1
                                                                   Exhibit 20.1

Contact:
Axys Pharmaceuticals, Inc.
John Walker
Chairman and CEO
(650) 829-1000


         FOR IMMEDIATE RELEASE

AXYS PHARMACEUTICALS, INC. ANNOUNCES
PUBLIC OFFERING OF CONVERTIBLE NOTES AND WARRANTS

                  Axys Pharmaceuticals, Inc. (Nasdaq: AXPH) today announced that
it is filing a supplement to its shelf registration statement with the
Securities and Exchange Commission for a public offering of up to $20,000,000
aggregate principal amount of a new series of fixed rate convertible notes and
warrants to purchase shares of its common stock. The public offering represents
a new financing by Axys. The offering will be made only by means of a
prospectus.

                  The offering is being made on a best efforts basis through
Diaz & Altschul Capital, LLC, as placement agent.

                  Axys  Pharmaceuticals, Inc. is an integrated small molecule
drug discovery and development company.

                  This press release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of the
convertible notes or warrants in any State in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any such State.

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