Document:

DATED 17th May 2000

                           GLYCYX PHARMACEUTICALS, LTD

                                      -and-

                         SHIRE PHARMACEUTICALS GROUP PLC

                                    AGREEMENT

THE INFORMATION HEREIN MARKED BY [*] HAS BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SEC.

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                                    CONTENTS

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<S>   <C>                                                                                                   <C>
1.    DEFINITIONS............................................................................................2

2.    GRANT AND ASSIGNMENT...................................................................................9

3.    SUBLICENCES AND ASSIGNMENTS OF PATENTS................................................................11

4     BUSINESS OPPORTUNITIES................................................................................13

5     GLYCYX ASSISTANCE.....................................................................................14

6     MUTUAL COOPERATION....................................................................................15

7     DEVELOPMENT AND MANUFACTURING COMMITTEES..............................................................15

8     TRANSFER BY GLYCYX....................................................................................18

9     PRODUCT REGISTRATIONS.................................................................................19

10    SUPPLY OF PRODUCT.....................................................................................20

11    REPRESENTATIONS AND WARRANTIES........................................................................24

12    PAYMENTS TO GLYCYX....................................................................................29

13    PRODUCT DATABASE AND ADVERSE REACTIONS REPORTING.......................................................3

14    IMPROVEMENTS...........................................................................................4

15    PRODUCT PATENTS, FORMULATION AND USE PATENTS AND TRADEMARKS............................................5

16    CONFIDENTIALITY........................................................................................7

17    INDEMNITY..............................................................................................9

18    WITHHOLDING TAX.......................................................................................11

19    FORCE MAJEURE.........................................................................................12

20    ASSIGNMENT............................................................................................12

21    NOTICES...............................................................................................13

22    ENTIRE AGREEMENT......................................................................................14

23    INDEPENDENT CONTRACTORS...............................................................................15
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<S>   <C>                                                                                                  <C>
24    WAIVER................................................................................................15

25    SEVERABILITY..........................................................................................15

26    GOVERNING LAW.........................................................................................16

27    JURISDICTION..........................................................................................16
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This Agreement is made the 17th day of May 2000

B E T W E E N:

(1) GLYCYX PHARMACEUTICALS, LTD. a company incorporated in Bermuda having its
registered office at Milner House, 18 Parliament Street, Hamilton, HM12 Bermuda
("Glycyx"); and

(2) SHIRE PHARMACEUTICALS GROUP PLC a company incorporated in England and Wales
having its registered office at East Anton, Andover, Hampshire, SP10 5RG England
("Shire")

W H E R E A S:

A. Glycyx is the sole and exclusive licensee of all rights in respect of a
pharmaceutical compound, Balsalazide, in respect of the territory of the world
excluding the United States and has itself or through a previous sub-licensee,
AstraZeneca AB, developed such pharmaceutical compound, conducted all clinical
trials and testing required in connection with initial applications for product
registrations within the European Union and applied for and obtained certain
product registrations in respect thereof and marketed such product in certain
European countries.

B. Shire wishes to acquire rights to such pharmaceutical compound in respect of
certain European countries and wishes to acquire product registrations obtained
in respect thereof currently held in the name of AstraZeneca AB and wishes to
effect a smooth transition of the marketing and distribution of such
pharmaceutical product in such countries from AstraZeneca AB.

C.       Glycyx has agreed to grant to Shire certain rights and to procure the
         assignment to Shire of certain other rights in respect of such
         pharmaceutical compound in certain European countries upon the terms
         and conditions of this Agreement.

                                                                               1
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D. [*]

IT IS AGREED AS FOLLOWS:

1.       DEFINITIONS

In this Agreement, the following terms and expressions shall have the meanings
specified below:

"Affiliate" means any corporation or other entity which controls, is controlled
by, or is under common control with, a party to this Agreement. A corporation or
other entity shall be regarded as in control of another corporation or entity if
it owns or directly or indirectly controls more than fifty percent (50%) of the
voting stock or other ownership interest of the other corporation or entity, or
if it possesses, directly or indirectly, the power to direct or cause the
direction of the management and policies of the corporation or other entity. For
the avoidance of doubt, Salix Pharmaceuticals, Ltd. a company registered in the
British Virgin Islands and Salix Pharmaceuticals Inc, a company registered in
California, USA are both Affiliates of Glycyx.

"API" means the active pharmaceutical ingredient of any Product.

"Approval" means the grant by the relevant Regulatory Authority of a marketing
authorisation permitting the commercial marketing of a Product in a country in
the Territory and the approval by the applicable Regulatory Authority of such
country of such Product for reimbursement under its national health and welfare
system and pricing.

"Assignments" means each of and together the Assignment of Patents in the form
contained in Schedule 2 and the Assignment of Trade Marks in the form contained
in Schedule 3.

"Astra" means AstraZeneca AB (previously known as Astra AB) a company
incorporated under the laws of Sweden (company registration number 556011-7482)
and whose principal place of business is at SE-151 85 Sodertalje, Sweden.

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                               2
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"Astra Agreement" means an agreement entered into between Astra and Glycyx dated
22 December 1999.

 "Astra Stock" means all Stock in respect of each of Sweden, Denmark and the
United Kingdom in the possession of Astra as at the relevant Transfer Date.

"Astra Termination Letter" means a letter of even date herewith from Glycyx to
Astra in respect of the Astra Agreement.

"Balsalazide" means 5-[4(2-Carboxyethylcarbamoyl)-phenylazo]- salicylic acid
disodium salt dihydrate or other salts and any prodrugs, analogs and isomers
thereof.

"Biorex" means Biorex Laboratories Limited a company incorporated in England and
Wales having its registered office at 2 Crossfield Chambers, Gladbeck Way,
Enfield, Middlesex, EN2 7HT, England.

"Biorex Agreement" means an agreement of even date herewith between Biorex and
Glycyx, relating to the Product Patents, the Trade Marks, the Community Trade
Mark, the Product and Balsalazide.

"CEOs" has the meaning set out in Clause 7.7.

"Clinical Study" has the meaning set out in Clause 9.3.

"Community Trade Marks" means the trademarks "Colazid" and "Colazide" registered
as Community Trade Marks in the name of Biorex under registration numbers
000501759 and 000267930.

"Consideration Shares" has the meaning set out in Clause 12.5.

"Development Committee" has the meaning set out in Clause 7.1.

"Effective Date" means the date of receipt by Glycyx of payment under Clause
12.1.1.

"Excluded Territory" means the world excluding only the Territory.

"Existing Territory" means the United Kingdom, Denmark and Sweden.

                                                                               3
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"Formulation and Use Patents" means the patents and the patent applications
listed in Schedule 1 and any continuations, continuations-in-part, divisions,
substitutions, renewals, reissues and extensions, including any SPCs obtained in
respect thereof only insofar as they relate to the Territory.

"Glycyx Area" means each of the areas known as Pacific Rim (ie. China, Korea,
Japan, Taiwan and Australasia), South East Asia, Central America, South America,
Eastern Europe and North America (which for the avoidance of doubt shall not
include the Territory or any part thereof).

"Glycyx Manufacturing Technology" means such Manufacturing Technology as is
owned by or within the control of or licensed to Glycyx or its Affiliates as at
the Effective Date including for the avoidance of doubt any obtained by Glycyx
from Astra (whether located in the Territory or elsewhere).

"Glycyx Product Information" means (in written or in any other form, including
electronic format):

         (i)      all pharmacology, toxicology and other preclinical test
                  results and, clinical data (including clinical trials data and
                  results), in respect of Balsalazide and the Product;

         (ii)     any documents or data filed or required to be filed in
                  connection with the Product Registrations;

         (iii)    correspondence with the Regulatory Authorities in the
                  Territory relating to Balsalazide or the Product;

         (iv)     marketing information used to support the marketing and
                  distribution of the Product in the Territory (including,
                  without limitation, sales training materials, promotional
                  materials and customer lists);

         (v)      any database relating to any adverse events in respect of the
                  Product which relates to the Territory;

                                                                               4
<PAGE>

owned by or within the control of or licensed to Glycyx or its Affiliates as at
the Effective Date (including for the avoidance of doubt any obtained by Glycyx
from Astra) whether located in the Territory or elsewhere.

"Glycyx' Solicitors" means Covington & Burling Registered Foreign Lawyers and
Solicitors - London of Leconfield House, Curzon Street, London, W1Y 8AS.

"Glycyx Stock" means all Stock manufactured for sale in the Territory which is
within the possession or control of Glycyx at the Effective Date, which is
estimated not to exceed 2.1 million capsules.

"Improvement" means any improvement, modification or adaptation to the
Manufacturing Technology which might reasonably be of commercial interest to the
Parties in the manufacture of Balsalazide or any Product.

"Indemnified Party" has the meaning set out in Clause 17.3.

"Indemnifying Party" has the meaning set out in Clause 17.3.

"Information" has the meaning set out in Clause 11.2.11.

"Infringement" has the meaning set out in Clause 15.5.

"Infringement Claim" means any allegation or claim made against Shire or any
Sublicensee that the development, manufacture, sale or distribution of any
Product within the Territory infringes or is an unauthorised use of the
Intellectual Property Rights of a Third Party.

"Initial Payment " means the Initial Payment to be paid by Shire to Glycyx under
Clauses 12.1.1 and 12.1.2.

"Intellectual Property Rights" means all rights in inventions, patents, SPCs,
designs, copyrights (including rights in software), trade marks, service marks
and databases (whether or not any of those is registered and including
applications for registration of the foregoing) together with all trade secrets,
know-how, other confidential information and all rights or forms of protection
of a similar nature or having equivalent or similar effect to any of those which
may subsist anywhere in the world.

                                                                               5
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"Liabilities" has the meaning set out in Clause 17.

"Manufacturing Committee" has the meaning set out in Clause 7.4.

"Manufacturing Technology" means all methods, processes, designs, data,
procedures and other information relating to the manufacture of Balsalazide
and/or the Products including, without limitation, final quality assurance,
quality control procedures, manufacturing procedures, product and raw material
specifications, formulation data and other technology related thereto.

"Maximum Quantity" has the meaning set out in Clause 10.11.

"MCA" means Medicines Control Agency, the UK Regulatory Authority established
under Section 6, Medicines Act 1968.

"Net Sales" means with respect to any Product the invoiced sales price of such
Product received from independent customers (including distributors) who are not
an Affiliate or Sublicensee, less, to the extent such amounts are included in
the invoiced sales price: (a) actual credited allowances to such independent
customers for spoiled, damaged, out-dated and returned Product; (b) sales,
value-added and other direct taxes for Product; (c) customs, duties and
surcharges relating to Product; and (d) normal and customary government, trade,
quantity and cash discounts.

"Price" has the meaning set out in Clause 10.11.

"Proceedings" has the meaning set out in Clause 15.5.

"Products" means (a) any products incorporating Balsalazide, or (b) any other
substance or material whose development, manufacture, use, sale or distribution
by an unlicensed Third Party would constitute an infringement of any Valid Claim
of the Product Patents.

"Product Patents " means the patents listed in the Schedule to the Patent
Assignment contained in Schedule 2.

"Product Licence" means the Product Registration for the Product granted by the
MCA in the United Kingdom to Astra numbered 0017/0394.

                                                                               6
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"Product Registrations" means all product licenses or approvals, marketing
approvals and pricing or reimbursement approvals in respect of any Product
granted to Glycyx or Astra or any Affiliate, licensee or sublicensee of Glycyx
or Astra by any Regulatory Authority prior to the Effective Date and any
applications (whether prepared, but not submitted, pending, withdrawn or
rejected) therefor in respect of the Territory only.

"Regulatory Authority" means any body responsible for the grant of product
licences or approvals, marketing approvals or pricing or reimbursement approvals
within the Territory.

"SPC" means in relation to any Product all Supplementary Protection Certificates
for medicinal products and their equivalents provided under Council Regulation
(EEC) No. 1768/92 of 18th June 1992 and any analogous extensions of patent
protection in any jurisdiction.

"Stock" means all stocks of Product (in whatever form or state of preparation)
which has at the relevant date, at least two thirds of its approved shelf life
unexpired and complies with specifications for the Product as at the relevant
date.

"Sublicence" means any agreement under which Shire grants to a Third Party (the
"Sublicensee") rights to market, promote and/or distribute Products in any part
of the Territory.

"Supply Period" means the period from the Effective Date to 31 December 2001.

"Territory" means Austria, Belgium, Denmark, Finland, France, Germany, Iceland,
Republic of Ireland, Luxembourg, Norway, The Netherlands, Switzerland, Sweden
and the United Kingdom.

"Term" means the term of this Agreement as specified in Clause 2.8.

"Third Party" means any entity other than Shire or Glycyx and their respective
Affiliates.

"Third Party Contractor" means any Third Party manufacturing API or finished
Product for and on behalf of either Party.

"Third Party Recipient" has the meaning set out in Clause 16.3.

                                                                               7
<PAGE>

"Trade Marks" means the registered trade marks as listed in the Schedule to the
Assignment contained in Schedule 3 including for the avoidance of doubt the
Community Trade Marks.

"Transfer Date" means in respect of each of Sweden, Denmark and the United
Kingdom the date on which the relevant Regulatory Authority effects a transfer
of the relevant Approval into the name of Shire (or as it may direct).

"UK Transfer Date" means the date on which the MCA approves and registers a
transfer of the Product Licence from Astra to Shire.

"Valid Claim" means a claim of any issued and unexpired patent which has not
been held permanently revoked, unenforceable or invalid by a decision of a court
or other governmental agency of competent jurisdiction, unappealable or
unappealed within the time allowed for appeal, and which has not been admitted
to be invalid or unenforceable through reissue or disclaimer or otherwise.

1.1      In this Agreement:

1.2.1    The expression "the Parties" shall mean the parties to this Agreement;

         1.2.2    Unless the context otherwise requires all references to a
                  particular clause sub-clause schedule or paragraph shall be a
                  reference to that clause sub-clause schedule or paragraph in
                  or to this Agreement as it may be amended from time to time
                  pursuant to this Agreement;

         1.2.3    Headings are for convenience only and shall be ignored in
                  interpreting this Agreement;

         1.2.4    Words importing the singular shall include the plural and vice
                  versa and words importing the masculine gender shall include
                  the feminine and vice versa;

         1.2.5    The words "including" or "included" are to be construed
                  without limitation to the generality of the preceding words.

                                                                               8
<PAGE>

2.       GRANT AND ASSIGNMENT

2.1      With effect from the Effective Date, Shire shall have a fully paid
         irrevocable, exclusive right and licence to develop, manufacture
         (subject only to Clause 2.6), use, sell and have sold and distribute
         any Product within the Territory. Glycyx hereby grants to Shire:

         2.1.1    a fully paid, irrevocable, exclusive right and licence under
                  the Formulation and Use Patents (subject always to Clause 2.6)
                  to develop, manufacture, use, sell and have sold and
                  distribute any Product within the Territory. The licence
                  granted in this Clause 2.1.1 shall continue in relation to
                  each country in the Territory for so long as any Product is
                  within a Valid Claim of the Formulation and Use Patent which
                  relates to each such country.

         2.1.2    a fully paid, irrevocable, exclusive right and licence
                  (subject always to Clause 2.6) to use the Glycyx Manufacturing
                  Technology and the Glycyx Product Information (and any
                  Intellectual Property Rights therein or relating thereto as at
                  the Effective Date) and any other Intellectual Property Rights
                  owned, licensed to or within the control of Glycyx as at the
                  Effective Date relating exclusively to Balsalazide or the
                  Product in any of the development, manufacture, use, sale and
                  distribution of any Product in the Territory. The licence
                  granted in this Clause 2.1.2 shall continue in force for so
                  long as the Glycyx Manufacturing Technology or Glycyx Product
                  Information shall remain confidential or any such Intellectual
                  Property Rights shall remain valid and enforceable.

         2.1.3    the licence granted in Clause 2.1.1 and 2.1.2 shall be
                  exclusive in the Territory to the exclusion of all other
                  persons including Glycyx and its Affiliates except that Glycyx
                  and its Affiliates shall have the rights as specified under
                  Clause 2.6. The Parties acknowledge that Astra has rights to
                  distribute the Product in the Existing Territory until each of
                  the relevant Transfer Dates under and in accordance with the
                  terms of the Astra Agreement.

                                                                               9
<PAGE>

2.2      Glycyx hereby agrees to procure the assignment by Biorex to Shire on
         the Effective Date of the Product Patents and the Trade Marks and
         undertakes to deliver to Shire on the Effective Date the Assignments
         duly executed by Biorex.

2.3      Glycyx hereby assigns to Shire the right to recover and take all such
         proceedings as may be necessary for the recovery of damages or
         otherwise in respect of all infringements of any of the Product Patents
         committed prior to the Effective Date.

2.4      Glycyx hereby assigns to Shire all its right, title and interest (if
         any) in and to any and all goodwill relating to the Trade Marks.

2.5      Each Party shall do or procure the doing of all such acts and things
         and/or execute or procure the execution of all such documents in
         connection with the assignment of the Product Patents and the Trade
         Marks and the grant of the licenses under Clause 2.1 and the transfer
         to Shire of the Product Registrations under Clause 8 or otherwise to
         give effect to the terms of this Agreement as may reasonably be
         required from time to time by the other Party (including for the
         avoidance of doubt all such documents as may be required in connection
         with the licence back of the Community Trade Marks under the Trade Mark
         Assignment). Each Party shall bear its own costs in connection with any
         matter arising under this Clause 2.5.

