-cell prolymphocytic leukemia, adult T-cell leukemia, and hairy cell leukemia; and for treatment of B-cell acute lymphoblastic leukemia (ALL).

Additionally the FDA has granted “fast track” status to the development of Fodosine™ for the treatment of relapsed or refractory T-cell leukemia. A Phase Ib study with BioCryst’s second-generation PNP inhibitor, BCX-4208, was recently initiated and is being conducted with the goal of initiating Phase II studies in patients with psoriasis in 2006. BioCryst has re-initiated clinical development of peramivir, an inhibitor of influenza neuraminidase, with a focus on intravenous and intramuscular delivery. Also, BioCryst has identified a clinical candidate, BCX-4678, in its hepatitis C polymerase inhibitor program, and is advancing this compound through preclinical testing with the goal of filing an IND in early 2006. For more information about BioCryst, please visit the company’s web site at http://www.biocryst.com.