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Coley Pharmaceutical Group and Pfizer Nominate Additional Anti-Cancer Compound for Clinical Development

Wednesday, October 31, 2007 General News J E 4
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WELLESLEY, Mass., Oct. 30 Coley PharmaceuticalGroup, Inc. (Nasdaq: COLY), a biopharmaceutical company discovering anddeveloping a novel class of drug candidates known as TLR Therapeutics(TM),announced today that Pfizer Inc, its global collaborator in the area ofcancer, has nominated a second TLR9 agonist compound discovered by Coley forfuture clinical development against cancers. This second generation drugcandidate is expected to complement Pfizer's ongoing clinical programs forPF-3512676, Coley's lead therapeutic TLR9 agonist drug candidate, for thetreatment of cancer.

"Our ability to discover and develop a variety of pharmacologically uniqueTLR9 agonist compounds demonstrates our dexterity in drug development, as wellas the breadth of our TLR Therapeutics technology platform," stated Robert L.Bratzler, Ph.D., President and Chief Executive Officer for ColeyPharmaceutical Group. "Pfizer's selection of this new development candidateis a strong testament to the potential of targeting the TLR9 pathway andreflects Pfizer's commitment to discovering and advancing TLR Therapeuticcandidates capable of stimulating the immune system to combat cancer."

The new development candidate was discovered by Coley under the twocompanies' strategic agreement in which Pfizer funds the discovery anddevelopment of potential next-generation TLR9 agonists for cancers, includingcancer vaccines. Pfizer has exclusive rights to two novel compoundsdiscovered under this agreement, while Coley retains the rights to all othermolecules. To date, Coley has designed and characterized nearly 60 uniquecompounds, each of which elicits a distinct immune stimulatory profile basedon its interaction with TLR9. The newly nominated compound, which is thefirst of two development candidates, will now undergo preclinical studies tofurther assess its pharmacokinetic and toxicology profiles before advancinginto clinical trials.

Pfizer is currently investigating PF-3512676 in combination withnon-cytotoxic anti-cancer agents. A Phase II clinical trial evaluatingPF-3512676 in combination with Tarceva(R) for the treatment of refractorynon-small cell lung cancer, and a Phase I clinical trial evaluating PF-3512676in combination with Pfizer's anti-CTLA4 antibody, tremelimumab, for thetreatment of advanced melanoma are both underway. Pfizer is currentlyplanning additional clinical trials with PF-3512676 to evaluate its safety andpotential efficacy in other cancer indications.

About Coley Pharmaceutical Group

Coley Pharmaceutical Group, Inc. is an international biopharmaceuticalcompany, headquartered in Wellesley, Massachusetts, USA, that discovers anddevelops TLR Therapeutics(TM), a new class of investigational drug candidatesthat direct the human immune system to fight cancers, allergy and asthmadisorders, and autoimmune diseases and to enhance the effectiveness ofvaccines. Coley has established a pipeline of TLR Therapeutic productcandidates currently advancing through clinical development with partners andhas additional product candidates in preclinical development. Coley hasproduct development, research and license agreements with Pfizer, sanofi-aventis, GlaxoSmithKline, Merck, Novartis Vaccines and the United Statesgovernment. For further information on Coley Pharmaceutical Group please visitwww.coleypharma.com.

Safe Harbor Statement

Certain statements in this news release concerning Coley's business areconsidered "forward-looking statements" within the meaning of the PrivateSecurities Litigation Reform Act of 1995. Any or all of the forward-lookingstatements in this press release may turn out to be wrong. They can beaffected by inaccurate assumptions Coley might make or by known or unknownrisks and uncertainties, including, but not limited to: the early stage ofproduct development; uncertainties as to the future success of ongoing andplanned clinica
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