2.6      It is acknowledged that Glycyx, its Affiliates and/or its sublicensees
         shall continue to develop, distribute, market and sell the Product in
         the Excluded Territory. Shire acknowledges that notwithstanding the
         grant of rights to Shire in respect of the Territory under the terms of
         this Agreement, Glycyx and its Affiliates:

         2.6.1    shall have a fully paid, non exclusive irrevocable right and
                  licence with a right to sublicence to make or have made
                  Balsalazide and/or any Products within the Territory and shall
                  be entitled to use the Glycyx Manufacturing Technology and the
                  Glycyx Product Information (and Intellectual Property Rights
                  therein or relating thereto as at the Effective Date) and any
                  other Intellectual Property Rights licensed to Shire under
                  Clause 2.1.2 for this purpose; and

                                                                              10
<PAGE>

2.6.2             are hereby granted a fully paid, irrevocable right and
                  non-exclusive licence (with right to sublicense) under the
                  Product Patents for such purpose only

Provided That any such Balsalazide or Product manufactured within the Territory
shall be for supply to Glycyx, its Affiliates and its sublicensees for
marketing, distribution and sale outside the Territory only.

2.7      For the avoidance of doubt Glycyx hereby grants to Shire a
         non-exclusive fully paid up royalty free perpetual licence under the
         rights granted in Clause 4.4 of the Astra Agreement in respect of the
         Astra Intellectual Property (as defined in the Astra Agreement) which
         does not relate exclusively to Balsalazide or the Product to use the
         same in the development, manufacture, formulation, use or exploitation
         of Balsalazide and/or the Product only.

2.8      Unless otherwise expressly stated, the rights and obligations of each
         Party under this Agreement shall continue without limit in time. It is
         acknowledged that neither party shall be entitled to terminate this
         Agreement and the rights granted hereunder. In the event of any breach
         of the terms of this Agreement by either Party the rights of the other
         Party in respect of such breach shall be limited to damages or the
         remedies of specific performance or injunctive relief and neither Party
         shall be entitled to rescind or terminate this Agreement in any
         circumstances whatsoever.

3.       SUBLICENCES AND ASSIGNMENTS OF PATENTS

3.1      The licences granted to Shire under Clauses 2.1 above shall include the
         right to grant Sublicences within the Territory (for the avoidance of
         doubt, without any further consent or approval) Provided That;

         3.1.1    each such Sublicence shall impose obligations on the
                  Sublicensee which are no less onerous than the terms of
                  Clauses 6 and 16 of this Agreement, as imposed on Shire; and

         3.1.2    Shire undertakes to use all reasonable commercial endeavours
                  to procure the performance by any Sublicensee of the terms of
                  each Sublicence; and

                                                                              11
<PAGE>

         3.1.3    notwithstanding any such Sublicence, Shire shall remain solely
                  liable for the performance of its obligations hereunder; and

         3.1.4    Shire shall promptly as soon as reasonably practicable after
                  execution notify Glycyx in writing of the execution of any
                  Sublicence and the terms thereof and supply to Glycyx a copy
                  of each such Sublicence (with commercially sensitive terms
                  only redacted); and

         3.1.5    In the event that any Sublicensee is granted any right under
                  the Sublicence to develop the Product or conduct clinical
                  trials, the conduct of any such development or clinical trials
                  by a Sublicensee shall be subject to the prior written
                  approval of Shire; and

         3.1.6    each Sublicense shall require the Sublicensee in its exercise
                  of its rights under the Sublicense in respect of the
                  marketing, sale and distribution of the Product to maintain
                  standards of quality and performance substantially similar to
                  those maintained by Shire and its other Sublicensees in
                  connection with the Product taking into account only
                  differences in the standards of the pharmaceutical industry in
                  each country; and

         3.1.7    Shire shall not grant to any Sublicensee any right in respect
                  of the manufacture of Product Provided that this shall not
                  prevent Shire from subcontracting to a Third Party (who may
                  also be a Sublicensee) the manufacture of API or Product for
                  and on behalf of Shire, its Affiliates or Sublicensees; and

         3.1.8    Each Sublicence shall require that the Sublicensee disclose
                  and license Improvements to Shire to the extent necessary to
                  enable Shire to comply with Clause 14.1.

3.2      Shire shall not (save only in the event of an assignment of this
         Agreement and the rights and obligations hereunder in accordance with
         Clause 20) without the prior written consent of Glycyx assign to any
         Sublicensee any Product Patent.

3.3      In the event that Glycyx shall grant to a Third Party any licence in
         respect of Balsalazide or the Products in respect of any Glycyx Area
         (or a substantial part thereof) it shall impose on such licensee:

                                                                              12
<PAGE>

         3.3.1    obligations which are no less onerous than those imposed on
                  Shire under Clauses 6 and 16 of this Agreement;

         3.3.2    in respect of Improvements terms as imposed on Shire
                  substantially in the form of Clause 14; and

         3.3.3    in respect of any sublicence granted by such licensee an
                  obligation to impose on such sublicensee obligations which are
                  no less onerous than those which Shire is obliged to impose on
                  any Sublicensee under Clause 3.1.

         For the avoidance of doubt Glycyx shall be entitled to grant or assign
         to any such licensee in respect of any Glycyx Area (or substantial part
         thereof) at least such rights in respect of the relevant Glycyx Area
         (or substantial part thereof) equivalent to those granted to Shire in
         respect of the Territory. Glycyx undertakes to use all reasonable
         commercial endeavours to procure the performance by any licensee of the
         terms of any such licence.

3.4      Save only in the event of an assignment of this Agreement and the
         rights and obligations hereunder in accordance with Clause 20, Glycyx
         shall only assign any Formulation and Use Patents together with all the
         other Formulation and Use Patents. In the event of any such assignment,
         Glycyx shall notify Shire in writing of such assignment and shall
         notify the assignee in writing of the licence granted in favour of
         Shire under the Formulation and Use Patents under Clause 2.1.1 of this
         Agreement. Any such assignment shall require the assignee to comply
         with and adhere to the terms of the licence granted in favour of Shire
         under Clause 2.1.1.

4        BUSINESS OPPORTUNITIES

         4.1      Glycyx and Shire shall during the period of [*] days
                  after the Effective Date discuss in good faith the grant to
                  Shire of rights in respect of Balsalazide and Product in part
                  or all of the Excluded Territory, excluding only the USA,
                  Mexico and Canada, such grant to be upon such terms as may be
                  negotiated in good faith between the Parties during such
                  [*] day period or thereafter in the event that the Parties
                  agree to continue discussions thereafter. During that [*] day
                  period Glycyx agrees not to, and will procure that its
                  Affiliates will not, enter into or

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                              13
<PAGE>

                  continue discussions with any person other than Shire
                  regarding the license, sale, disposal or other grant of rights
                  in respect of Balsalazide or the Product in part or all of the
                  Excluded Territory excluding only the USA, Mexico and Canada.
                  For the avoidance of doubt, upon the expiration of such [*]
                  day period, Glycyx and its Affiliates shall have no further
                  obligations to Shire in respect of this Clause 4.1.

         4.2      During the period of [* (*)] years after the Effective Date
                  Glycyx shall notify Shire in writing in the event that Glycyx
                  or any Glycyx Affiliate proposes to license to any Third Party
                  the right to market, distribute and sell any pharmaceutical
                  product (other than Product or Balsalazide) in the Territory
                  or the Excluded Territory (Glycyx acknowledging for the
                  avoidance of doubt that it has no right to offer any such
                  licences in respect of Balsalazide or the Product in the
                  Territory) and in the event that Shire so requires Glycyx and
                  Shire shall discuss in good faith for a period of [* (*)] days
                  following the date of such notice the grant to Shire of rights
                  in respect of such product upon such terms and in respect of
                  such territories as may be negotiated in good faith between
                  the Parties during such [* (*)] day period or thereafter in
                  the event that the Parties agree to continue discussions
                  thereafter. During that [*] day period Glycyx agrees not
                  to, and will procure that its Affiliates will not, enter into
                  or continue discussions with any person other than Shire
                  regarding such license. For the avoidance of doubt, upon the
                  expiration of any such [* (*)] day period, Glycyx and its
                  Affiliates shall have no further obligations to Shire in
                  respect of this Clause 4.2 in respect of such specified
                  pharmaceutical product.

5        Glycyx assistance

         Glycyx undertakes to provide Shire with reasonable and timely access to
         relevant employees of Glycyx and any Glycyx Affiliate (and to use its
         reasonable commercial endeavours (which for the avoidance of doubt
         shall include taking such steps as may reasonably be required to
         enforce the terms of the Astra Agreement) to provide such access to
         employees of Astra if and to the extent reasonably required by Shire
         and to the extent that Glycyx can provide the same under the terms of
         the Astra Agreement)

         [*] CONFIDENTIAL TREATMENT REQUESTED;  CERTAIN INFORMATION OMITTED AND
         FILED SEPARATELY WITH THE SEC.

                                                                              14
<PAGE>

         who are familiar with Balsalazide and the Product or otherwise have
         material information in connection with the development, formulation,
         manufacture, distribution, marketing and sale of Balsalazide and/or any
         Product or any Product Registrations to make available to and transfer
         to Shire the Glycyx Manufacturing Technology, the Glycyx Product
         Information and the Product Registrations or in connection with matters
         arising in respect of the Product Registrations. Such access shall be
         free of charge except that Shire shall bear any travel, hotel or other
         out of pocket expenses reasonably incurred by Glycyx, Glycyx'
         Affiliates or by Astra in providing such assistance. Glycyx shall
         provide documentary evidence of any such expenses if required by Shire.

6        MUTUAL COOPERATION

         6.1      Shire acknowledges that Glycyx, its Affiliates and/or its
                  sublicensees will continue the development, distribution,
                  marketing and sales of Product in the Excluded Territory. Each
                  Party undertakes to and undertakes to procure that its
                  Affiliates, Sublicensees and sublicensees shall:

                  6.1.1    comply fully with the adverse reporting provisions
                           contained in Clause 13;

                  6.1.2    participate in regular meetings (at intervals to be
                           agreed) to discuss usage and performance of the
                           Product and at which information concerning such
                           matters may be exchanged.

7        DEVELOPMENT AND MANUFACTURING COMMITTEES

         7.1      The Parties shall establish a Development Committee with two
                  representatives of each Party and with such other committee
                  members as may reasonably be required from time to time. Such
                  Development Committee shall;

                  7.1.1    meet and consult as required under Clause 9.3; and

                  7.1.2    meet and consult as may be agreed to inform each
                           Party of any clinical trials or clinical development
                           proposed or undertaken by either Party in accordance
                           with Clause 7.2.

                                                                              15
<PAGE>

                  The Parties shall at all times have an equal number of
                  representatives on the Development Committee.

         7.2      Each Party undertakes to communicate to the Development
                  Committee its proposals for any clinical trials (with the
                  exception of the Clinical Study which is dealt with in Clause
                  9.3) or clinical development of any Product in the Territory
                  (in respect of Shire) and in the Excluded Territory (in
                  respect of Glycyx) and shall take into account any reasonable
                  requests of the other Party in connection with any such
                  proposals. The Parties may decide, on terms which may be
                  agreed, to further consult in respect of such clinical trials,
                  such as by sharing data.

         7.3      The Development Committee shall meet alternately in London and
                  in Palo Alto, California unless otherwise agreed and shall
                  liaise regularly by telephone and other communication. It is
                  proposed that the initial members of the Development Committee
                  shall be:

                  Shire:  Dr Garrick Fiddler, Mike Burkin

                  Glycyx: Lorin Johnson, John Brough

                  Each Party shall use reasonable endeavours to maintain
                  effective membership of the Development Committee and, if a
                  person shall cease to be a member of the Development
                  Committee, shall replace him with a suitably qualified
                  replacement.

         7.4      The Parties shall establish a Manufacturing Committee with two
                  representatives of each Party and with such other committee
                  members as may reasonably be required from time to time. The
                  Manufacturing Committee shall liaise as may be agreed from
                  time to time in connection with;

                  7.4.1    The supply of API and finished Product to Shire
                           during the Supply Period under Clause 10;

                  7.4.2    Subsequently, the economic manufacture and supply of
                           API to satisfy the forecast requirements of each
                           Party (and its Affiliates, Sublicensees and
                           sublicensees) in accordance with the terms of Clause
                           10;

                                                                              16
<PAGE>

         7.5      The Manufacturing Committee shall meet alternately in London
                  and in Palo Alto, California unless otherwise agreed and shall
                  liaise by telephone and other communication as reasonably
                  required from time to time by either Party. It is proposed
                  that the initial members of the Manufacturing Committee shall
                  be:

                  Shire:  Rob Haslam, Jenny Fox

                  Glycyx: John Brough, Randy Hamilton

                  Each Party shall use reasonable endeavours to maintain
                  effective membership of the Manufacturing Committee and, if a
                  person shall cease to be a member of the Manufacturing
                  Committee, shall replace him with a suitably qualified
                  replacement. The Parties shall at all times have an equal
                  number of representatives on the Manufacturing Committee.

         7.6      It is the intention of the Parties that all matters relating
                  to the further development of the Product and the manufacture
                  of API and the Product during the Supply Period and thereafter
                  shall be discussed in good faith and considered by the
                  Development Committee or the Manufacturing Committee as may be
                  agreed between the Parties from time to time. Without in any
                  way limiting the obligations of Glycyx in respect of the
                  transfer of the Product Registrations to Shire, Shire may
                  refer matters concerning the detailed arrangements for such
                  transfer to the Development Committee. Decisions of the
                  Development Committee and the Manufacturing Committee shall be
                  valid only if unanimously agreed by the two representatives of
                  each Party on the committee.

         7.7      In the event that either the Development Committee or the
                  Manufacturing Committee are unable to reach agreement on any
                  particular issue, either committee may refer the matter for
                  determination by the Chief Executive Officers of each Party
                  ("CEOs"). In the event of any such referral each Party shall
                  prepare and submit to the CEOs a memorandum or statement
                  setting out its position in respect of the matter in dispute
                  and its reasons for adopting that position and the CEOs shall
                  consider the dispute in the light of those statements. If the
                  CEOs agree upon the resolution of the dispute they shall issue
                  a joint statement setting out the agreed terms and shall
                  exercise all powers available to them to procure that the
                  agreed

                                                                              17
<PAGE>

                  terms are fully and promptly carried into effect by the
                  relevant committee and the Parties.

         7.8      If the matter is not resolved or disposed of in accordance
                  with Clause 7.7 the matter shall be referred to an independent
                  expert (experienced in the manufacture of pharmaceuticals or
                  the development of pharmaceutical products, as appropriate who
                  shall act as an expert and not an arbitrator) appointed by the
                  agreement of the Parties, or in the event that the Parties are
                  unable to agree on the independent expert, such expert shall
                  be appointed at the request of either Party by the President
                  for the time being of the Royal Pharmaceutical Society of
                  Great Britain who shall have the authority to appoint such an
                  expert.

8        TRANSFER BY GLYCYX

         8.1      Glycyx hereby assigns to Shire (and agrees to procure the
                  assignment by Astra, as appropriate), free of any charge or
                  payment (subject only to Clause 8.2) and free of any third
                  party right, claim or licence in respect of all or any part
                  thereof, all right title and interest in and to the Product
                  Registrations and agrees to take such steps as Shire may
                  request to formally transfer and register the ownership of the
                  Product Registrations to Shire and to secure approval of a
                  change to the records of the relevant Regulatory Authorities
                  recording Shire as owner.

         8.2      Shire shall be responsible for the payment of any fee payable
                  by the transferee on the transfer of any Product Registration
                  or by the applicant in connection with any application for
                  Approval filed by or on behalf of Shire after the Effective
                  Date.

         8.3      Glycyx undertakes as soon as practicable and in any event
                  within 60 (sixty) days of the Effective Date to deliver free
                  of charge to Shire (or as it may direct) copies of all Glycyx
                  Product Information and Glycyx Manufacturing Technology.

         8.4      Glycyx undertakes at its own cost (subject to Clause 5) to
                  procure the prompt performance by Astra of Astra's obligations
                  under the Astra Agreement including taking all such steps as
                  may be required to enforce the terms of the Astra Agreement
                  insofar as may be necessary to obtain for Shire the rights
                  granted under this Agreement.

                                                                              18
<PAGE>

9        PRODUCT REGISTRATIONS

         9.1      Shire shall use all reasonable commercial endeavours to obtain
                  Approvals in each of France, Germany and the Netherlands as
                  soon as reasonably practicable.

         9.2      Glycyx and Shire will each use their reasonable commercial
                  endeavours to and Glycyx will use its reasonable commercial
                  endeavours to procure that Astra will, obtain Transfer Dates
                  which are as soon after the Effective Date as possible.

         9.3      In the event that Shire ascertains that the relevant
                  Regulatory Authorities require additional clinical data to be
                  filed before granting Approval in Germany, France and the
                  Netherlands, Shire may, in its absolute discretion (subject to
                  Clause 9.1) decide to conduct a clinical study in order to
                  assist in obtaining an Approval (the "Clinical Study"). Shire
                  shall communicate such decision and details of the form and
                  protocol of the Clinical Study to the Development Committee
                  and Shire shall give due consideration to the views of the
                  Development Committee in respect of the Clinical Study it
                  being acknowledged that all decisions in respect of the
                  Clinical Study are ultimately to be made by Shire acting in
                  its sole discretion. Subject to clause 9.4, Shire shall be
                  responsible for the conduct of any such Clinical Study and
                  will provide all medical resources and clinical study
                  monitors. Shire shall keep the Development Committee informed
                  as to the conduct, progress and results of the Clinical Study.
                  Glycyx shall have prompt and full unrestricted access to the
                  final report and results of the Clinical Study and shall be
                  entitled to use such results and disclose the same to Third
                  Parties for use in connection with the registration,
                  marketing, sale and use of the Product in the Excluded
                  Territory only.

         9.4      Glycyx shall reimburse to Shire costs incurred by Shire and
                  payable to Third Parties and all direct internal costs
                  (including for example, salaries) incurred by Shire in the
                  conduct of the Clinical Study up to a maximum sum of
                  (pound)[*] [(*] pounds Sterling). Unless otherwise agreed by
                  the parties, Glycyx will reimburse Shire for such costs within
                  30 days of Shire issuing an invoice for such costs incurred
                  and supplying documentation in support thereof.

