Rexahn Pharmaceuticals Provides Second Quarter 2009 Business Update

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ROCKVILLE, Md.--(BUSINESS WIRE)-- Rexahn Pharmaceuticals, Inc. (NYSE Amex: RNN), a clinical stage pharmaceutical company commercializing potential best in class oncology and CNS therapeutics, today provided an update on the company's business for the 2009 second quarter.

Key milestones achieved during the quarter include: 

    --  Formation of a development and commercialization partnership with a Top
        20 pharmaceutical firm to develop Rexahn's novel anti-cancer compound,
        RX-3117;
    --  Positive preliminary results for sexual dysfunction drug Zoraxel(TM);
    --  Completion of Phase IIa patient enrollment for anxiety and depression
        drug Serdaxin(TM);
    --  Finalization of licensing partnership with Korea Research Institute of
        Chemical Technology ("KRICT") to develop new anti-cancer drugs; and
    --  Completion of Registered Direct Offering of common stock and warrants to
        a single institutional investor, with the Company receiving gross
        proceeds of $3 million cash, and the investor also receiving warrants to
        buy additional shares of common stock for $7 million.

Commenting on the company's progress, Dr. Chang Ahn, Rexahn's Chairman and CEO, said, "I am very pleased with the achievements that we have made over the quarter, as our team executed our business plan. In many ways this was a break out quarter for Rexahn, as reflected by achievement of several milestones."

Rexahn has three highly differentiated cancer and CNS drug candidates in Phase II clinical trials, in addition to a robust pipeline of pre-clinical compounds. We have been very pleased by the interest that these preclinical compounds have been receiving, as they represent the future of our company, and reduce our risk exposure by providing ample diversity in our pipeline. The commercial potential of our pre-clinical compounds is reflected by the partnering agreement entered into with a Top 20 pharmaceutical company to develop Rexahn's novel anti-cancer compound, RX-3117.

"This development in concert with the licensing-in partnership entered into with KRICT to develop a synthetic process for Quinoxalines compounds is a major step forward for Rexahn, and will further enrich our growing pre-clinical drug pipeline devoted to new therapies that change treatment paradigms in cancer and CNS."

Dr. Ahn continued, "In addition to the progress made by our preclinical candidates, our drugs currently in clinical trials have also made steady progress. In particular, preliminary reports released from the Phase IIa clinical study for our sexual dysfunction drug candidate, Zoraxel, found that treated subjects demonstrated improved erectile function and significant improvement in the quality of life measures. Underscoring this development, an animal study conducted by Utrecht University in The Netherlands further demonstrated Zoraxel as a potential new-class of therapeutic for the effective treatment of sexual dysfunction. Both of these events represent significant milestones in the development of Zoraxel."

In other fronts, Rexahn's anxiety and depression drug, Serdaxin, completed patient enrollment during the quarter. Of note, the prestigious Journal of Pharmacology, Biochemistry and Behavior published results of an animal study revealing that Serdaxin is highly potent, has a unique profile, and has anti-anxiety activity unlike any of the commonly prescribed drugs used to treat anxiety disorders."

"I am very excited with the progress we have made and I look forward to continuing to communicate our progress as we get closer to bringing our compounds to the market," concluded Dr. Ahn.

During the quarter, the Company improved its financial position, completing a Registered Direct Offering of common stock and warrants. The Company plans to use the proceeds from the offering for research and development and general corporate purposes. As of June 30, 2009 cash, cash equivalents and marketable securities were $4.2 million compared to $3.4 million at December 31, 2008.

About Rexahn Pharmaceuticals, Inc.

Rexahn Pharmaceuticals is a clinical stage pharmaceutical company dedicated to commercializing first in class and market leading therapeutics for cancer, CNS disorders, sexual dysfunction and other unmet medical needs. Rexahn currently has three drug candidates in Phase II clinical trials - Archexin(TM), Serdaxin(TM), and Zoraxel(TM) - all potential best in class therapeutics, and a robust pipeline of preclinical compounds to treat multiple cancers and CNS disorders. Rexahn also has key R&D programs in cancer nano-medicines and multi-target aimed ligands drug discovery technologies. For more information, please visit www.rexahn.com.

Safe Harbor

This press release contains forward-looking statements. Rexahn's actual results may differ materially from anticipated results, and expectations expressed in these forward-looking statements, as a result of certain risks and uncertainties, including Rexahn's lack of profitability, and the need for additional capital to operate its business to develop its product candidates; the risk that Rexahn's development efforts relating to its product candidates may not be successful; the possibility of being unable to obtain regulatory approval of Rexahn's product candidates; the risk that the results of clinical trials may not be completed on time or support Rexahn's claims; demand for and market acceptance of Rexahn's drug candidates; Rexahn's reliance on third party researchers and manufacturers to develop its product candidates; Rexahn's ability to develop and obtain protection of its intellectual property; and other risk factors set forth from time to time in our filings with the Securities and Exchange Commission. Rexahn assumes no obligation to update these forward-looking statements. 


    Source: Rexahn Pharmaceuticals, Inc.

Released August 17, 2009