XENOVA SAYS ITS VACCINE CUTS COCAINE BUZZ

LONDON (Reuters) - British biotech firm Xenova Group Plc said Tuesday its
experimental vaccine for cocaine addiction had shown signs of reducing the
euphoric effect associated with taking the drug.

Xenova, struggling to recover from the failure of its lead cancer drug
Tariquidar, said 14 of the 16 patients in two Phase IIa clinical studies had
reported a drop in the enjoyment from taking cocaine after taking the
vaccine, code-named TA-CD.

The studies also showed the vaccine safe and well tolerated.

Xenova shares, which have plunged from a high of 475 pence in 2000, climbed
as much as 17 percent to 17-1/4 pence in early trade. At 11:20 a.m. GMT,
they were 6.8 percent higher at 15-3/4p.

Analysts welcomed the trial results, but added the vaccine -- which builds
antibodies to cocaine that prevent the drug from reaching the brain -- was
still a long way from the market.

Keith Redpath at WestLB Panmure forecast a launch date of 2009 and potential
sales of $337 million.

Monday, a person familiar with the situation told Reuters that Xenova had
held early-stage merger talks with private German cancer firm Wilex AG, but
was not close to a deal.