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                              19
<PAGE>

         9.5      Glycyx undertakes to retain cash or cash equivalent balances
                  of not less than the maximum liability to effect the
                  reimbursement remaining outstanding from time to time under
                  Clause 9.4 until the earlier of:-

                  9.5.1    the reimbursement by Glycyx to Shire of (pound)[*]
                           ([*] pounds Sterling) in total in connection with the
                           conduct of the Clinical Study in accordance with this
                           Clause 9;

                  9.5.2    the grant of first Approval in all of Germany, France
                           and the Netherlands; and

                  9.5.3    notification by Shire to Glycyx that it does not
                           intend carrying out any Clinical Study or otherwise
                           that Glycyx is released from any obligation to
                           reimburse Shire under Clause 9.4.

10       SUPPLY OF  PRODUCT

         10.1     Glycyx will within 5 days of the Transfer Date in respect of a
                  relevant country purchase from Astra in accordance with the
                  terms of the Astra Agreement all Astra Stock in respect of
                  such country.

         10.2     Glycyx will sell to Shire and Shire will purchase, within 5
                  days of each Transfer Date all Astra Stock in respect of the
                  relevant country at a price of (pound)[*]p (plus VAT if
                  applicable) per capsule. Payment for such Astra Stock shall be
                  made within 30 days of the receipt by Shire of the invoice
                  therefor. If Shire notifies Glycyx in writing prior to the
                  Transfer Date that it does not want to purchase any of the
                  Astra Stock Glycyx shall have no obligation to purchase the
                  Astra Stock under Clause 10.1 and Astra will be entitled to
                  sell such Astra Stock in the relevant country in the Territory
                  thereafter in accordance with the terms of the Astra
                  Agreement.

         10.3     Glycyx undertakes to grant to Shire a non exclusive fully paid
                  up royalty free licence under the rights to be granted to
                  Glycyx by Astra under Clause 18.4.7 of the Astra Agreement and
                  under the Astra Termination Letter to use any Astra trade

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                              20
<PAGE>

                  mark, trade name or logo or marking appearing on Astra Stock
                  sold to Shire under Clause 10.2 for a period reasonably
                  required by Shire to enable Shire to use and sell such Astra
                  Stock.

         10.4     Shire will within 60 days of the Effective Date place a
                  written order on Glycyx for the quantity of Glycyx Stock which
                  Shire wishes to purchase and Glycyx will sell and Shire will
                  purchase such quantity of Glycyx Stock at a price of
                  (pound)[*]p (plus VAT if applicable) per capsule. For the
                  avoidance of doubt Glycyx acknowledges that it has no right to
                  sell in the Territory any Glycyx Stock which is not purchased
                  by Shire (other than to Astra). Payment for such Glycyx Stock
                  shall be made within 30 days of the receipt by Shire of the
                  invoice therefor.

         10.5     Notwithstanding Clause 17, Glycyx agrees to indemnify and hold
                  Shire and/or its Affiliates harmless from and against any
                  Liabilities suffered or incurred in connection with Third
                  Party claims for personal injuries or any Product recall to
                  the extent caused by any defect in any Astra Stock or Glycyx
                  Stock purchased by Shire, except to the extent that Shire is
                  liable in respect thereof under Clause 10.6.

         10.6     Notwithstanding Clause 17, Shire agrees to indemnify and hold
                  Glycyx, its Affiliates and sublicensees harmless from and
                  against any Liabilities suffered or incurred in connection
                  with Third Party claims for personal injuries or any Product
                  recall to the extent caused by:

                  10.6.1   any amendment or alterations made by Shire (or its
                           Affiliates or Sublicensees) to any of the Astra Stock
                           or Glycyx Stock or to any packaging of the Astra
                           Stock or Glycyx Stock; or

                  10.6.2   any material supplied by Shire or any Shire Affiliate
                           or Sublicensee with any Astra Stock or Glycyx Stock
                           in addition to and together with the Astra Stock or
                           Glycyx Stock as delivered by Glycyx, upon its sale by
                           Shire or any Shire Affiliate or Sublicensee; or

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                              21
<PAGE>

                  10.6.3   reason of any sale by Shire (its Affiliates or
                           Sublicensees) of any Astra Stock or Glycyx Stock
                           which as at the date of such sale does not comply
                           with the Product specification current at such date
                           to the extent such failure to comply is caused by
                           Shire (its Affiliates or Sublicensees).

         10.7     Glycyx agrees to introduce Shire to all Third Party
                  Contractors manufacturing or preparing to manufacture API
                  and/or Product for and on behalf of Glycyx as at the Effective
                  Date.

         10.8     For the avoidance of doubt, Shire shall be entitled to procure
                  and license the manufacture, packaging or distribution (among
                  other things) of API and/or Product for and on behalf of
                  Shire, its Affiliates or Sublicensees by such Third Party
                  Contractors, or in such other manner as it considers
                  appropriate upon such terms as may be agreed between Shire and
                  Third Party Contractors subject always to Clauses 10.9, 10.10
                  and 10.11 and 10.12.

         10.9     The Parties shall through the Manufacturing Committee liaise
                  and consult in identifying and establishing additional Third
                  Party Contractors for the manufacture and supply of API and
                  Product.

         10.10    At any time when there shall be a shortage of supply of API
                  and/or Product from Third Party Contractors supplying both
                  Shire and Glycyx (or their Affiliates, Sublicensees or
                  sublicensees) sufficient to satisfy the demand for API and/or
                  Product by either Party (or its Affiliates, Sublicensees or
                  sublicensees), Glycyx and Shire agree to consult with the
                  Third Party Contractor and allocate available API and/or
                  Product quantities between themselves by reference to their
                  requirements for Product:

                  10.10.1  calculated by reference to [*] within their
                           respective territories as specified in [* (*)]; and

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                              22
<PAGE>

                  10.10.2  necessary to maintain existing and forecast sales
                           levels in the Territory and the Excluded Territory
                           existing as at the date of the shortage of supply;
                           and

                  10.10.3  in respect of the [*] within their respective
                           markets at the date of any such shortage of supply.

         10.11    Shire undertakes to use all reasonable commercial endeavours
                  to obtain API during the Supply Period at the most economic
                  price. Shire will use reasonable commercial endeavours to
                  procure that [*] in respect of its premises at [*] and at [*]
                  are added on relevant Product Registrations in the Territory
                  provided that this shall not delay or have any other adverse
                  impact on the Transfer Date. Notwithstanding that Shire shall
                  order and obtain API from Third Party Contractors direct on
                  its own account during the Supply Period, the Parties shall
                  make such payments as shall ensure that the price borne by
                  Shire for all quantities of API delivered to Shire during the
                  Supply Period (up to a maximum aggregate total of [*] [(*)]
                  tonnes (the "Maximum Quantity")) shall be (pound)[*]p ([*]
                  pounds Sterling) per kilogram of API (the "Price"). Within 30
                  (thirty) days of each of 31 December 2000 and 31 December
                  2001, the Parties shall review the total aggregate quantity
                  of API delivered to Shire, the price paid by Shire for such
                  quantity and upon review in December 2001, sums paid by
                  either Party on the December 2000 reconciliation and upon such
                  review shall effect such payment taking account of the
                  aggregate total to the date of the reconciliation and any sums
                  paid on the previous reconciliation, as may be required to
                  procure that the price borne by Shire for API shall be the
                  Price. Any such payment shall be made by Shire to Glycyx in
                  the event that the actual price paid shall be less than the
                  Price and shall be made by Glycyx to Shire in the event that
                  the actual price paid shall be greater than the Price.

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                              23
<PAGE>

         10.12    Shire shall not enter into any contract with any Third Party
                  Contractor for the supply of API during the Supply Period
                  without the prior approval of Glycyx (such approval not to be
                  unreasonably withheld or delayed subject to Glycyx being
                  satisfied as to the price of supply and the availability of
                  supply to meet the demand of both Glycyx and Shire for API
                  during the Supply Period). In the event that Shire proposes to
                  obtain its supplies of API during the Supply Period from a
                  Third Party at a price different from the Price it shall
                  notify Glycyx and if the price exceeds the Price Shire will
                  give Glycyx the opportunity to obtain the supply to Shire of
                  the quantities required to be delivered in the Supply Period
                  (up to the Maximum Quantity) from such Third Party Contractor
                  or Third Party as Glycyx may designate.

11       REPRESENTATIONS AND WARRANTIES

         11.1     Each Party represents and warrants to the other Party as
                  follows:-

                  11.1.1   that it is a duly organized and validly existing
                           corporation under the laws of its jurisdiction of
                           incorporation;

                  11.1.2   that it has full corporate power and authority and
                           has taken all corporate action necessary to enter
                           into and perform this Agreement;

                  11.1.3   that the execution and delivery of this Agreement and
                           the transactions contemplated herein do not violate,
                           conflict with or constitute a default under its
                           charter or similar organization document, its bylaws
                           or the terms or provisions of any material agreement
                           or other instrument to which it is a party or by
                           which it is bound, or any order, award, judgment or
                           decree to which it is a party or by which it is
                           bound; and

         11.2     Glycyx represents and warrants that:

                  11.2.1   So far as Glycyx or its Affiliates are aware (without
                           having made enquiry) no Product manufactured,
                           distributed, sold or used by Glycyx and/or its
                           Affiliates and/or its sublicensees prior to the
                           Effective Date in the Territory infringes, has

                                       24
<PAGE>

                           infringed, is alleged to infringe or has been alleged
                           to infringe any Intellectual Property Rights of any
                           Third Party;

                  11.2.2   So far as Glycyx or its Affiliates are aware (without
                           having made enquiry) no Product manufactured sold or
                           used in accordance with any of the Product Patents
                           prior to the Effective Date in the Territory
                           infringes or is alleged to infringe any Intellectual
                           Property Rights of any Third Party;

                  11.2.3   Neither Glycyx nor any of its Affiliates has at any
                           time prior to the Effective Date made any commitment
                           or incurred any obligation which conflicts with any
                           licences or other rights granted to Shire under this
                           Agreement;

                  11.2.4   So far as Glycyx or its Affiliates are aware (without
                           having made enquiry) none of its sublicensees has at
                           any time prior to the Effective Date made any
                           commitment or incurred any obligation which conflicts
                           with any licences or other rights granted to Shire
                           under this Agreement;

                  11.2.5   There are in respect of the Territory or any part
                           thereof:-

                           11.2.5.1 no outstanding orders, judgments,
                                    injunctions, awards or decrees of any court
                                    or arbitrator or any other governmental
                                    regulatory body notified to Glycyx its
                                    Affiliates or Astra relating to Balsalazide
                                    or any Product;

                           11.2.5.2 no challenges, oppositions, actions, suits,
                                    personal injury or product liability or
                                    other claims, legal, administrative or
                                    arbitral proceedings or investigations
                                    against Glycyx, its Affiliates or Astra
                                    pending or threatened against or relating to
                                    Balsalazide or any Product;

                  11.2.6   There are in respect of any part of the Excluded
                           Territory so far as Glycyx is aware without having
                           made enquiry;

                           11.2.6.1 no outstanding orders, judgments,
                                    injunctions, awards or decrees of any court
                                    or arbitrator or any other governmental
                                    regulatory body notified to Glycyx, its
                                    Affiliates or sublicensees relating to
                                    Balsalazide or any Product;

                                                                              25
<PAGE>

                           11.2.6.2 no challenges, oppositions, actions, suits,
                                    personal injury or product liability or
                                    other claims, legal, administrative or
                                    arbitral proceedings or investigations
                                    against Glycyx, its Affiliates or
                                    sublicensees pending or threatened against
                                    or relating to Balsalazide or any Product
                                    which have had or in the reasonable opinion
                                    of Glycyx may have a material adverse effect
                                    on the development, manufacturing or sale of
                                    the Product in the Territory;

                  11.2.7   Glycyx has at the Effective Date disclosed to Shire
                           all licences granted by Glycyx, its Affiliates (and
                           so far as Glycyx is aware without having made
                           enquiry, its sublicensees) in relation to the Product
                           Patents, the Glycyx Product Information and any
                           Product Registration in the Territory. So far as
                           Glycyx and its Affiliates are aware there have been
                           no past breaches of any such licences which in the
                           reasonable opinion of Glycyx are likely to have a
                           material adverse effect on the rights granted to
                           Shire under this Agreement. Save as disclosed in
                           respect of Astra and in respect of the Biorex
                           Agreement none of such licences is continuing as at
                           the Effective Date and so far as Glycyx and its
                           Affiliates are aware no party to such licences which
                           remain in force as at the Effective Date has
                           committed any material breach of the terms of such
                           licence.

                  11.2.8   Schedule 5 to this Agreement lists all entities
                           currently manufacturing API and all entities which
                           have previously manufactured commercially significant
                           quantities of API for and on behalf of Glycyx, its
                           Affiliates or its or their sublicensees anywhere in
                           the world.

                  11.2.9   So far as Glycyx and its Affiliates are aware without
                           having made enquiry the Formulation and Use Patents
                           are legally and beneficially owned by Glycyx free
                           from all liens, charges and encumbrances.

                  11.2.10  So far as Glycyx is aware without having made enquiry
                           all renewal fees and steps for the maintenance or
                           protection of the Formulation and Use Patents have
                           been paid or taken.

                                                                              26
<PAGE>

                  11.2.11  Neither Glycyx nor any of its Affiliates nor, so far
                           as Glycyx and its Affiliates are aware without having
                           made enquiry, any sublicensee has (except in the
                           ordinary and normal course of business or under an
                           obligation of confidence) disclosed or permitted to
                           be disclosed to any person other than Shire any
                           material Glycyx Manufacturing Technology or Glycyx
                           Product Information ("Information"). So far as Glycyx
                           is aware without having made enquiry, no Third Party
                           has obtained or is using any such Information
                           (insofar as such Information is confidential and
                           proprietary to Glycyx) without the authority of
                           Glycyx and no Third Party who has obtained any such
                           Information with the authority of Glycyx is using any
                           of such Information (insofar as such Information is
                           confidential and proprietary to Glycyx) otherwise
                           than as permitted by such authorisation.

                  11.2.12  So far as Glycyx is aware (without having made any
                           enquiry), the Product Patents and the Formulation and
                           Use Patents are valid and enforceable and so far as
                           Glycyx is aware (without having made enquiry) no act
                           has been done or omission permitted whereby any of
                           the Formulation and Use Patents has ceased to be
                           valid and enforceable and so far as Glycyx is aware
                           (without having made enquiry) no circumstance exists
                           which might cause any of the Formulation and Use
                           Patents to cease to be valid and enforceable.

                  11.2.13  So far as Glycyx and its Affiliates are aware without
                           having made enquiry (save of Astra), no Third Party
                           is infringing or has infringed any of the Product
                           Patents or any of the Formulation and Use Patents.

                  11.2.14  Save as acknowledged by Shire in a letter to Glycyx
                           of even date herewith Glycyx is not aware of any
                           written communication from or to a Regulatory
                           Authority which indicates that any Product
                           Registrations granted are likely to be invalid or
                           subject to challenge, revocation or withdrawal or
                           that applications for any Product Registrations are
                           likely to be rejected.

                  11.2.15  So far as Glycyx is aware, having enforced the terms
                           of the Astra Agreement it is in possession of all
                           documents, material and information that is or are
                           material in connection with the Product
                           Registrations. Glycyx has given

                                                                              27
<PAGE>

                           Shire full and unrestricted access to all documents
                           in the possession of Glycyx concerning the Product
                           Registrations.

                  11.2.16  So far as Glycyx and its Affiliates are aware without
                           having made enquiry (save of Astra) no trade marks
                           other than the Trade Marks have been used in
                           connection with the Product by Glycyx or its
                           Affiliates or sublicensees (including Astra) in the
                           Territory.

                  11.2.17  So far as Glycyx is aware without having made
                           enquiry, there are no continuations, continuations in
                           part, divisions, subdivisions, renewals, reissues,
                           extensions (including SPCs) relating to the Product
                           Patents or any patent rights claiming priority from
                           the Product Patents save as listed in the Schedule to
                           the Patent Assignment.

                  11.2.18  As of the Effective Date there are no patents or
                           patent applications within the Territory, other than
                           the Product Patents and the Formulation and Use
                           Patents, related to Balsalazide in the name of either
                           Glycyx or its Affiliates or Biorex or its Affiliates.

         11.3     In this Clause 11, where reference is made to enquiry having
                  been made of Astra, it is acknowledged that enquiry has only
                  been made of Mr [*] of Astra in the form of a letter quoting
                  the terms of Clauses 11.2.13 or 11.2.16 and requesting him to
                  notify Glycyx if he or Astra is aware of any matter which
                  might constitute a breach of either or both of these
                  warranties and Mr [*] replied orally on May 9 2000 that he was
                  not aware of any such matter, on the basis that neither Mr [*]
                  nor Astra was liable in any manner whatsoever in respect of
                  such reply.

         11.4     Save to the extent provided in this Clause 11, Glycyx makes no
                  representations, extends no warranties of any kind, either
                  express or implied, with respect to the manufacture, use,
                  sale, or other disposition by Shire or its Sublicensees or
                  other transferees of the Products. THE WARRANTIES EXPRESSLY
                  SET FORTH IN THIS CLAUSE 11 BY EITHER PARTY ARE EXCLUSIVE AND
                  NO OTHER WARRANTY, WRITTEN OR ORAL, INCLUDING WARRANTIES OF
                  MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, IS
                  EXPRESSED OR IMPLIED.

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                              28
<PAGE>

         11.5     EACH PARTY ACKNOWLEDGES THAT IN ENTERING INTO THIS AGREEMENT
                  IT DOES NOT DO SO ON THE BASIS OF AND DOES NOT RELY ON ANY
                  REPRESENTATION OR WARRANTY OR OTHER PROVISION (EXCEPT AS
                  EXPRESSLY PROVIDED HEREIN) AND ALL CONDITIONS, WARRANTIES OR
                  OTHER TERMS IMPLIED BY STATUTE OR COMMON LAW ARE HEREBY
                  EXCLUDED TO THE FULLEST EXTENT PERMITTED BY LAW.

