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New Insulin Manufacturer Enters the Diabetes Arena

We will soon have even more choices. Biodel Inc. completes enrollment of two pivotal phase III clinical trials of VIAject and plans manufacturing facility for VIAject Biodel Inc. today announced that the Company has completed enrollment of its two pivotal Phase III clinical trials of VIAject(TM), a rapid-acting injectable meal-time insulin for use by patients with Type 1 and Type 2 diabetes. The Company also announced its intention to build and operate a fill and finish manufacturing facility for VIAject(TM), on the campus of its current headquarters in Danbury, Connecticut.

We are pleased to have completed enrollment of the VIAject(TM) clinical trials on schedule," commented Solomon S. Steiner, Ph.D., Chairman and Chief Executive Officer of Biodel. "We believe that VIAject(TM)’s superior pharmacokinetic and pharmacodynamic profile should improve the treatment of millions of patients with diabetes."

Biodel has now enrolled over 400 patients with Type 1 diabetes at approximately 60 clinical sites in the United States, Europe, and Asia, and over 400 patients with Type 2 diabetes at approximately 50 clinical sites in the United States, Europe, and Asia. Both studies are multi-center, open label and six months in duration, comparing the effects of VIAject(TM) to Humulin(R) R, the leading recombinant human insulin. Biodel expects to complete these trials and, if the trials are successful, the Company intends to submit a New Drug Application for VIAject(TM) to the Food and Drug Administration by the end of 2008.

To prepare for commercialization of VIAject(TM), the Company plans to build a fill and finish manufacturing facility which will be dedicated to manufacturing a full line of VIAject(TM) liquid formulations and presentations. The dedicated manufacturing facility will improve margins, provide superior quality control, and better inventory control. Biodel anticipates that the facility will cost under $15 million and will be available for commercial production in 2009.

Biodel Inc. is a specialty biopharmaceutical company focused on the development and commercialization of innovative treatments for endocrine disorders, such as diabetes and osteoporosis. Biodel’s lead product candidates are all insulin formulations developed by using the VIAdel(TM) technology, which reformulates existing FDA-approved peptide drugs. The Company’s lead product candidate, VIAject(TM), is a rapid-acting injectable meal-time insulin in development for use by patients with Type 1 or Type 2 diabetes. VIAject(TM) is currently being tested in two pivotal Phase III clinical trials. Biodel’s pipeline also includes VIAtab(TM), a sublingual tablet formulation of insulin in Phase I clinical development, and two osteoporosis product candidates, both of which are in pre-clinical studies. For further information regarding Biodel, please visit the Company’s website at www.biodel.com.