NPS Pharmaceuticals and Allelix to Merge

On September 27, 1999, NPS Pharmaceuticals, Inc. (NPS) of Salt Lake City entered into a definitive arrangement agreement with Allelix Biopharmaceuticals Inc. (Allelix), whereby NPS Allelix Inc., an indirect wholly-owned subsidiary of NPS, will acquire all of the issued and outstanding common shares in the capital of Allelix pursuant to a plan of arrangement. Pursuant to the arrangement, each Canadian resident shareholder of Allelix can elect to receive either 0.3238 common shares of NPS or 0.3238 “exchangeable shares” of NPS Allelix Inc. (which are exchangeable into NPS common shares) for each common share of Allelix held. It is intended that the exchangeable shares will be listed on the TSE. Shareholders of Allelix who are not Canadian residents will receive 0.3238 common shares of NPS for each Allelix common share held. It is anticipated that the arrangement will be effective in the first quarter of 2000.

NPS is represented by Blake, Cassels & Graydon. The Blake team includes Rob Collins, Jeffrey Glass, Pat Finnerty (Calgary), Manuela Belmontes, Craig Thorburn and Chris Van Loan. Allelix is represented by Stikeman, Elliott. The Stikeman team includes Rob Nicholls, Darin Renton, Robert Mason and Brian Pukier.