12       PAYMENTS TO GLYCYX

         12.1     In consideration of the rights granted to Shire under the
                  terms of this Agreement Shire shall pay to Glycyx:

                  12.1.1   Subject to Clause 12.5 on the date hereof by
                           telegraphic transfer to Glycyx' Solicitors the sum of
                           (pound)7,828,000 (the "First Payment"); and

                  12.1.2   Subject to Clause 12.5 within 5 working days of the
                           UK Transfer Date, by telegraphic transfer to Glycyx'
                           Solicitors the sum of (pound)[*] (the "Second
                           Payment"). The First and Second Payments are together
                           referred to as the "Initial Payment"; and

                  12.1.3   Within 30 days of the grant of first Approval in
                           Germany (if any), the sum of(pound)[*]; and

                  12.1.4   Within 30 days of grant of first Approval in France
                           (if any), the sum of(pound)[*]; and

                  12.1.5   Within 30 days of the grant of first Approval in The
                           Netherlands (if any), the sum of(pound)[*]; and

                  12.1.6   On or before 1st February 2004 the sum of (pound)[*],
                           such sum to be payable only in the event that the
                           aggregate total Net Sales of all sales of the Product
                           made by or on behalf of Shire its Affiliates or
                           Sublicensees in the

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                              29
<PAGE>

                           United Kingdom in the period from the UK Transfer
                           Date to 31st December 2003 shall exceed
                           (pound)[*]

                  Provided Always That in the event that Shire sells Product in
                  any of France, Germany or the Netherlands without having
                  obtained Approval in respect of any such country the payments
                  due in accordance with Clauses 12.1.3, 12.1.4 and 12.1.5 above
                  shall be payable on the first sale of Product in such country.

         12.2     [*]

                  12.2.1   [*
                            *
                            *

                           *]

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                              30
<PAGE>

                                      [*]

                  [*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION
                  OMITTED AND FILED SEPARATELY WITH THE SEC
                                                                              31
<PAGE>

                  [*]

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC

                                                                              32
<PAGE>

                              Table  1 of Target Sales (GPB (pound))

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Country                                                          Year
                   -----------------------------------------------------------------------------------------
                             2001             2002               2003              2004              2005
------------------------------------------------------------------------------------------------------------
                                                  All GBP
------------------------------------------------------------------------------------------------------------
<S>                       <C>              <C>                  <C>              <C>              <C>
UK                       [*                *                    *               *                 *
------------------------------------------------------------------------------------------------------------
Austria                   *                *                    *               *                 *
------------------------------------------------------------------------------------------------------------
Belgium                   *                *                    *               *                 *
------------------------------------------------------------------------------------------------------------
Denmark                   *                *                    *               *                 *
------------------------------------------------------------------------------------------------------------
Finland                   *                *                    *               *                 *
------------------------------------------------------------------------------------------------------------
France                    *                *                    *               *                 *
------------------------------------------------------------------------------------------------------------
Germany                   *                *                    *               *                 *
------------------------------------------------------------------------------------------------------------
Iceland                   *                *                    *               *                 *
------------------------------------------------------------------------------------------------------------
Ireland                   *                *                    *               *                 *
------------------------------------------------------------------------------------------------------------
Luxembourg                *                *                    *               *                 *
------------------------------------------------------------------------------------------------------------
Netherlands               *                *                    *               *                 *
------------------------------------------------------------------------------------------------------------
Norway                    *                *                    *               *                 *
------------------------------------------------------------------------------------------------------------
Sweden                    *                *                    *               *                 *
------------------------------------------------------------------------------------------------------------
Switzerland               *                *                    *               *                 *
------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------
TOTAL                     *                *                    *               *                 *]
------------------------------------------------------------------------------------------------------------
</TABLE>

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                              33
<PAGE>

                  12.2.2   [*]

                  12.2.3   [*]

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                              34
<PAGE>

                  [*]

                  12.2.4   [*]

                  12.2.5   [*]

                  12.2.6   [*]

                  12.2.7   [*]

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                               1
<PAGE>

                           [*]

         12.3     All payments due under this Clause 12 shall be made through
                  the banking system on or before the due date into such bank
                  account as Glycyx shall designate in writing from time to time
                  for the receipt of such payments.

         12.4     If Shire or Glycyx fails to pay any sums due under this
                  Agreement by the due date, it shall pay interest on the amount
                  from time to time outstanding (before and after any expiry of
                  this Agreement and any judgement), from the date that the same
                  became due until actual payment, at a rate of 2% above the
                  base rate from time to time of Barclays Bank plc.

         12.5     Shire may at its option (to the extent permitted by law) pay
                  up to (pound)1,600,000 (one million six hundred thousand
                  pounds Sterling) of the First Payment and up to (pound)600,000
                  (six hundred thousand pounds Sterling) of the Second Payment
                  by the allotment of fully paid Ordinary Shares of (pound)0.05p
                  each in the capital of Shire Pharmaceuticals Group plc (the
                  "Consideration Shares") upon terms whereby:-

                  12.5.2   the Consideration Shares shall be allotted to Glycyx
                           (or as it may direct) within 15 days of the Effective
                           Date in respect of First Payment and within 15 days
                           of the UK Transfer Date in respect of the Second
                           Payment; and

                  12.5.3   the number of Consideration Shares shall be
                           calculated by reference to the mid-market quotation
                           as derived from the London Stock Exchange daily
                           Official List of Ordinary Shares in Shire
                           Pharmaceuticals Group plc averaged over the period of
                           5 (five) trading days immediately preceding the
                           Effective Date in respect of the First Payment and
                           the UK Transfer Date in respect of the Second
                           Payment; and

                  12.5.4   the Consideration Shares shall rank pari passu in all
                           respects with the other Ordinary Shares in issue in
                           the capital of Shire Pharmaceutical Group plc; and

                  12.5.5   the Consideration Shares shall on allotment be
                           admitted to the Official List of the London Stock
                           Exchange and may be traded freely upon allotment.

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                               2
<PAGE>

         12.6     It is acknowledged that Glycyx shall receive part of the
                  payments under Clause 12.1 for and on behalf of Biorex in
                  consideration of the Assignments.

         12.7     Save for the payments received under Clause 12.6, and the sum
                  of (pound)[*] in respect of the licence of the Formulation and
                  Use Patents insofar as they relate to the United Kingdom, the
                  Parties acknowledge that Glycyx is being paid in consideration
                  of the development of Balsalazide and Product (which
                  development includes all necessary pre-clinical and clinical
                  studies conducted prior to the Effective Date and the
                  preparation and filing of a dossier and the grant of Approval
                  in the United Kingdom) and the exclusive right to market and
                  sell Product in the Territory transferred under this
                  Agreement.

13       PRODUCT DATABASE AND ADVERSE REACTIONS REPORTING

         13.1     The determination of whether an event amounts to a serious or
                  unexpected adverse event will be assessed in accordance with
                  the approved labelling in the country in which the event
                  occurred.

         13.2     Shire shall maintain a database of all adverse and other
                  reactions or events occurring in connection with the Product
                  in any part of the Territory and shall use reasonable
                  endeavours to procure that any such adverse and other
                  reactions are notified to it in a timely manner by any
                  Sublicensee and/or distributor of the Product.

         13.3     Glycyx shall maintain a database of all adverse and other
                  reactions or events occurring in connection with the Product
                  in any part of the Excluded Territory and shall use reasonable
                  endeavours to procure that any such adverse and other
                  reactions are notified to it in a timely manner by any
                  sublicensee and/or distributor of the Product.

         13.4     On at least an annual basis a meeting will be held between
                  representatives of both Shire and Glycyx to review and if
                  necessary reconcile the data contained in the Shire and Glycyx
                  reaction databases.

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                               3
<PAGE>

         13.5     Each Party undertakes:-

                  13.5.1   to notify the other Party by telephone, or facsimile
                           transmission or electronic mail within 24 hours of
                           becoming aware of any serious or unexpected adverse
                           reaction or contra indication to the Product, such
                           notification to include a summary of such event.
                           Written documentation of any such event must be
                           received by the other Party on a CIOMS form along
                           with an analysis of similar events within 3 (three)
                           working days of verbal notification;

                  13.5.2   to use reasonable efforts to provide to the other
                           Party, as appropriate, follow-up safety information
                           regarding any such reaction or event using a CIOMS
                           form;

                  13.5.3   to notify the other Party within 3 (three) months, on
                           a quarterly basis, of other adverse reactions or
                           contra indications to the Product other than stated
                           under 13.5.1;

                  13.5.4   to provide to the other Party in a timely manner
                           copies of all safety reports submitted to any
                           Regulatory Authority in the Territory or the Excluded
                           Territory, as appropriate; and

                  13.5.5   to notify the other Party regarding sales volumes, by
                           providing in writing quarterly unit sales figures by
                           reference to each part of the Territory or Excluded
                           Territory, as appropriate. Such information will be
                           used by the other Party to generate "increased
                           frequency" data for periodic safety reporting to the
                           appropriate Regulatory Authority in the Territory or
                           Excluded Territory, as appropriate.

14       IMPROVEMENTS

         14.1     In the event that either Party or any Affiliate, Sublicensee
                  or (to the extent such sublicence agreement provides therefor)
                  sublicensee of either Party shall develop, identify or create
                  any Improvement it shall promptly notify the Manufacturing
                  Committee and shall grant to the other Party an irrevocable,
                  non-exclusive, fully paid up licence (with the right to
                  sublicense) to develop, use, manufacture, have

                                                                               4
<PAGE>

                  manufactured, exploit, market and sell any such Improvement in
                  connection only with the manufacture of the Product or
                  Balsalazide in the Territory or the Excluded Territory as
                  appropriate.

         14.2     In the event that either Party or any Affiliate or Sublicensee
                  or sublicensee of either Party shall develop, identify or
                  create any improvement or amendment to the Product or
                  Balsalazide it may in its sole discretion notify the other
                  Party and may in its sole discretion enter into negotiations
                  concerning the grant of a licence to the other Party in
                  respect of such improvement or amendment upon such terms as it
                  thinks fit.

15       PRODUCT PATENTS, FORMULATION AND USE PATENTS and TRADEMARKS

         15.1     For the avoidance of doubt, Shire acknowledges that Glycyx
                  shall have the right to take such actions as are necessary or
                  appropriate to maintain the Product Patents within the
                  Excluded Territory and in the event that it does not do so,
                  Biorex shall have the right to do so at its own expense.

         15.2     Glycyx may in its sole discretion prosecute to grant, maintain
                  or procure the maintenance of the Formulation and Use Patents
                  in the Territory for the maximum term available Provided That
                  in the event that Glycyx elects not to so prosecute to grant
                  or maintain any of the Formulation and Use Patents in the
                  Territory Shire shall have the right to do so at its own
                  expense and Glycyx shall make available to Shire or its
                  authorised attorneys, agents or representatives, such of its
                  employees, agents, or consultants necessary or appropriate to
                  enable Shire to prosecute to grant or maintain the Formulation
                  and Use Patents in the Territory and shall assign the
                  Formulation and Use Patents to Shire for no additional charge.

         15.3     Notwithstanding Clause 3.4, if Glycyx intends to dispose of
                  any of the Formulation and Use Patents, Glycyx will notify
                  Shire of its intention and Shire shall have the right to an
                  assignment of the Formulation and Use Patents upon such terms
                  as may be agreed.

                                                                               5
<PAGE>

         15.4     For the avoidance of doubt, upon the expiry or invalidity of
                  any of the Formulation and Use Patents Shire shall have a
                  continuing, irrevocable, royalty-free licence (with the right
                  to Sublicense) to use the Glycyx Manufacturing Technology and
                  Glycyx Product Information and any rights existing therein to
                  manufacture, use, sell, have sold and distribute Products in
                  the Territory.

         15.5     In the event that either Party has reason to believe that a
                  Third Party is infringing, threatening to infringe or
                  otherwise making unauthorised use of any of the Formulation
                  and Use Patents or the Glycyx Product Information in the
                  Territory it shall promptly notify the other Party of such
                  infringement or unauthorised use ("Infringement") and:

                  15.5.2   Shire and/or its Affiliates or Sublicensees shall, in
                           their sole discretion, have the right to bring,
                           direct and control proceedings relating thereto
                           including its prosecution, defence or settlement
                           ("Proceedings"); and

                  15.5.3   Any damages and other payments recovered in any
                           Proceedings shall be retained by Shire or its
                           Affiliates or its Sublicensee; and

                  15.5.4   Glycyx shall give Shire and/or its Affiliates and/or
                           its Sublicensees all such assistance as Shire may
                           reasonably require, at Shire's expense, in connection
                           with any such Proceedings.

         15.6     In the event that either Party has reason to believe that a
                  Third Party is infringing, threatening to infringe or
                  otherwise making unauthorised use of any of the Glycyx
                  Manufacturing Technology it shall promptly notify the other
                  Party and the Manufacturing Committee of such infringement or
                  unauthorised use and each Party shall take such action in
                  respect of such infringement or unauthorised use as may
                  reasonably be required by the Manufacturing Committee.

         15.7     In the event of an Infringement Claim Shire and/or its
                  Affiliates and/or its Sublicensees shall, in their sole
                  discretion, have the right to acknowledge, defend, settle or
                  otherwise resolve any such Infringement Claim in such manner
                  as it considers appropriate. Glycyx shall give Shire and/or
                  its Affiliates and/or its Sublicensees all such assistance as
                  any of the same shall reasonably require in

                                                                               6
<PAGE>

                  connection with any such Infringement Claim and shall make no
                  admission in respect of such Infringement Claim.

16       CONFIDENTIALITY

         16.1     Each Party undertakes that in relation to all confidential
                  information of the other Party which may be within or come
                  into its possession in connection with or arising from this
                  Agreement or which it may generate in reliance on any
                  confidential information so disclosed, such confidential
                  information to include all confidential information comprised
                  in the Glycyx Manufacturing Technology and Glycyx Product
                  Information (collectively "Confidential Information"), it
                  shall keep the same secret and confidential and shall not at
                  any time for any reason whatsoever disclose or permit the same
                  to be disclosed to any Third Party (save only as provided in
                  Clause 16.3 below).

         16.2     The obligations of confidentiality contained in this Clause 16
                  shall not extend to any part of the Confidential Information
                  of the disclosing party which the recipient party can show by
                  documentary evidence:-

                  16.2.2   has (otherwise than by reason of any default by the
                           recipient party) become freely available to the
                           general public; or

                  16.2.3   was legally in the recipient party's possession or
                           control prior to the date upon which it was received
                           from the disclosing party free of any obligation of
                           confidentiality; or

                  16.2.4   came into the recipient party's possession or control
                           legally from a Third Party free of any obligation of
                           confidentiality otherwise than by reason of any
                           breach of any obligation of confidentiality by such
                           Third Party.

         16.3     It is acknowledged that notwithstanding the provisions of
                  Clause 16.1 above each Party shall be entitled to disclose any
                  Confidential Information of the other Party;

                  16.3.2   to its agents, representatives, employees and
                           consultants to the extent necessary to facilitate
                           exploitation of the Product in the Territory or the
                           Excluded Territory (as appropriate), to business
                           advisers and Third Parties

                                                                               7
<PAGE>

                           with whom such Party proposes to enter into a
                           business relationship and to its advisers, investors
                           or potential investors (collectively "Third Party
                           Recipients") Provided That any such disclosure shall
                           be limited only to such Confidential Information as
                           is absolutely necessary and that the disclosing party
                           shall procure that any Third Party Recipient shall be
                           bound by obligations of confidentiality substantially
                           equivalent to the provisions of this Clause 16; and

                  16.3.3   at such times and in such manner as may be required
                           by law or any relevant regulatory authority or any
                           relevant Stock Exchange regulation Provided That in
                           such circumstances it shall give the other Party
                           reasonable advance notice of the extent to which and
                           the circumstances in which such disclosure is
                           required, shall limit such disclosure to what is
                           strictly necessary and required and shall endeavour
                           (insofar as is appropriate) to preserve the
                           confidentiality of the Confidential Information so
                           disclosed Provided That any party to whom such
                           disclosure is made shall be made fully aware of the
                           confidentiality obligations attaching to the
                           Confidential Information and shall (insofar as is
                           possible) procure substantially equivalent
                           obligations of confidentiality from any such party.

         16.4     Subject to the provisions of Clauses 16.3.2 and 16.5 neither
                  Party shall issue any press release or written communication
                  to be published by or in the media in any manner concerning
                  the subject matter of this Agreement without the prior written
                  consent of the other Party (such consent not to be
                  unreasonably withheld or delayed).

         16.5     The Parties shall on the Effective Date issue a press release
                  in the form attached as Schedule 4 concerning this Agreement.

         16.6     The obligations of both Parties under Clauses 16.1 to 16.4
                  (inclusive) shall remain in force for a period of ten years
                  after the Effective Date.

                                                                               8
<PAGE>

17       INDEMNITY

         17.1     Subject to Glycyx's compliance with its obligations in Clause
                  17.3, Shire agrees to indemnify and hold Glycyx and/or its
                  Affiliates harmless from and against any losses, claims,
                  damages, liabilities or actions (including reasonable
                  attorneys' fees and court and other expenses of litigation)
                  (collectively, "Liabilities") suffered or incurred in
                  connection with Third Party claims for personal injuries or
                  any Product recall to the extent caused by:

                  17.1.2   any defect in any Product or other material supplied
                           with any Product supplied by Shire and/or its
                           Affiliates and/or its Sublicensees or any
                           subcontractor of the same; or

                  17.1.3   any other act or omission (without regard to culpable
                           conduct) of Shire and/or its Affiliates and/or its
                           Sublicensees or any subcontractor of the same in
                           connection with the manufacture, marketing and
                           distribution of the Product by any of the same within
                           the Territory.

