Exhibit 99.1

                               [GRAPHIC OMITTED]


                   CHEMGENEX TEAM PINPOINTS INFLAMMATION GENE

MELBOURNE, AUSTRALIA, AND MENLO PARK, CALIFORNIA U.S.A (OCTOBER 10, 2005):
ChemGenex Pharmaceuticals Limited (ASX: CXS; NASDAQ: CXSP) announced today that
a team of its international collaborators has pinpointed a gene on chromosome 15
that plays a significant role in the regulation of inflammation, a finding with
implications for a wide range of disorders, including cancer, cardiovascular
disease, diabetes, obesity, Alzheimer's, and infections.

The findings are published in the October 9 online issue of the leading
international journal Nature Genetics.

The multi-disciplinary team assembled by ChemGenex included scientists from
Deakin University (Geelong, Australia), the International Diabetes Institute
(Melbourne, Australia), the Southwest Foundation for Biomedical Research (SFBR)
(San Antonio, USA) and the Medical College of Wisconsin (Milwaukee, USA).

Deakin University, the International Diabetes Institute, the SFBR and the
Medical College of Wisconsin have also issued press releases relating to this
discovery which investigators believe will be of great interest to biomedical
and pharmaceutical researchers because of an already heightened understanding of
the role of inflammation in many human disorders.

Greg Collier, Ph.D., Chief Executive Officer of ChemGenex, said the discovery of
SEPS1 and its function was a significant development and showed the breadth of
expertise in the company, which also has two oncology drugs in phase 2 clinical
trials. "This is outstanding recognition for our research collaborators and for
ChemGenex. We have a strong portfolio of intellectual property related to SEPS1,
and believe that this discovery may pave the way for future personalized
medicine therapies to treat major diseases such as inflammation, diabetes and
cancer. We are planning to screen for small molecules that alter SEPS1 activity
with aim of partnering this program in the future."



                   ChemGenex Team Pinpoints Inflammation Gene

PAGE 2 OF 2
ABOUT CHEMGENEX PHARMACEUTICALS LIMITED     (WWW.CHEMGENEX.COM)

ChemGenex Pharmaceuticals is a gene-based pharmaceutical company dedicated to
improving the lives of patients by developing therapeutics in the areas of
oncology, diabetes, obesity, and depression. ChemGenex currently has two
compounds in Phase 2 clinical trials, Ceflatonin(R) for leukemia and Quinamed(R)
for solid tumors, and has a significant portfolio of anti-cancer, diabetes,
obesity and depression programs. The company's diabetes and obesity program is
partnered with Merck KGaA and the depression program is partnered with Vernalis
plc. ChemGenex currently trades on the Australian Stock Exchange under the
symbol "CXS" and the NASDAQ exchange under the symbol "CXSP".


Contacts

Dr. Greg Collier (CEO and Managing Director)    Australia        +61 3 5227 2752
                                                USA              +1 650 474 9800
                                                                         ext 103

Dr. Dennis Brown (President and Director)       USA              +1 650 474 9800
                                                                         ext 108
                                                Australia        +61 3 5227 2703






Safe Harbor Statement

Certain statements made herein that use the words "estimate," `project,"
"intend," "expect," "believe," and similar expressions are intended to identify
forward-looking statements within the meaning of the US Private Securities
Litigation Reform Act of 1995. These forward-looking statements involve known
and unknown risks and uncertainties which could cause the actual results,
performance or achievements of the company to be materially different from those
which may be expressed or implied by such statements, including, among others,
risks or uncertainties associated with the development of the company's
technology, the ability to successfully market products in the clinical
pipeline, the ability to advance promising therapeutics through clinical trials,
the ability to establish our fully integrated technologies, the ability to enter
into additional collaborations and strategic alliances and expand current
collaborations and obtain milestone payments, the suitability of internally
discovered genes for drug development , the ability of the company to meet its
financial requirements, the ability of the company to protect its proprietary
technology, potential limitations on the company's technology, the market for
the company's products, government regulation in Australia and the United
States, changes in tax and other laws, changes in competition and the loss of
key personnel. These statements are based on our management's current
expectations and are subject to a number of uncertainties that could change the
results described in the forward-looking statements. Investors should be aware
that there are no assurances that results will not differ from those projected.

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