OCTOBER 2006

 Tranzyme Pharma has started trials of TZP-101 in diabetics with gastroparesis.      

 This first-in-class drug is a small-molecule ghrelin agonist, which is also being

 evaluated for post-operative ileus...  Tranzyme hopes to start Phase II trials of TZP-

 101 in early 2007, and an oral form, TZP-202, should enter the clinic in the second

 half of 2007.  Until now, the most potent treatment for gastroparesis was Propulsid,

 which achieved $1billion in global sales but was withdrawn in 2000 due to adverse

 events.  Tranzyme's drugs are expected to have fewer side effects.

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