                  17.1.4   any failure to test for or provide adequate warnings
                           of adverse side effects to the extent such failure
                           arises out of acts or omissions in connection with
                           preclinical or clinical testing carried out in
                           respect of Product by or on behalf of Shire in the
                           Territory.

         17.2     Subject to Shire's compliance with its obligations in Clause
                  17.3, Glycyx agrees to indemnify and hold Shire and/or its
                  Affiliates harmless from and against any Liabilities suffered
                  or incurred in connection with Third Party claims for personal
                  injuries or any Product recall to the extent caused by:

                  17.2.2   any defect in any Product or other material supplied
                           with any Product sold by Glycyx and/or its Affiliates
                           and/or sublicensees of the same prior to the
                           Effective Date; or

                  17.2.3   any other act or omission (without regard to culpable
                           conduct) of Glycyx and/or its Affiliates and/or
                           sublicensees or any subcontractor of the same in
                           connection with the manufacture of the Product by any
                           of the same in the

                                                                               9
<PAGE>

                           Territory or the Excluded Territory or in connection
                           with the marketing and distribution of the Product by
                           any of the same in the Excluded Territory.

                  17.2.4   any failure to test for or provide adequate warnings
                           of adverse side effects to the extent such failure
                           arises out of acts or omissions in connection with
                           preclinical or clinical testing carried out in
                           respect of Product by or on behalf of Glycyx in the
                           Excluded Territory.

         17.3     In the event that either Glycyx or Shire (the "Indemnified
                  Party") intends to claim indemnification under this Clause 17
                  it shall promptly notify the other Party (the "Indemnifying
                  Party") in writing of any loss, claim, damage, liability or
                  action in respect of which the Indemnified Party or any of its
                  Affiliates intends to claim such indemnification, and the
                  Indemnifying Party shall have the right to participate in,
                  and, to the extent the Indemnifying Party so desires, to
                  assume the defence thereof with Counsel mutually satisfactory
                  to the Parties Provided That the Indemnified Party shall have
                  the right to retain its own Counsel, with the fees and
                  expenses to be paid by the Indemnifying Party, if
                  representation of the Indemnified Party by the Counsel
                  retained by the Indemnifying Party would be inappropriate due
                  to actual or potential differing interests between the
                  Indemnified Party and any other party represented by such
                  Counsel in such proceedings. This Clause 17 shall not apply to
                  amounts paid in settlement of any Liabilities if such
                  settlement is effected without the consent of the Indemnifying
                  Party, which consent shall not be unreasonably withheld or
                  delayed. The failure to deliver written notice to the
                  Indemnifying Party within a reasonable time after the
                  commencement of any such action, if prejudicial to the ability
                  of the Indemnifying Party to defend such action, shall relieve
                  the Indemnifying Party of any liability to the Indemnified
                  Party under this Clause 17, but the omission so to deliver
                  written notice to the Indemnifying Party shall not relieve it
                  of any liability that it may have to the Indemnified Party
                  otherwise than under this Clause 17. The Indemnifying Party
                  and its Affiliates shall cooperate fully with the Indemnified
                  Party and its legal representatives in the investigation of
                  any action, claim or liability covered by this
                  indemnification.

                                                                              10
<PAGE>

         17.4     EXCEPT AS PROVIDED IN THIS CLAUSE 17, IN NO EVENT SHALL EITHER
                  GLYCYX OR SHIRE OR THEIR AFFILIATES BE LIABLE FOR SPECIAL,
                  INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING
                  DAMAGES FOR LOSS OF PROFITS, PRODUCTION, USE OR SALES) BASED
                  ON CONTRACT, TORT OR ANY OTHER LEGAL THEORY. For the avoidance
                  of doubt nothing in this Agreement shall limit either Party's
                  liability to any Third Party for death or personal injury
                  caused by its negligence.

18       WITHHOLDING TAX

         18.1     The Parties have agreed that an appropriate and fair
                  apportionment of the sums payable in respect of the licence in
                  respect of the Formulation and Use Patents insofar as they
                  relate to the United Kingdom, is (pound)[*] ([*]). Apart from
                  the payments made under Clause 12.6, the balance of the
                  consideration payable under this Agreement is in respect of
                  the matters stated in Clause 12.7.

         18.2     As a consequence of Clause 18.1, the Parties agree that
                  withholding tax will apply to the said sum of (pound)[*] and
                  be deducted (at a rate of 22%) from payment of such sum under
                  the First Payment under Clause 12.1.1. The Parties agree that
                  otherwise no withholding tax deduction is required to be made
                  from payments due by Shire to Glycyx under the terms of this
                  Agreement.

         18.3     Notwithstanding the provisions of Clauses 18.1 and 18.2, in
                  the event that subsequently by reason of any Inland Revenue
                  determination, Shire is required to withhold tax on any
                  payment (or part thereof) to Glycyx under the terms of this
                  Agreement (in addition to withholding on the said sum of
                  (pound)[*]) the Parties will use all reasonable endeavours to
                  procure that the Revenue interpret an appropriate and fair
                  apportionment of the sums payable under this Agreement in
                  accordance with the apportionment agreed between the Parties
                  under Clause 18.1 and to minimise such withholding. In the
                  event that any such withholding is required, the Parties agree
                  to bear the cost of such withholding (and any interest and
                  penalties thereon), equally.

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                                                              11
<PAGE>

19       FORCE MAJEURE

         Neither Party shall be held liable or responsible to the other Party
         nor be deemed to have defaulted under or breached this Agreement for
         failure or delay in fulfilling or performing any term of this Agreement
         where such failure or delay is caused by or results from causes beyond
         the reasonable control of the affected Party including, fire, floods,
         embargoes, war, acts of war (whether war be declared or not),
         insurrections, riots, civil commotions, strikes, lockouts or other
         labour disturbances or acts of God.

20       ASSIGNMENT

         20.1     This Agreement may not be assigned or otherwise transferred,
                  nor may any rights or obligations hereunder be assigned or
                  transferred, by either Party without the written consent of
                  the other Party (such consent not to be unreasonably withheld
                  or delayed) except that either Glycyx or Shire may, without
                  such consent, assign this Agreement and the rights and
                  obligations (including all licences) hereunder:

                  20.1.1   in connection with the transfer or sale of all or
                           substantially all of its business in respect of the
                           Product (the relevant business being in the case of
                           Shire that within the Territory and in the case of
                           Glycyx its business in the Territory and in the
                           Excluded Territory) (but not in respect of part
                           thereof) or in the event of its merger or
                           consolidation with another company at any time during
                           the Term, Provided that in such case any permitted
                           assignee shall assume all obligations of its assignor
                           under this Agreement (including, for the avoidance of
                           doubt, the obligation of Shire to effect payment
                           under Clause 12.1); or

                  20.1.2   to any of its respective Affiliates, provided that,
                           in any such case, Glycyx or Shire (as the case may
                           be) shall:

                           (a)      procure the performance by any such
                                    Affiliate of all its obligations under this
                                    Agreement; and

                                                                              12
<PAGE>

                           (b)      in the event that any such Affiliate ceases
                                    to be an Affiliate, procure an assignment of
                                    this Agreement and the rights and
                                    obligations hereunder to itself or to any
                                    other of its respective Affiliates.

         20.2     No assignment shall relieve either Party of responsibility for
                  the performance of any accrued obligation which such Party
                  then has hereunder (save that Glycyx shall not be entitled to
                  receive any payment under Clause 12 and Shire shall not be
                  entitled to receive any Reimbursement under Clause 12.2, more
                  than once).

21       NOTICES

         21.1     Any notice required or permitted to be given or made under
                  this Agreement by one of the Parties hereto to the other shall
                  be in writing, delivered personally or by courier, or by post,
                  postage prepaid, addressed to such other Party at its address
                  indicated below, or to such other address as the addressee
                  shall have last furnished in writing to the addressor and
                  shall be effective upon receipt by the addressee.

                  If to Glycyx to;           Glycyx Pharmaceuticals Ltd

                                             Milner House, 18 Parliament Street

                                             Hamilton HM12 Bermuda

                                             Attention: President

                  With a copy to:            Salix Pharmaceuticals, Ltd

                                             4-101 Lake Boone Trail

                                             Suite 418

                                             Raleigh, NC 27607 U.S.A

                                             Attention: President

                                                                              13
<PAGE>

         If to Shire:                        Shire Pharmaceuticals Group PLC
                                             East Anton,
                                             Andover,
                                             Hampshire,
                                             SP10 5RG
                                             England
                                             Attention: Managing Director

         Any modification to this address must be notified in writing to the
         other Party in accordance with the terms of this Clause 21.

         21.2     In the absence of proof to the contrary notices properly sent
                  hereunder shall be deemed to have been duly served 4 (four)
                  working days after the date of dispatch.

         21.3     Copies of any notices dispatched in accordance with Clause
                  21.1 may be sent by facsimile transmission and for this
                  purpose the following fax numbers below shall apply:

                  21.3.1   in the case of Glycyx at (001 441) 296 5749 and
                           marked for the attention of the President, with a
                           copy to Salix Pharmaceuticals, Ltd at (+1) 919 788
                           8611 marked for the attention of the President;

                  21.3.2   in the case of Shire at (44) 1264 348468 and marked
                           for the attention of the Managing Director.

22       ENTIRE AGREEMENT

         This Agreement contains the entire understanding of each of the Parties
         hereto with respect to the transactions and matters contemplated hereby
         and supersedes all prior agreements and understandings relating to the
         subject matter hereof and no representations, inducements, promises or
         agreements, whether oral or otherwise, between the Parties not
         contained herein or incorporated herein by reference shall be

                                                                              14
<PAGE>

         of any force or effect. This Agreement may be amended, or any term
         hereof modified, only by a written instrument duly executed by both
         Parties hereto.

23       INDEPENDENT CONTRACTORS

         It is expressly agreed that Glycyx and Shire shall be independent
         contractors and that the relationship between the two Parties shall not
         constitute a partnership, joint venture or agency. Neither Glycyx nor
         Shire shall have the authority to make any statements, representations
         or commitments of any kind, or to take any action, which shall be
         binding on the other, without the prior written authorisation of the
         other Party so to do.

24       WAIVER

         The waiver by either Party of any right hereunder or of a breach by the
         other Party shall not be deemed a waiver of any other right hereunder
         or of any other breach or failure by said other Party whether of a
         similar nature or otherwise.

25       SEVERABILITY

         25.1     If at any time any provision of this Agreement shall for any
                  reason be held to be invalid, illegal or unenforceable in any
                  respect under the law of any applicable jurisdiction, such
                  invalidity, illegality or un-enforceability shall not affect
                  or impair;

                  25.1.2   the legality, validity, or enforceability in that
                           jurisdiction of any other provision of this
                           Agreement; or

                  25.1.3   the legality, validity or enforceability under the
                           law of any other jurisdiction of that or any other
                           provision of this Agreement.

         25.2     The Parties agree that they will negotiate in good faith to
                  replace any provision of this Agreement so held to be invalid,
                  illegal or unenforceable with a valid provision which is as
                  similar as possible in substance to the invalid, illegal or
                  unenforceable provision.

                                                                              15
<PAGE>

26       GOVERNING LAW

         Any controversy or claim of any nature arising out of or relating in
         any manner whatsoever to this Agreement or any breach of any terms of
         this Agreement shall be governed by and construed in all respects in
         accordance with the laws of England, without reference to the rules of
         conflict of laws thereof.

27       JURISDICTION

         Each Party hereby irrevocably acknowledges and agrees that the Courts
         of England shall have exclusive jurisdiction to resolve any controversy
         or claim of whatsoever nature arising out of or relating in any manner
         to this Agreement, the terms of this Agreement or any breach of this
         Agreement or such terms.

IN WITNESS WHEREOF the Parties have executed this Agreement as of the day and
year first above written.

                                                                              16
<PAGE>

                                   Schedule 1

                         The Formulation and Use Patents

<TABLE>
<CAPTION>
Formulation Patents

Country                App No              App Date           Pat No        Grant Date    Expiry Date
<S>                    <C>                 <C>                <C>           <C>           <C>

Belgium                 [*]                  [*]

France                  [*]                  [*]

Netherlands             [*]                  [*]               [*]             [*]           [*]

Norway                  [*]                  [*]

Sweden                  [*]                  [*]
</TABLE>

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.
<PAGE>

European Patent        [*]

Application
                       designated in
                       Austria,
                       Belgium,
                       Switzerland,
                       Germany,
                       Denmark,
                       Spain,
                       Finland,
                       France,
                       Great Britain,
                       Greece,
                       Ireland,
                       Italy,
                       Lithuania,
                       Luxembourg,
                       Monaco,
                       Netherlands,
                       Portugal and
                       Sweden.

Use Patent

Use of 2-hydroxy-5-phenylazobenzoic acid derivatives as colon cancer
chemopreventive and chemotherapeutic agents.

European Patent App No. [*] designating Austria, Belgium, Switzerland, Germany,
Denmark, Spain, France, Great Britain, Greece, Ireland, Italy, Lithuania,
Luxembourg, Monaco, The Netherlands, Portugal and Sweden.

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.
<PAGE>

                                   SCHEDULE 2

                              Assignment of Patents

      DATED                                                  2000
      -----------------------------------------------------------

                           Biorex Laboratories Limited

                                     - and -

                         Shire Pharmaceuticals Group plc

                      -------------------------------------

                                PATENT ASSIGNMENT

                     ---------------------------------------
<PAGE>

THIS DEED OF ASSIGNMENT is made on day of                               2000

BETWEEN:

1.       Biorex Laboratories Limited, a company incorporated in England and
         Wales having its registered office at 2 Crossfield Chambers, Gladbeck
         Way, Enfield, Middlesex, EN2 7HT, England ("Assignor") and,

2.       Shire Pharmaceuticals Group plc, a company incorporated in England and
         Wales having its registered office at East Anton, Andover, Hampshire,
         SP10 5RG, England ("Assignee").

WHEREAS

(A)      Assignor is the proprietor of the various patents and the supplementary
         protection certificate listed in the Schedule to this Deed (the
         "Patents") .

(B)      Pursuant to the terms of an agreement between Glycyx Pharmaceuticals,
         Ltd ("Glycyx") and Assignee of even date herewith (the "Master
         Agreement"), Glycyx agreed to procure the assignment by Assignor to
         Assignee of the Patents and Glycyx granted to Assignee certain rights
         in respect of the territories of Austria, Belgium, Denmark, Finland,
         France, Germany, Iceland, Republic of Ireland, Luxembourg, Norway, The
         Netherlands, Switzerland, Sweden and the United Kingdom (the "Shire
         Territory").

(C)      Assignor has agreed to assign the Patents to Assignee in consideration
         for the payment of good and valuable consideration by Assignee to
         Glycyx under the terms of the Master Agreement, such consideration to
         be held by Glycyx for and on behalf of Assignor.

NOW IT IS AGREED as follows:

1.1      In consideration of the payment of good and valuable consideration to
         be paid by Assignee to Glycyx under the terms of the Master Agreement,
         up to a maximum sum of (pound)7,779,000 such consideration to be
         payable exclusive of VAT, with any applicable VAT to be paid by
         Assignee to Assignor on the presentation of a valid VAT invoice,
<PAGE>

         and such consideration, exclusive of VAT to be held by Glycyx for and
         on behalf of Assignor, Assignor hereby assigns to Assignee:-

         1.1.1    the Patents and the full and exclusive benefit thereof; and

         1.1.2    the right to recover and take all such proceedings as may be
                  necessary for the recovery of damages or otherwise in respect
                  of all infringements of any of the Patents committed after the
                  date of this Deed.

1.2      The parties hereby agree that all sums received by Glycyx pursuant to
         the terms of the Master Agreement for and on behalf of Assignor in
         excess of the sum of (pound)[*], are in consideration of the assignment
         of the Patents pursuant to Clause 1.1 above.

2.       Assignor hereby represents and warrants to Assignee as at the date
         hereof that:

         2.1      The Patents are solely legally and beneficially owned by
                  Assignor free from all liens, charges, encumbrances and all
                  such other rights exercisable by third parties.

         2.2      So far as Assignor is aware, the compound previously sold by
                  or on behalf of Glycyx under the trade mark "Colazide" does
                  not infringe and is not alleged to infringe any third party
                  intellectual property rights in the Shire Territory.

         2.3      All renewal fees and steps for the maintenance of the Patents
                  have been paid and taken. For the avoidance of doubt, renewal
                  fees for the Patents are payable in July 2000 and Biorex shall
                  not be liable for the cost of these renewal fees.

         2.4      So far as Assignor is aware, the Patents are valid and
                  enforceable and so far as Assignor is aware no act has been
                  done or omission permitted whereby any of the Patents has
                  ceased to be enforceable.

         2.5      So far as Assignor is aware, no third party is infringing or
                  has infringed any of the Patents.

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.
<PAGE>

         2.6      Assignor is resident in the United Kingdom for corporation
                  tax purposes.

3.       Assignor hereby covenants with Assignee that Assignor will at the
         request and expense of Assignee execute all such instruments,
         applications, documents and do all such acts and other things as may
         reasonably be required by Assignee to enable Assignee or its nominee to
         enjoy the full benefits of the rights hereby assigned.

4.       This Deed shall be governed by and construed in accordance with the
         laws of England without regard to the conflicts of law provisions
         thereof and the parties hereby submit to the exclusive jurisdiction of
         the English courts.

                                    SCHEDULE

                                   The Patents

Country           Patent Number/                             Filing Date
                  Supplementary Protection
                  Certificate Number

UK                Patent No. [*]                                [*]

UK                Supplementary Protection
                  Certificate No. [*]

France            Patent No. [*]                                [*]

Germany           Patent No. [*]                                [*]

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.
<PAGE>

EXECUTED and DELIVERED as a DEED by the parties on the date set out at the head
of this Deed.

<TABLE>
<CAPTION>
<S>                                                          <C>
EXECUTED and DELIVERED as a DEED                             )  Signed:      ..................................
by Biorex Laboratories Limited acting by                     )
two of its Directors or its Company Secretary
and one of its Directors                                     )  Full Name:   ..................................
                                                             )
                                                                ....

