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                                                                    EXHIBIT 99.1



         Contact:

         Axys Pharmaceuticals, Inc.                     Burns McClellan, Inc.
         John Walker                                    Justin Jackson (media)
         Chairman and CEO                               John Nugent (investors)
         or                                                  (212) 213-0006
         David Gennarelli
         Manager Investor Relations
         (650) 829-1000


FOR IMMEDIATE RELEASE


               AXYS PHARMACEUTICALS ADOPTS STOCKHOLDER RIGHTS PLAN

         SOUTH SAN FRANCISCO, Calif. -- October 8, 1998 -- Axys Pharmaceuticals,
Inc. (Nasdaq: AXPH) announced today that its Board of Directors approved the
adoption of a Share Purchase Rights Plan under which all stockholders of record
as of October 28, 1998 will receive rights to purchase one one-hundredth of a
share of a new series of Preferred Stock.

         The Rights Plan is designed to enable all Axys Pharmaceuticals
stockholders to realize the full value of their investment and to provide for
fair and equal treatment for all stockholders in the event that an unsolicited
attempt is made to acquire Axys Pharmaceuticals. The adoption of the Rights Plan
is intended as a means to guard against abusive takeover tactics and is not in
response to any particular proposal.

         The rights will be distributed as a non-taxable dividend and will
expire in ten years from the Record Date. The rights will be exercisable only if
a person or group acquires 15 percent or more of Axys Pharmaceuticals' Common
Stock or announces a tender offer for 15 percent or more of the Common Stock. If
a person acquires 15 percent or more of Axys Pharmaceuticals' Common Stock, all
rightsholders except that person will be entitled to acquire Axys
Pharmaceuticals' Common Stock at a discount. The effect will be to discourage
acquisitions of more than 15 percent of Axys Pharmaceuticals' Common Stock
without negotiations with the Board.



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Axys Adopts Rights Plan
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         The rights will trade with Axys Pharmaceuticals' Common Stock, unless
and until they are separated upon the occurrence of certain future events. The
rights distribution is not taxable to the stockholders. Axys Pharmaceuticals'
Board of Directors may terminate the Rights Plan at any time or redeem the
rights prior to the time a person acquires more than 15 percent of Axys
Pharmaceuticals' Common Stock. Additional details regarding the Rights Plan will
be outlined in a summary to be mailed to all stockholders following the Record
Date.

         Axys Pharmaceuticals is a leader in the integration of life science
technologies with a focus on transforming gene discoveries into drugs. The
company has research collaborations with world-class pharmaceutical companies,
covering a broad range of therapeutic areas, including respiratory,
cardiovascular, and infectious disease, as well as oncology and central nervous
system disorders.

         Except for the historical information contained herein, this press
release contains forward-looking statements that involve risks and uncertainties
which could cause Axys' actual results to differ materially from those discussed
here, including unexpected difficulties and delays in the development of new
technologies the risk that Axys' collaborations will not be successful, the risk
that Axys will not be successful in entering into new collaborations, the risk
that clinical trials will not proceed as anticipated or may not be successful,
the risk of Axys' early stage of development, Axys' reliance on the efforts of
its collaborative partners, competition, and general economic conditions that
may affect Axys' actual results and developments. Additional factors that could
cause or contribute to such differences include, but are not limited to, those
discussed in the sections entitled "Business" and "Additional Risk Factors" in
the company's SEC Reports, including the company's report on Form 10-K for the
fiscal year ended December 31, 1997.

                                      # # #

For more information on Axys Pharmaceuticals, Inc., please visit the company's
website at http://www.axyspharm.com.