DARA BioSciences and Bayer Pharmaceuticals Corporation Sign Exclusive License Agreement

DARA BioSciences and Bayer Pharmaceuticals Corporation Sign Exclusive License Agreement

October 17, 2007

    RALEIGH, N.C. and WEST HAVEN, Conn., Oct. 17
/Xinhua-PRNewswire/ -- DARA BioSciences, Inc. and Bayer
Pharmaceuticals Corporation (BPC), a U.S. subsidiary of
Bayer HealthCare AG signed a license agreement granting
DARA BioSciences exclusive worldwide rights to a series of
patents and compounds for the treatment of metabolic
diseases, in particular type 2 diabetes and dyslipidemia. 
Lead compounds are in later preclinical development. 

    Under the terms of the agreement DARA BioSciences will
develop and commercialize products while Bayer will receive
an upfront payment, milestone payments and royalties during
the development and commercialization.  In addition, Bayer
has certain rights to commercialize products emanating from
this development program.   

    Richard A. Franco, Sr., President and Chief Executive
Officer, stated, "DARA BioSciences' licensing-in of
the Bayer technology demonstrates our commitment to
exploring new alternatives in the treatment of metabolic
diseases including diabetes.  This transaction also
demonstrates our continuing success in executing our
strategy to identify new opportunities in order to expand
and diversify our product portfolio.  We look forward to
the opportunity to work with Bayer."

    The WHO estimates that globally over 170 million people
have diabetes. Type 2 diabetes accounts for 90% to 95% of
all cases of diabetes. Worldwide the costs associated with
treating diabetes and its complications are estimated to
exceed $200 billion a year. By 2030 the prevalence of
diabetes is predicted to double, driven by adverse
lifestyle changes which have seen an explosion in the
incidence of obesity, a risk factor for type 2 diabetes.
Worldwide, diabetes is a huge and growing problem for which
new treatments are needed.

    About Bayer HealthCare

    The Bayer Group is a global enterprise with core
competencies in the fields of health care, nutrition and
high-tech materials. Bayer HealthCare, a subsidiary of
Bayer AG, is one of the world's leading, innovative
companies in the healthcare and medical products industry
and is based in Leverkusen, Germany. The company combines
the global activities of the Animal Health, Consumer Care,
Diabetes Care and Pharmaceuticals divisions.  Bayer
HealthCare's aim is to discover and manufacture products
that will improve human and animal health worldwide. Find
more information at http://www.bayerhealthcare.com.

    About DARA BioSciences, Inc.

    DARA BioSciences(TM), Inc. ("DARA") is a
Raleigh, North Carolina-based development-stage
pharmaceutical company that acquires promising therapeutic
molecules and medical technologies directly or through
investment in established companies. DARA focuses its
therapeutic development efforts on small molecules from
late preclinical development through phase 2 clinical
trials. DARA is developing a portfolio of therapeutic
candidates for neuropathic pain, metabolic diseases
including type 2 diabetes, and dermatological disorders. 
On October 10, 2007, DARA announced an agreement to merge
with Point Therapeutics, Inc. (Nasdaq: POTP). 

    For more information please contact DARA at
919-872-5578 or visit our web site at
http://www.darabiosciences.com. 

    Please Note: This press release contains
forward-looking statements regarding future events. These
statements are just predictions and are subject to risks
and uncertainties that could cause the actual events or
results to differ materially. These risks and uncertainties
include risks of testing of drugs for proof of principle,
risks of regulatory review and clinical trials,
competition, market acceptance for approved products, if
any, and intellectual property risks. 


    For more information, please contact:

    DARA BioSciences

     John Didsbury, Ph.D.
     Chief Scientific Officer
     Phone: [phone]

     Lynn H. Morris, Sr. Manager
     Investor Relations & Corporate Operations
     Phone: [phone]

    Bayer HealthCare Pharmaceuticals 

     Meredith Fischer
     Corporate Communications
     Phone: [phone]