                                                                Director/Company Secretary

                                                                Signed:      .................................

                                                                Full Name:   .................................
                                                                ...
                                                                Director/Company Secretary

EXECUTED and DELIVERED as a DEED                             )  Signed:      .................................
by Shire Pharmaceuticals Group plc acting
by two of its Directors or its Company                       )
Secretary and one of its Directors                           )  Full Name:   .................................
                                                             )

                                                                Director/Company Secretary

                                                                Signed:      .................................

                                                                Full Name:   .................................

                                                                Director/Company Secretary
</TABLE>
<PAGE>
                                   SCHEDULE 3

                            Assignment of Trade Marks

        DATED                                                2000
        ---------------------------------------------------------

                           Biorex Laboratories Limited

                                     - and -

                         Shire Pharmaceuticals Group plc

                      -------------------------------------

                              TRADE MARK ASSIGNMENT

                                AND LICENCE BACK

                     ---------------------------------------
<PAGE>

THIS DEED OF ASSIGNMENT is made on the                 day of               2000

BETWEEN:

(1)      Biorex Laboratories Limited, a company incorporated in England and
         Wales having its registered office at 2 Crossfield Chambers, Gladbeck
         Way, Enfield, Middlesex, EN2 7HT, England ("Assignor"); and

(2)      Shire Pharmaceuticals Group plc, a company incorporated in England and
         Wales having its registered office at East Anton, Andover, Hampshire,
         SP10 5RG, England ("Assignee").

WHEREAS

(A)      Assignor is the proprietor of the registrations of national trade marks
         and the community trade marks listed in Schedule 1 to this Deed (the
         "National Trade Marks" and the "Community Trade Marks" respectively).

(B)      Pursuant to the terms of an agreement between Glycyx Pharmaceuticals,
         Ltd ("Glycyx") and Assignee of even date herewith (the "Master
         Agreement"), Glycyx agrees to procure the transfer to Assignee of
         certain rights in Austria, Belgium, Denmark, Finland, France, Germany,
         Iceland, Republic of Ireland, Luxembourg, Norway, The Netherlands,
         Switzerland, Sweden and the United Kingdom (the "Shire Territory") and
         in particular to procure the assignment by Assignor to Assignee of the
         National Trade Marks and of the Community Trade Marks.

(C)      Assignor has agreed to assign all its right, title and interest in and
         to the National Trade Marks and the Community Trade Marks to Assignee
         in consideration of the payment of good and valuable consideration by
         Assignee to Glycyx under the terms of the Master Agreement, such
         consideration to be held by Glycyx for and on behalf of Assignor,
         subject to an exclusive licence back of the Community Trade Marks in
         respect of European Union member states outside the Shire Territory
         (the "Licensed Territory").

NOW IT IS AGREED as follows:
<PAGE>

1.       Subject to the licence back set out in Clause 2, and in consideration
         of the first (pound)[*] to be paid by Assignee to Glycyx under the
         terms of the Master Agreement, such consideration to be payable
         exclusive of VAT, with any applicable VAT to be paid by Assignee to
         Assignor on the presentation of a valid VAT invoice and such
         consideration, exclusive of VAT to be held by Glycyx for and on behalf
         of Assignor, Assignor hereby assigns to Assignee absolutely all its
         right, title and interest in and to the National Trade Marks and the
         Community Trade Marks together with all its right title and interest in
         and to the goodwill attaching to the National Trade Marks and the
         Community Trade Marks.

2.       Assignee hereby grants to Assignor a fully paid, royalty-free,
         perpetual, irrevocable, exclusive right and licence to use (and to
         sublicense the use of) the Community Trade Marks in the Licensed
         Territory, and subject to the laws of the country concerned, Assignor
         shall have an exclusive right to institute and pursue actions to
         prevent misuse of the Community Trade Marks throughout the Licensed
         Territory.

3.       The assignment of the Community Trade Marks to Assignee shall include
         the right for Assignee to bring proceedings against any third party
         infringing after the date of this Deed the rights of Assignee in the
         Community Trade Marks in the Shire Territory and/or in the National
         Trade Marks.

4.       Assignee shall take all steps that may be necessary to maintain the
         Community Trade Marks in force including but not limited to payment of
         renewal fees.

5.       Assignor shall provide to Assignee (at its request) all such assistance
         with any proceedings which may be brought by or against Assignee
         against or by any third party pursuant to Clauses 3 and 4 and Assignee
         shall indemnify Assignor in respect of all costs and expenses
         (including reasonable legal costs) actually incurred by it in providing
         Assignee with such assistance.

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.
<PAGE>

6.       Assignor hereby represents and warrants to Assignee as at the date
         hereof that:

         6.1      The National Trade Marks and the Community Trade Marks are
                  solely legally and beneficially owned by Assignor free from
                  all liens, charges, and other encumbrances.

         6.2      All renewal fees and steps for the maintenance of the National
                  Trade Marks and Community Trade Marks have been paid and
                  taken.

         6.3      So far as Assignor is aware, the National Trade Marks and
                  Community Trade Marks are valid and enforceable and so far as
                  Assignor is aware no act has been done or omission permitted
                  whereby any of the National Trade Marks and/or Community Trade
                  Marks has ceased or might cease to be enforceable.

         6.4      So far as Assignor is aware, no third party is infringing or
                  has infringed any of the National Trade Marks and/or the
                  Community Trade Marks in the Shire Territory.

         6.5      Assignor is resident in the United Kingdom for corporation tax
                  purposes.

7.       Assignor shall at the request and expense of Assignee execute all such
         instruments, applications, documents and do all such acts and other
         things as may reasonably be required by Assignee to enable Assignee or
         its nominee to enjoy the full benefits of the rights hereby assigned.
         Assignee shall at the request of Assignor execute all such instruments,
         application, documents and do all such act and other things as may
         reasonably be required by Assignor to enable Assignor or its nominee or
         sublicensee to enjoy the full benefit of the licence granted under
         Clause 2.

8.       Assignee shall comply with the terms of:

         8.1      the Prior Rights Agreement dated 4 June 1998 between Fink GmbH
                  and Assignor concerning the Community Trade Mark "COLAZID";
                  and
<PAGE>

         8.2      the Letter of Undertaking from Reckitt & Coleman (Overseas)
                  Limited to Beiersdorf AG dated 3 March 1989 concerning the
                  German National Trade Mark "COLAZIDE"

         both attached at Schedule 2 of this Assignment.

9.       This Deed shall be governed by and construed in accordance with the
         laws of England without regard to the conflicts of law provisions
         thereof and the parties hereby submit to the exclusive jurisdiction of
         the English courts.
<PAGE>

                                   SCHEDULE 1

                                 The Trade Marks

<TABLE>
<CAPTION>
              Country                              Number                           Registration
<S>                                                <C>                              <C>
              Austria                              117587                            "Colazide"
              Benelux                              428853                            "Colazide"
               France                              1396079                           "Colazide"
              Germany                             FR1157517                          "Colazide"
           Great Britain                           1234695                           "Colazide"
              Iceland                       837/1989 (Application
                                            Number: 115/1987)                        "Colazide"
              Ireland                              120566                            "Colazide"
               Norway                              138374                            "Colazide"
               Sweden                              221326                            "Colazide"
            Switzerland                            371887                            "Colazide"
              Iceland                             969/1997                           "Colazid"
               Norway                              187075                            "Colazid"
              Denmark                              6812/90                            "Premid"
        Community Trade Mark                      000501759                          "Colazid"
        Community Trade Mark                       267930                            "Colazide"
</TABLE>
<PAGE>

                                   SCHEDULE 2

<PAGE>

EXECUTED and DELIVERED as a DEED by the parties on the date set out at the head
of this Deed.

<TABLE>
<CAPTION>
<S>                                                          <C>
EXECUTED and DELIVERED as a DEED                             )  Signed:      .................................
by Biorex Laboratories Limited acting by                     )
two of its Directors or its Company Secretary                )  Full Name:   .................................
and one of its Directors                                     )

                                                                .....
                                                                Director/Company Secretary

                                                                Signed:      .................................

                                                                Full Name:   .................................
                                                                ...
                                                                Director/Company Secretary

EXECUTED and DELIVERED as a DEED                             )  Signed:      .................................
by Shire Pharmaceuticals Group plc acting                    )
by two of its Directors or its Company                       )  Full Name:   .................................
Secretary and one of its Directors                           )

                                                                .....
                                                                Director/Company Secretary

                                                                Signed:      .................................

                                                                Full Name:   .................................
                                                                ...
                                                                Director/Company Secretary
</TABLE>
<PAGE>

                                   SCHEDULE 4

                                  PRESS RELEASE

May __, 2000

Shire Pharmaceuticals and Salix Pharmaceuticals Announce Agreement for European
and Nordic Balsalazide Rights

Andover, UK / Raleigh, NC - Shire Pharmaceuticals Group plc (LSE: SHP.L; NASDAQ:
SHPGY) and Salix Pharmaceuticals, Ltd. (TSE: SLX) announced today that they have
signed an agreement under which Shire will purchase from Salix the exclusive
rights to balsalazide, a treatment for ulcerative colitis, for Austria, Belgium,
Denmark, Finland, France, Germany, Iceland, Republic of Ireland, Luxembourg,
Norway, The Netherlands, Switzerland, Sweden and the United Kingdom. Under the
agreement, Shire will pay Salix up to a total of US$ 24 million, including
approximately US$ 12.1 million in up-front fees comprising $ 9.6 million
((pound) 6.2 million) of cash and $ 2.5 million ((pound) 1.6 million) by way of
the issue of o new Shire ordinary shares. In addition, Shire may pay up to a
further US$ 12 million upon the achievement of certain milestones. Salix will
share a portion of these payments, including all of the new Shire ordinary
shares, with its licensor, Biorex Laboratories Limited, in accordance with
Salix's licence arrangement with Biorex.

The rights to market balsalazide in these countries were returned to Salix in
December 1999, having previously been licensed to AstraZeneca. Prior to this,
AstraZeneca (then Astra AB) had launched balsalazide in the United Kingdom
(under the trademark Colazide(R)), Sweden and Denmark and has continued to
distribute the product in these countries. Balsalazide is not yet registered in
France, Germany, Netherlands, Finland or the Republic of Ireland. Salix and
Shire have agreed to collaborate on pursuing approval in these countries, and
Salix has agreed to pay for certain clinical development costs, if required for
approval. Shire will have ownership of relevant trademarks and certain patents
and will take over the marketing and distribution of the product in the UK upon
transfer of the UK Product Licence Application, with France and Germany
following, once registered. Other countries covered by the agreement will be
managed by Shire through local distributors.
<PAGE>

Rolf Stahel, Chief Executive of Shire commented: "Balsalazide provides a good
example of the success of our `Search' strategy of seeking to acquire known,
proven molecules within our focus specialty areas. Balsalazide is prescribed
primarily by specialists, offers an immediate entry into gastroenterology in the
UK, and will, once registered, significantly strengthen our presence in France
and Germany following the acquisition of the Fuisz companies in 1999. "

"We are very pleased about partnering with Shire", said Robert Ruscher,
President and Chief Executive Officer of Salix. "We believe that Shire's
commitment to increase its presence in Europe will help to make balsalazide a
commercial success. This transaction exemplifies our strategy of partnering
product rights outside of the United States, and focusing our efforts on product
commercialization within the United States."

Application will be made for the o new Shire ordinary shares of 5p each to be
issued, which will rank pari passu in all respects with existing ordinary
shares, to be admitted to the Official List of the UK Listing Authority and to
trading on the London Stock Exchange. It is expected that dealings in the new
ordinary shares will commence on o [May/June] 2000.

                                    --Ends--

For further information, please contact:

Shire Pharmaceuticals Group plc:

Dr. Michael Gaitonde

Investor Relations

Shire Pharmaceuticals Group plc

+44 1264 348552

David Yates/Sophie Pender-Cudlip

Financial Dynamics

Shire Pharmaceuticals Group plc

+44 207 831 3113
<PAGE>

Salix Pharmaceuticals, Ltd.

Robert P. Ruscher

President and CEO

Salix Pharmaceuticals, Ltd.

(919) 788-8550

Notes to Editors:

3.2      Ulcerative colitis

Ulcerative colitis is a chronic, relapsing and remitting disease characterised
by acute non-infectious inflammation of the lining of the colon and rectum. In
the UK, the annual incidence is approximately 7 cases per 100,000 people1.
Ulcerative colitis affects men and women equally and may present at any age,
with common symptoms being abdominal pain, diarrhoea with blood and mucus,
weight loss and sometimes other complications such as arthritis. In the longer
term, in some patients, there may be an increased risk of colorectal cancer
developing. Management options include medical treatments such as 5-amino
salicylic acid derivatives (including balsalazide), which are used in the
treatment of mild to moderate disease, corticosteroids and immunosuppressants
for more severe disease and surgery, including colectomy. In the UK, France and
Germany alone, 1999 sales of prescription drugs in balsalazide's market sector
exceeded US$ 175 million2 with an average annual growth rate of approximately
6%.

Sources:

1. British Medical Journal 2000; 320:1119-1123.
<PAGE>

2. IMS data.

Shire Pharmaceuticals Group plc

Shire is an international specialty pharmaceutical company with a strategic
focus on four therapeutic areas: central nervous system disorders, metabolic
diseases, oncology and gastroenterology. The group has a sales and marketing
infrastructure with a broad portfolio of products targeting the US, Canada, UK,
Republic of Ireland, France, Germany and Italy, with plans to add other key
markets in due course. Shire's global search and development expertise has
already provided four marketed products, whilst the current pipeline of 14
projects includes one project in registration and nine projects post Phase II.
Shire is actively searching to acquire further marketed products and development
projects to enhance the potential for future growth, both organically and by
acquisition. Website: www.shire.com

Salix Pharmaceuticals, Ltd.

Salix Pharmaceuticals, Ltd. develops and markets prescription pharmaceutical
products for the treatment of gastrointestinal diseases. Salix's strategy is to
in-license proprietary therapeutic drugs with an existing database of positive,
late-stage clinical data in humans, to complete the development and to market
these products through its own specialty sales force and through selected
partners. Salix's lead product is balsalazide, a treatment for ulcerative
colitis. Salix has submitted a New Drug Application (NDA) to the United States
Food and Drug Administration (FDA) for the use of balsalazide as a treatment for
mild to moderate active ulcerative colitis, and has received an "approvable
letter" from the FDA. Additionally, Salix is in Phase III clinical development
of rifaximin, a broad-spectrum gastrointestinal specific antibiotic, licensed
from Alfa Wassermann, S.p.A., an Italian company. Rifaximin has been marketed in
Italy by Alfa Wassermann for several years and is used for several
gastrointestinal conditions including hepatic encephalopathy, infectious
diarrhea and prophylaxis prior to bowel surgery. Website: www.salixltd.com.

For the convenience of readers, an exchange rate of US$ 1.55 to (pound) 1.00 has
been used in this press release.
<PAGE>

THE "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995. The statements in this press release that are not historical facts are
forward-looking statements that involve risks and uncertainties, including but
not limited to, risks associated with the inherent uncertainty of pharmaceutical
research, product development and commercialisation, the impact of competitive
products, patents, and other risks and uncertainties, including those detailed
from time to time in periodic reports, including the F-4 Prospectus and the
Annual Report filed on Form 10K by Shire with the Securities and Exchange
Commission and the Reports filed on Forms 10-Q and 10-K by Salix with the
Securities and Exchange Commission.
<PAGE>

                                   SCHEDULE 5

                              Manufacturers of API

Omnichem S.A

Diosynth Limited
<PAGE>

  GLYCYX PHARMACEUTICALS LTD                   SHIRE PHARMACEUTICALS GROUP PLC

Signed                                      Signed

Title                                       TitleDATED 17th May 2000
                               -------------------

                           Biorex Laboratories Limited

                                      -and-

                           Glycyx Pharmaceuticals, Ltd

                                    AGREEMENT

THE INFORMATION HEREIN MARKED BY [*] HAS BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SEC.
<PAGE>

                                    CONTENTS
                                    --------

<TABLE>
<CAPTION>

                                                                                                           PAGE
                                                                                                           ----

<S>     <C>                                                                                                 <C>
1.    DEFINITIONS............................................................................................2
2.    REPRESENTATIONS AND WARRANTIES.........................................................................6
3.    GRANT AND ASSIGNMENT...................................................................................7
4.    SURVIVAL OF ORIGINAL AGREEMENT.........................................................................9
5.    PAYMENTS TO BIOREX....................................................................................11
6.    CONFIDENTIALITY.......................................................................................17
7.    INDEMNITY.............................................................................................19
8.    FORCE MAJEURE.........................................................................................21
9.    ASSIGNMENT............................................................................................21
10.   MISCELLANEOUS.........................................................................................21
SCHEDULE 1...................................................................................PATENT ASSIGNMENT
SCHEDULE 2...............................................................................TRADE MARK ASSIGNMENT
</TABLE>

                                       2
<PAGE>
This Agreement is made the 17th day of May 2000

B E T W E E N:

(1)      Biorex Laboratories Limited a company incorporated in England and Wales
         having its registered office at 2 Crossfield Chambers, Gladbeck Way,
         Enfield, Middlesex, EN2 7HT, England ("Biorex"); and

(2)      Glycyx Pharmaceuticals, Ltd. a company incorporated in Bermuda having
         its registered office at Milner House, 18 Parliament Street, Hamilton,
         HM12 Bermuda ("Glycyx").

W H E R E A S:

A.       By an agreement dated 17th September 1992 between Biorex and Glycyx
         (the "Original Agreement"), Biorex granted to Glycyx an exclusive
         licence to make, have made, use and sell and have sold certain products
         throughout the entire world excluding the United States of America,
         Japan, Korea and Taiwan.

B.       Shire Pharmaceuticals Group plc ("Shire") wishes to acquire a fully
         paid up right to manufacture, market and sell products licensed to
         Glycyx under the Original Agreement in certain European countries as
         specified in this Agreement (the "Shire Territory").

C.       Accordingly, Glycyx and Biorex wish to amend the Original Agreement to
         remove the Shire Territory from the scope of the Original Agreement and
         to enter into this Agreement in respect of the Shire Territory.

D.       Under this Agreement, in return for a share of the consideration to be
         paid by Shire to Glycyx, Biorex is willing to agree to:-

         (i)      assign to Shire its relevant patents and supplementary
                  protection certificate subsisting in the Shire Territory;

                                       1
<PAGE>

         (ii)     assign to Shire relevant national trade marks subsisting in
                  the Shire Territory;

         (iii)    assign to Shire relevant Community Trade Marks subject to a
                  licence back in respect of the European Union countries
                  outside the Shire Territory, to enable Biorex to sublicence
                  the same to Glycyx; and

         (iv)     license to Glycyx certain know-how in the Shire Territory to
                  enable Glycyx to sub-license the same to Shire.

NOW IT IS HEREBY AGREED AS FOLLOWS:

1.       DEFINITIONS

         For the purposes of this Agreement, the terms defined in this Clause
         shall have the meanings specified below:

1.1      "Affiliate" means any corporation or other entity which controls, is
         controlled by, or is under common control with, a party to this
         Agreement. A corporation or other entity shall be regarded as in
         control of another corporation or entity if it owns or directly or
         indirectly controls more than fifty percent (50%) of the voting stock
         or other ownership interest of the other corporation or entity, or if
         it possesses, directly or indirectly, the power to direct or cause the
         direction of the management and policies of the corporation or other
         entity.

1.2      "Approval" means the grant by the relevant regulatory authority of a
         marketing authorisation permitting the commercial marketing of a
         Product in a country in the Shire Territory and the approval by the
         applicable regulatory authority of such country of the Product for
         reimbursement under its national health and welfare system and pricing.

1.3      "Assignment" means each of the assignment of the Patents in the form
         contained in Schedule 1 and the assignment of the Trade Marks and the
         Community Trade Marks in the form contained in Schedule 2 and
         "Assignments" means both such assignments.

                                       2
<PAGE>

1.4      "Astra" means AstraZeneca AB (previously known as Astra AB) a company
         incorporated under the laws of Sweden (company registration number
         556011-7482) and whose principal place of business is at SE-151 85
         Sodertalje, Sweden.

1.5      "Balsalazide" means 5-[4(2-Carboxyethylcarbamoyl)-phenylazo]- salicylic
         acid disodium salt dihydrate or other salts and any prodrugs, analogs
         and isomers thereof.

1.6      "Biorex Initial Fees" shall be as defined in Clause 5.2.1.

1.7      "Biorex Transfer Fees" shall be as defined in Clause 5.2.2.

1.8      "Community Trade Marks" means the community trade mark "Colazide"
         registered number 267930 and the community trade mark "Colazid"
         registered number 000501759 both registered in the name of Biorex.

1.9      "Consideration Shares" shall be as defined in Clause 5.2.3.

1.10     "Cost of Goods Payments" shall be as defined in Clause 5.6.

1.11     "Effective Date" means the date of receipt by Glycyx' Solicitors of the
         Initial License Fees from Shire.

1.12     "Glycyx' Solicitors" means Covington & Burling, Registered Foreign
         Lawyers and Solicitors - London of Leconfield House, Curzon Street,
         London, W1Y 8AS.

1.13     "Initial License Fees" shall be as defined in Clause 5.2.1.

1.14     "Manufacturing Technology" means all methods, processes, designs, data,
         procedures and other information owned by or licensed to Biorex or its
         Affiliates during the term of this Agreement that are reasonably
         required for pilot production or commercial manufacturing of Products,
         including, without limitation, final quality assurance-quality control
         procedures, manufacturing procedures (including conditions, times,
         temperatures, pressures and rates), product and raw material
         specifications, and other

                                       3
<PAGE>

         technology related thereto, including all patent and other intellectual
         property rights thereto.

1.15     "MCA" means Medicines Control Agency, the UK Regulatory Authority
         established under Section 6, Medicines Act 1968.
1.16     "Milestone Sums" shall be as defined in Clause 5.3.1.

1.17     "National Trade Marks" means the trade mark "Colazide" and other marks
         used in connection with the Product in the Shire Territory and
         registered in the name of Biorex as trade marks within the Shire
         Territory as listed in schedule 1 to the Assignment contained in
         Schedule 2 of this Agreement, excluding the Community Trade Marks.

1.18     "Original Agreement" means the agreement dated 17 September 1992
         between Biorex and Glycyx as subsequently amended by the written
         agreement of both parties prior to the date of this Agreement.

1.19     "Patents" means the patents listed in the Schedule to the Patent
         Assignment contained in Schedule 1.

1.20     "Products" means products incorporating Balsalazide, whether or not
         such products are covered by the Patents, or any other material whose
         manufacture, use or sale by an unlicensed Third Party would constitute
         an infringement of any Valid Claim.

1.21     "Proprietary Information" shall have the meaning given to it in Clause
         6.1.

1.22     "Retained European Territory" means all member states for the time
         being of the European Union excluding the Shire Territory.

1.23     "Retained Milestone Sums" shall be as defined in Clause 5.3.1

                                       4
<PAGE>

1.24     "RetainedSums" means the sum of (pound)[*] retained by Glycyx from sums
         received from Shire under the terms of Clause 5.4.

1.25     "Shire" means Shire Pharmaceuticals Group plc, a company incorporated
         in England having its registered office at East Anton, Andover,
         Hampshire, SP10 5RG, England.

1.26     "Shire Agreement" means the agreement of even date herewith between
         Glycyx and Shire for the grant by Glycyx to Shire of certain rights in
         respect of the Products in the Shire Territory as such agreement may be
         amended or replaced by the parties thereto from time to time.

1.27     "Shire Territory" means Austria, Belgium, Denmark, Finland, France,
         Germany, Iceland, Republic of Ireland, Luxembourg, Norway, The
         Netherlands, Switzerland, Sweden and the United Kingdom.

1.28     "Technical Information" means all formulae, raw material and product
         specifications, designs and procedures, formulation data, processes and
         methods, pharmacology, toxicology and other preclinical tests results,
         clinical trials data and results, know-how, trade secrets, inventions
         and other scientific, medical, technical and marketing data and
         information, including all patent and other intellectual property
         rights thereto, which:

         (a)      are owned or controlled by, or licensed to, Biorex or its
                  Affiliates during the term of this Agreement, and

         (b)      that are reasonably necessary for the development,
                  manufacture, sale or use of Products.

                  Technical Information shall include information and methods
                  relating to the characterisation, synthesis, formulation,
                  stability, manufacture or assay of Balsalazide.

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                       5
<PAGE>

1.29     "Third Party" means any entity other than Glycyx or Biorex and their
         respective Affiliates.

1.30     "Trade Marks" means the National Trade Marks and the Community Trade
         Marks.

1.31     "Transfer Date" means the date on which the MCA approves and registers
         a transfer from Astra to Shire of the product registration granted in
         the United Kingdom to Astra numbered 0017/0394.

1.32     "Transfer Fees" shall be as defined in Clause 5.2.2.

1.33     "Valid Claim" means a claim of any issued and unexpired Patent, which
         has not been held permanently revoked, unenforceable or invalid by a
         decision of a court or other governmental agency of competent
         jurisdiction, unappealable or unappealed within the time allowed for
         appeal, and which has not been admitted to be invalid or unenforceable
         through reissue or disclaimer or otherwise.

1.34     "Working Day" means any day which is not a Saturday, a Sunday or a bank
         or public holiday in England, and "Working Days" shall be construed
         accordingly.

2.       REPRESENTATIONS AND WARRANTIES

2.1      Authorisation

         Biorex represents and warrants that (i) it has the full right and
         authority to grant the licenses and execute the Assignments provided in
         this Agreement and to perform its obligations hereunder; (ii) to the
         best of Biorex's knowledge, Glycyx may exercise the licenses granted to
         it under this Agreement without conflict with or infringement of any
         rights or alleged rights of any person or entity; (iii) Biorex has not
         made, and will not make during the term of this Agreement, any
         commitment or incur any obligation in conflict with the licenses
         granted in this Agreement; and (iv) as of the date of this Agreement,
         Biorex and its Affiliates have no patents or patent applications

                                       6
<PAGE>

         within the Shire Territory, other than the Patents, related to
         Balsalazide, or to prodrugs, analogs or isomers thereof, or
         improvements to any of the foregoing.

2.2      No Other Representations

         Except to the extent provided in this Clause 2, Biorex makes no
         representations, extends no warranties of any kind, either express or
         implied, with respect to the use, sale, or other disposition by Glycyx
         or its sublicensees or other transferees of Products incorporating or
         made by use of subject matter licensed under this Agreement. THE
         WARRANTIES EXPRESSLY SET FORTH IN THIS CLAUSE 2 BY EITHER PARTY ARE
         EXCLUSIVE AND NO OTHER WARRANTY, WRITTEN OR ORAL, INCLUDING WARRANTIES
         OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, IS EXPRESSED OR
         IMPLIED.

3.       GRANT AND ASSIGNMENT

3.1      Grant

         Biorex hereby grants to Glycyx for the duration set out in Clause 3.3
         (and subject to the Patents assigned to Shire), a fully paid,
         irrevocable, exclusive right and license (with the full and free right
         to sublicense) under the Technical Information and the Manufacturing
         Technology to develop, have developed, make, have made, use, sell and
         have sold Products within the Shire Territory.

3.2      Assignment

         On the Effective Date Biorex shall, by executing the Assignments,
         assign to Shire the Patents, the National Trade Marks and the Community
         Trade Marks subject to a licence back to use and sublicense the
         Community Trade Marks in the Retained European Territory.

3.3      Term

                                       7
<PAGE>

         3.3.1    This Agreement shall commence on the Effective Date and shall
                  expire on which ever is the later of (i) the date on which the
                  last of the Patents ceases to be in force and (ii) the date on
                  which the last payment due to Biorex under this Agreement has
                  been made by Glycyx.

         3.3.2    For the avoidance of doubt, on expiry of this Agreement (and
                  subject to the Patents assigned to Shire), Glycyx shall have a
                  perpetual, irrevocable, non-exclusive, royalty-free license
                  (with the right to sublicense) under the Technical Information
                  and Manufacturing Technology to make, have made, use, sell and
                  have sold Products in the Shire Territory.

         3.3.3    Neither party shall be entitled to terminate this Agreement
                  and the rights granted hereunder in any circumstances
                  whatsoever. In the event of any breach of the terms of this
                  Agreement by either party the rights of the other party in
                  respect of such breach shall be limited to damages or the
                  equitable remedies of specific performance or injunctive
                  relief and neither party shall be entitled to rescind or
                  terminate this Agreement in any circumstances whatsoever.

3.4      Documentation

         Each Party undertakes to execute (and Glycyx undertakes to procure
         execution by Shire) of such further documents in connection with the
         assignment of the Patents, the assignment of the National Trade Marks
         and the assignment and licence back of the Community Trade Marks or
         otherwise in connection with the licenses granted herein as may
         reasonably be required from time to time by the other party and to
         satisfy any requirements of national patent and trade mark laws to
         procure the same.

3.5      Shire Agreement

         3.5.1    Glycyx undertakes to use all reasonable commercial efforts to
                  ensure that Shire complies with all of Shire's obligations
                  under or in connection with the Shire Agreement, including but
                  not limited to:-

                                       8
<PAGE>

                  3.5.1.1  using all reasonable commercial endeavours to obtain
                           Approvals in each of France, Germany and the
                           Netherlands, as soon as reasonably practicable; and

                  3.5.1.2  making payment in full of all sums due to Glycyx
                           under the Shire Agreement.

         3.5.2    Glycyx shall within three Working Days of the Effective Date
                  provide to Biorex a true and complete copy of the Shire
                  Agreement as executed by the parties thereto and shall
                  promptly notify Biorex of any changes or additions made to the
                  Shire Agreement thereafter.

4.       SURVIVAL OF ORIGINAL AGREEMENT

4.1      The provisions of the Original Agreement shall be varied as follows:-.

         4.1.1    The definition of Territory at Article 1.23 of the Original
                  Agreement shall be amended and shall read as follows:

                  "Territory" means the entire world, but excluding the
                  following countries: United States (including its territories,
                  possessions and the Commonwealth of Puerto Rico), Japan,
                  Korea, Taiwan, Austria, Belgium, Denmark, Finland, France,
                  Germany, Iceland, Republic of Ireland, Luxembourg, Norway, The
                  Netherlands, Switzerland, Sweden and the United Kingdom.
                  Subject to the terms of the Canada - Mexico Agreement, Canada
                  and Mexico are included in this Agreement.

         4.1.2    The definition of Principal Markets at Article 1.14 of the
                  Original Agreement shall be amended and shall read as follows:

                  "Principal Markets" means South Africa, Australia, New
                  Zealand, Canada, Italy and Spain.

                                       9
<PAGE>

         4.1.3    Exhibit A of the Original Agreement shall be amended to
                  exclude the Patents to read as follows:

                  Patent                             Patent Number
                  -----------------------------------
                  Italy                              1,138,450

         4.1.4    Exhibit C of the Original Agreement shall be amended to
                  exclude the National Trade Marks and the Community Trade
                  Marks.

         4.1.5    The definitions of Community Trade Marks, Retained European
                  Territory and Shire at Clauses 1.8, 1.22 and 1.25 respectively
                  of this Agreement shall be included as new Articles 1.28, 1.29
                  and 1.30 respectively of the Original Agreement. Articles
                  6.3.1 to 6.3.4 of the Original Agreement shall be amended to
                  read as follows:

                  "6.3.1   Subject to the provisions of this Agreement, Biorex
                           hereby grants to Glycyx the exclusive right and
                           licence to use the Trade Mark in connection with the
                           exploitation of the Products in the Territory and the
                           Community Trade Marks in connection with the
                           exploitation of the Products in the Retained European
                           Territory throughout the term of this Agreement."

                  "6.3.2   Glycyx shall have the right to grant Sublicensees the
                           right to use the Trade Mark in connection with the
                           exploitation of the Products in the Territory and the
                           Community Trade Marks in connection with the
                           exploitation of the Products in the Retained European
                           Territory throughout the term of this Agreement,
                           subject to the provisions of this Agreement."

                  "6.3.3   Subject to the laws of the country concerned, Glycyx
                           shall have an exclusive right to institute and pursue
                           actions to prevent misuse of (i) the Trade Mark
                           throughout the Territory and (ii) the Community Trade
                           Marks throughout the Retained European Territory."

                                       10
<PAGE>

                  "6.3.4   Glycyx's rights under the Community Trade Marks shall
                           be subject to Shire (or Shire's assignees or
                           sublicencees) maintaining the Community Trade Marks"

4.2      For the avoidance of doubt, and subject to Clause 3.5, any liability of
         Glycyx under the Original Agreement to make any payment to Biorex in
         respect of any part of the Shire Territory is hereby expressly
         terminated and waived.

4.3      Subject to Glycyx's obligations set out in Clause 3.5, Biorex and
         Glycyx hereby further agree that all development and commercialisation
         obligations of Biorex and Glycyx arising under the Original Agreement
         are hereby deemed to have been fully satisfied insofar as such
         obligations relate to the Shire Territory.

4.4      The Original Agreement as amended pursuant to this Clause 4 shall
         continue in full force and effect.

5.       PAYMENTS TO BIOREX

5.1      Biorex Fees

         In consideration of the grant by Biorex to Glycyx of the rights and
         licenses under this Agreement and the execution of the Assignments
         Glycyx shall, in accordance with Clause 5.2 pay to Biorex certain sums
         in respect of Initial License Fees and Transfer Fees received by Glycyx
         and shall make further payment (if any) in respect of the Retained
         Milestone Sums under Clause 5.3 and the Retained Sums under Clause 5.4.
         Any such payment shall be made through the banking system into such
         bank account as Biorex shall designate in writing from time to time for
         the receipt of such payments. Payments made to Biorex shall be made in
         Pounds Sterling.

5.2      Payment of Biorex Initial Fees and Biorex Transfer Fees

         In accordance with the terms of the Shire Agreement:

                                       11
<PAGE>

         5.2.1    Glycyx' Solicitors shall receive from Shire the sum of
                  (pound)7,828,000 (the "Initial License Fees") on the Effective
                  Date and Glycyx shall, having retained sums in accordance with
                  Clause 5.4 below, and subject to Clause 5.2.3, procure that
                  within one Working Day of receipt by Glycyx' Solicitors of the
                  Initial License Fees there shall be paid to Biorex the sum of
                  (pound)[*] (the "Biorex Initial Fees").

         5.2.2    Glycyx' Solicitors shall receive from Shire the sum of
                  (pound)[*] (the "Transfer Fees") within 5 Working Days
                  of the Transfer Date and Glycyx shall subject to Clause 5.2.3,
                  procure that within 3 Working Days of receipt by Glycyx'
                  Solicitors of the Transfer Fees there shall be paid to Biorex
                  the sum of (pound)[*] (the "Biorex Transfer Fees").

         5.2.3    Glycyx may, at its option, to the extent permitted by law
                  procure the payment of up to (pound)1,600,000 of the Biorex
                  Initial Fees and up to (pound)600,000 of the Biorex Transfer
                  Fees by the allotment of fully paid Ordinary Shares of
                  (pound)0.05p each in the capital of Shire Pharmaceuticals
                  Group plc (the "Consideration Shares") upon terms whereby:

                  5.2.3.1  the Consideration Shares shall be allotted to Biorex
                           within 15 days of the Effective Date in respect of
                           the Biorex Initial Fees and within 15 days of the
                           Transfer Date in respect of the Biorex Transfer Fees;
                           and

                  5.2.3.2  the number of Consideration Shares shall be
                           calculated by reference to the mid-market quotation
                           as derived from the London Stock Exchange daily
                           Official List of Ordinary Shares in Shire
                           Pharmaceuticals Group plc averaged over the period of
                           5 (five) trading days immediately preceding the
                           Effective Date in respect of the Biorex Initial Fees
                           and the Transfer Date in respect of the Biorex
                           Transfer Fees; and

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                       12
<PAGE>

                  5.2.3.3  the Consideration Shares shall rank pari passu in all
                           respects with the other Ordinary Shares in issue in
                           the capital of Shire Pharmaceutical Group plc; and

                  5.2.3.4  the Consideration Shares shall on allotment be
                           admitted to the Official List of the London Stock
                           Exchange and may be traded freely upon allotment.

5.3      Milestone Sums

         5.3.1    In accordance with Clauses 12.1.3, 12.1.4, 12.1.5 and 12.1.6
                  of the Shire Agreement certain sums are payable by Shire to
                  Glycyx on the occurrence of certain events (the "Milestone
                  Sums"). [******] Biorex further acknowledges that Glycyx is
                  required to retain cash or cash equivalent balances of not
                  less than the maximum liability to effect reimbursement to
                  Shire remaining outstanding from time to time under Clause
                  12.2 of the Shire Agreement (the "Retained Milestone Sums")
                  during the period to whichever is the earlier of the date of
                  payment (if any) of any reimbursement due in respect of the
                  year to 31 December 2005 and 30 April 2006.

         5.3.2    Glycyx shall pay to Biorex [*]% of the balance (if any) of the
                  Milestone Sums remaining after any reimbursement to Shire in
                  accordance with the provisions of the Shire Agreement, within
                  three Working Days of the date upon which Glycyx is no longer
                  required under the Shire Agreement to retain the Retained
                  Milestone Sums.

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                       13
<PAGE>

5.4      Retained Sums

         Biorex acknowledges that under the terms of the Shire Agreement, Glycyx
         has assumed an obligation to pay (up to a maximum of (pound)[*]) the
         cost of any clinical trial effected in order to obtain Approval of a
         Product in France, Germany and/or The Netherlands. Glycyx shall retain
         the sum of (pound)[*] from the Initial License Fees received by it from
         Shire ("the Retained Sums"). Under the terms of the Shire Agreement
         Glycyx is required to retain cash or cash equivalent balances of not
         less than the maximum liability to effect reimbursement remaining
         outstanding from time to time until the earlier of:

         5.4.1    the reimbursement by Glycyx to Shire of (pound)[*] ([*] pounds
                  Sterling) in total in connection with the conduct of such
                  clinical trial;

         5.4.2    the grant of the first Approval in all of Germany, France and
                  the Netherlands; and

         5.4.3    the notification by Shire to Glycyx that it does not intend
                  carrying out such clinical trial or otherwise that Glycyx is
                  released from any obligation to reimburse Shire in respect of
                  such clinical trial.

         Within three Working Days of the date on which Glycyx is no longer
         required under the Shire Agreement to retain the Retained Sums, Glycyx
         shall pay to Biorex [*]% of the balance of the Retained Sums (if any)
         remaining after payment of the cost of such clinical trial.

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                       14
<PAGE>

5.5      Interest

         Glycyx shall keep any and all cash or cash equivalent balances required
         under the terms of the Shire Agreement to be maintained by Glycyx in
         relation to the Retained Milestone Sums and the Retained Sums in an
         account whereby such sums shall earn a commercial rate of interest. On
         payment to Biorex of any part of the Retained Milestone Sums or
         Retained Sums Glycyx shall in addition pay to Biorex [*]% of all
         interest earned on the Retained Milestone Sums and the Retained Sums.

5.6      Cost of Goods Payments

         5.6.1    In the Shire Agreement, Glycyx has undertaken to procure that
                  the cost of goods to Shire in respect of Balsalazide ordered
                  and delivered to Shire in the period from the Effective Date
                  to 31 December 2001 (up to a maximum quantity of [*] ([*])
                  tonnes)) shall be (pound)[*] per kg (the "Maximum Price") and
                  that in the event that Shire is required to pay in excess of
                  the Maximum Price to suppliers of Balsalazide, Glycyx shall
                  reimburse to Shire the aggregate total excess (the "Cost of
                  Goods Payment").

         5.6.2    In the event that under the Shire Agreement Glycyx is required
                  to make and makes any Cost of Goods Payment to Shire it shall
                  notify Biorex in writing and Biorex shall within 30 days of
                  receipt of any such notification pay to Glycyx [*]% of any
                  such Cost of Goods Payment.

         5.6.3    Glycyx shall in accordance with the terms of the Shire
                  Agreement endeavour to minimise any Cost of Goods Payment that
                  it is required to make to Shire.

[*] CONFIDENTIAL TREATMENT REQUESTED; CERTAIN INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SEC.

                                       15
<PAGE>

5.7      Late Payments

         Any payments that are not paid on or before the date such payments are
         due under this Agreement shall bear interest at the rate of two per
         cent above the base lending rate for the time being of Barclays Bank
         Plc, London calculated on the number of days such payment is
         delinquent. This Clause 5.7 shall in no way limit any other remedy
         available to either party.

5.8      Withholding Tax

         5.8.1    All sums due hereunder shall be paid without deduction or
                  withholding in respect of duties, taxes, taxation or charges
                  otherwise of a taxation nature unless the deduction or
                  withholding is required by law. In the event that such
                  deductions or withholdings are required by law, the payer
                  shall:-

                  5.8.1.1  ensure that the deduction or withholding does not
                           exceed the minimum amount legally required;

                  5.8.1.2  account to the relevant taxation or other authorities
                           within the period for payment permitted by the
                           applicable law the full amount of the deduction or
                           withholding; and

                  5.8.1.3  furnish to the payee within the period for payment
                           permitted by the relevant law either an official
                           receipt of the relevant taxation authorities involved
                           in respect of all amounts so deducted or withheld or
                           if such receipts are not issued by the taxation
                           authorities concerned a certificate of deduction or
                           equivalent evidence of the relevant deduction or
                           withholding.

         5.8.2    For the purpose of calculating the share of the Retained Sums
                  and the Milestone Sums due to Biorex under this Agreement,
                  Glycyx shall be deemed to have received payment in full from
                  Shire of the Milestone Sums and the Retained Sums under the
                  Shire Agreement without any deduction or

                                       16
<PAGE>

                  withholding by Shire, in respect of duties, taxes or other
                  charges of a taxation nature.

         5.8.3    If Biorex is unable to claim credit or relief from double
                  taxation for any amounts withheld or deducted from any sums
                  due to Biorex under this Agreement, Glycyx shall on receipt of
                  notification by Biorex, pay to Biorex a payment equal to the
                  amount necessary to ensure that Biorex receives such sums as
                  it would have received in the absence of any such deduction or
                  withholding by Glycyx.

         5.8.4    Without prejudice to the provisions of Clause 5.8.1 above, the
                  parties shall co operate and use reasonable commercial efforts
                  to ensure that the amount of any deductions or withholdings
                  required by law are kept to a minimum

5.9      The parties will negotiate in good faith the apportionment of the
         consideration payable under this Agreement between the assignment of
         the Patents, the assignment of the National Trade Marks and the
         Community Trade Marks, and the variation to the licence of the
         Technical Information and Manufacturing Technology.

6.       CONFIDENTIALITY

6.1      General

         Except as expressly otherwise provided in this Agreement, each party
         shall hold in confidence and not use or disclose to any Third Party
         (other than employees, consultants, advisors, sublicensees and Third
         Parties with whom such party is considering entering into a business
         relationship who are similarly bound in writing) any product,
         technical, manufacturing, process, marketing, financial, business or
         other information, ideas, or know-how of the other party that is
         identified in writing by the other party as confidential or has, under
         the provisions of the Original Agreement, been so identified
         ("Proprietary Information") at the time of its disclosure or within
         thirty (30) days thereafter provided, however, that Proprietary
         Information of a party shall not include:

                                       17
<PAGE>

         6.1.1    items which at the time of disclosure are published or
                  otherwise generally available to the public;

         6.1.2    items which, after disclosure to the other party, are
                  published or become generally available to the public through
                  no breach of this Agreement by the other party or the other
                  party's employees or agents; or

         6.1.3    items which the other can document were or are (i) legally in
                  its possession at the time of disclosure, free of any
                  obligation of confidentiality, and not acquired directly or
                  indirectly from such party; or (ii) independently developed.

6.2      Exceptions

         A party may disclose Proprietary Information of the other:

         6.2.1    In connection with, and in such manner as may be required by,
                  law or any relevant regulatory authority, or in compliance
                  with laws or regulations relating to registrations or sale of
                  securities or product approval;

         6.2.2    If such information is also rightfully acquired from a Third
                  Party who, to the best of such party's knowledge and belief,
                  is entitled to rightfully make such disclosure, but only to
                  the extent such party complies with any restrictions imposed
                  by the Third Party;

         6.2.3    To business advisers and any Third Party with whom such Party
                  proposes to enter into a business relationship and to its
                  advisers, investors or potential investors (collectively
                  "Third Party Recipients") Provided That any such disclosure
                  shall be limited only to such Proprietary Information as is
                  absolutely necessary and that the disclosing party shall
                  procure that any Third Party Recipient shall be bound by
                  obligations of confidentiality substantially equivalent to the
                  provisions of this Clause 6.

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         6.2.4    After five (5) years from the date such information (other
                  than Manufacturing Technology and Technical Information) is
                  disclosed to it.

6.3      Licensed Information

          Any Proprietary Information of or used by Biorex which is or may be
          subject to an exclusive licence to Glycyx hereunder, shall not be
          disclosed by Biorex to any Third Party for use in the Shire Territory.

6.4      Terms of this Agreement

         Glycyx and Biorex agree not to disclose the financial terms or
         conditions of this Agreement to any Third Party without the prior
         written consent of the other party hereto (which consent shall not be
         unreasonably withheld), except as required by applicable law, or to
         professional advisers, or to persons with whom Biorex or Glycyx has
         entered into or proposes to enter into a business relationship for the
         purposes of raising capital to run their business, and then only under
         conditions of confidentiality.

7.       INDEMNITY

7.1      Glycyx

         Subject to Biorex's compliance with its obligations set forth in Clause
         7.2 below, Glycyx agrees to indemnify and hold Biorex, its Affiliates
         and their employees and agents harmless from and against any losses,
         claims, damages, liabilities or actions (including reasonable
         attorneys' fees and court and other expenses of litigation)
         (collectively, the "Liabilities") suffered or incurred in connection
         with Third Party claims for personal injuries or any product recall to
         the extent caused by: (a) any failure to test for or provide adequate
         warnings of adverse side effects to the extent such failure arises out
         of acts or omissions in connection with preclinical or clinical testing
         carried out in respect of the Product by or on behalf of Shire in the
         Shire Territory; (b) any manufacturing defect in any Product or other
         material manufactured by Glycyx, its sublicensees, any subcontractor of
         Glycyx or its sublicensees or Shire or its sublicensees in the Shire
         Territory; or (c) any other act or omission (without regard to culpable
         conduct) of Glycyx, its sublicensees any subcontractor of Glycyx or its
         sublicensees or Shire

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         or its sublicensees in connection with the activities contemplated
         under this Agreement in the Shire Territory, except to the extent such
         Liabilities resulted from negligence, recklessness or intentional
         misconduct of Biorex.

7.2      Procedure

         In the event that Biorex intends to claim indemnification under this
         Clause 7 it shall promptly notify Glycyx in writing of any loss, claim,
         damage, liability or action in respect of which Biorex or any of its
         Affiliates, employees or agents intend to claim such indemnification,
         and Glycyx shall have the right to participate in, and, to the extent
         Glycyx so desires, jointly with any other indemnifying party similarly
         noticed, to assume the defence thereof with counsel mutually
         satisfactory to the parties; provided, however, that Biorex shall have
         the right to retain its own counsel, with the fees and expenses to be
         paid by Biorex, if representation of Biorex by the counsel retained by
         Glycyx would be inappropriate due to actual or potential differing
         interests between Biorex and any other party represented by such
         counsel in such proceedings. The indemnity agreement in this Clause 7
         shall not apply to amounts paid in settlement of any loss, claim,
         damage, liability or action if such settlement is effected without the
         consent of Glycyx, which consent shall not be withheld unreasonably.
         The failure to deliver written notice to Glycyx within a reasonable
         time after the commencement of any such action, if prejudicial to its
         ability to defend such action, shall relieve Glycyx of any liability to
         Biorex under this Clause 7, but the omission so to deliver written
         notice to Glycyx shall not relieve it of any liability that it may have
         to Biorex otherwise than under this Clause 7. Biorex, its employees and
         agents, shall cooperate fully with Glycyx and its legal representatives
         in the investigation of any action, claim or liability covered by this
         indemnification.

                                       20
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8.       FORCE MAJEURE

         Neither party shall be held liable or responsible to the other party
         nor be deemed to have defaulted under or breached this Agreement for
         failure or delay in fulfilling or performing any term of this Agreement
         when such failure or delay is caused by or results from causes beyond
         the reasonable control of the affected party or from fire, floods,
         embargoes, war, acts of war (whether war be declared or not),
         insurrections, riots, civil commotions, strikes, lockouts or other
         labour disturbances, acts of God or acts, omissions or delays in acting
         by any governmental authority or the other party.

9.       ASSIGNMENT

9.1      This Agreement may not be assigned or otherwise transferred, nor,
         except as expressly provided hereunder, may any right or obligation
         hereunder be assigned or transferred, by either party without the
         written consent of the other party; provided, however that either
         Biorex or Glycyx may, without such consent, assign this Agreement and
         its rights and obligations hereunder in connection with the transfer or
         sale of all or substantially all of its business, if such assets
         include substantially all of the assets relating to its performance of
         its respective obligations hereunder, or in the event of its merger or
         consolidation with another company at any time during the term of this
         Agreement. Any purported assignment in violation of the preceding
         sentence shall be void. Any permitted assignee shall assume all
         obligations of its assignor under this Agreement. No assignment shall
         relieve either party of responsibility for the performance of any
         accrued obligation which such party then has hereunder.

9.2      If Shire assigns the Shire Agreement to any third party, any reference
         to Shire in this Agreement shall, where appropriate, be deemed to refer
         to the third party assignee.

10.      MISCELLANEOUS

10.1     Notices

         Any notice required or permitted to be given or made under this
         Agreement by one of

                                       21
<PAGE>

         the parties hereto to the other shall be in writing, delivered
         personally or by facsimile (and promptly confirmed by personal delivery
         or courier) or courier, postage prepaid, addressed to such other party
         at its address indicated below, or to such other address as the
         addressee shall have last furnished in writing to the addressor and
         shall be effective upon receipt by the addressee.

         Glycyx Pharmaceuticals Ltd
         Milner House, 18 Parliament Street
         Hamilton HM12 Bermuda
         Attention: President

         Biorex Laboratories, Ltd
         2 Crossfield Chambers
         Gladbeck Way
         Enfield, Middlesex EN2 7HT
         Attention: Managing Director

10.2     Applicable Law

         This Agreement shall be governed by and construed in accordance with
         the laws of England, without regard to conflicts of laws provisions and
         the parties hereby submit to the exclusive jurisdiction of the English
         Courts.

10.3     No Consequential Damages

         EXCEPT AS PROVIDED IN CLAUSE 7, IN NO EVENT SHALL EITHER GLYCYX OR
         BIOREX OR THEIR AFFILIATES BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL
         OR CONSEQUENTIAL DAMAGES (INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS
         OF PROFITS, PRODUCTION, USE OR SALES) BASED ON CONTRACT, TORT OR ANY
         OTHER LEGAL THEORY.

10.4     Entire Agreement

                                       22
<PAGE>

         This Agreement contains the entire understanding of the parties with
         respect to the subject matter hereof in respect of the Shire Territory.
         All express or implied agreements and understandings, either oral or
         written, heretofore made in relation to any part of the Shire Territory
         (including without limitation those set out in the Original Agreement
         to the extent they relate to any part of the Shire Territory,) are
         expressly excluded. This Agreement may be amended, or any term hereof
         modified, only by a written instrument duly executed by both parties
         hereto.

10.5     Headings

         The captions to the several Clauses and Sections hereof are not a part
         of this Agreement, but are merely guides or labels to assist in
         locating and reading the several Clauses and sections hereof.

10.6     Independent Contractors

         It is expressly agreed that Glycyx and Biorex shall be independent
         contractors and that the relationship between the two parties shall not
         constitute a partnership, joint venture or agency. Neither Glycyx nor
         Biorex shall have the authority to make any statements, representations
         or commitments of any kind, or to take any action, which shall be
         binding on the other, without the prior written authorisation of the
         other party to do so.

10.7     Waiver

         The waiver by either party of any right hereunder or of the failure to
         perform or of a breach by the other party shall not be deemed a waiver
         of any other right hereunder or of any other breach or failure by said
         other party whether of a similar nature or otherwise.

10.8     Further Assurances

         Glycyx shall use commercially reasonable efforts to ensure that each of
         its sublicensees and sub contractors shall observe and perform all the
         obligations and

                                       23
<PAGE>

         restrictions applicable to it under this Agreement.

10.9     Severability

         In case any one or more of the provisions contained in this Agreement
         shall for any reason be held to be invalid, illegal or unenforceable in
         any respect, such invalidity, illegality or unenforceability shall not
         affect any other provisions hereof, but this Agreement shall be
         construed as if such invalid or illegal or unenforceable provisions had
         never been contained herein.

                                       24
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AGREED by the parties through their duly authorised representatives on the date
written at the top of the first page of this Agreement:-

For and on behalf of                      For and on behalf of
Biorex  Laboratories Limited              Glycyx Pharmaceuticals, Ltd

Signed    ..........................      Signed    ..........................

Full Name ..........................      Full Name ..........................

Title     ..........................      Title     ..........................

                                       25

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