EffRx Signs Expansion of Licensing Deal with Nycomed for Its Novel Effervescent Osteoporosis Drug EX101

JUPITER, Fla.--(Business Wire)--
The Florida based drug delivery company EffRx, Inc. and the pharmaceutical
company Nycomed today announced that they have signed an expansion of
territories in their licensing deal for EffRx`s proprietary drug EX101
(effervescent alendronate), for the treatment of osteoporosis. A previous
licensing agreement covering Europe, Russia, the Middle East, North Africa,
Latin America and Canada was signed in January 2009.

Under the terms of the agreement, EffRx will receive from Nycomed additional
upfront and milestone payments of up to US$15m. This brings the total for all
territories to US$74m in upfront and milestone payments. EffRx will in addition
be granted double-digit royalties on future sales of EX101. Nycomed will also
sponsor the necessary additional studies required for marketing approval in its
territories. The licensing deal now covers the whole world except USA, Japan,
South African countries and a few other minor markets.

EX101 is currently in late stage clinical trials. Earlier trials indicate that
EX101 has the potential to be "Best in Class" oral bisphosphonate according to
EffRx scientists. Final approval and launch in USA is expected in 2010 while
submission for European approval is expected by end of 2009.

The growing global osteoporosis market is presently valued at about $7bn per
annum.

"We are really pleased with this extended collaboration with Nycomed. EffRx has
received strong global demand for EX101, especially in several emerging markets,
and we believe that Nycomed is the right company to maximize the penetration in
these markets. Our focus will now be to support Nycomed in any area we can be of
assistance and at the same time find the right partner for EX101 in USA and
Japan," commented Christer Rosén, Chairman and CEO of EffRx.

Notes to editors

About EffRx

EffRx, Inc. is a drug delivery company that utilizes value-added drug delivery
technologies to improve the performance of established pharmaceuticals. The
company applies its technologies to well-established, proven compounds to
develop reformulated products with reduced gastrointestinal side effects, better
absorption, and faster onset of action. EffRx develops novel prescription and
OTC pharmaceuticals at relatively low development cost and risk, shorter time to
market and with premium pricing compared with generics.

EffRx exploits a number of drug delivery technologies, notably soluble
effervescent formulations, granules for immediate dispersion, and fast-melt
lozenges with an effervescent layer. These technologies are applied to
established high volume drugs with large market potential in various therapeutic
areas.

EffRx currently has an extensive pipeline of product candidates, with three
products in active development. The most advanced product is EX101 (effervescent
alendronate), for the treatment of osteoporosis. Also in development is a
bi-layer tablet for the treatment of xerostomia.

EffRx is headquartered in Jupiter, Florida, USA.

For additional information, please visit the website www.effrx.com.

About Nycomed

Nycomed is a privately owned global pharmaceutical company with a differentiated
portfolio focused on branded medicines in gastroenterology, respiratory and
inflammatory diseases, pain, osteoporosis and tissue management. An extensive
range of OTC products completes the portfolio.

Its R&D is built to be open for partnerships as in-licensing is a cornerstone of
the company`s growth strategy.

Nycomed employs 12,000 associates worldwide, and its products are available in
more than 100 countries. It has strong platforms in Europe and in fast-growing
markets such as Russia/CIS, and Latin America. While the US and Japan are
commercialised through best-in-class partners, Nycomed will further strengthen
its position in key Asian markets.

Headquartered in Zurich, Switzerland, the company generated in 2008 total sales
of € 3,4 billion and an adjusted EBITDA of € 1,2 billion.

For more information visit www.nycomed.com

About EX101

Bisphosphonate tablets (Fosamax, Actonel, Boniva etc.) has for years been
associated with upper gastrointestinal problems. This in turn has resulted in
poor compliance and increased cost for society.

EX101 addresses these issues by:

* There is no tablet to swallow, only a good tasting (strawberry) solution
* Soluble Form means there is no tablet to lodge in the esophagus; EX101 is
fully rinsed into the stomach
* EX101 is administered in half the volume (120 ml) compared with label
instructions for bisphosphonate tablets
* Gastric Imaging and pH Telemetry Study demonstrates

* Reduced stomach acid after dosing EX101
* Alendronate never present under acidic conditions
* Well documented "heartburn" issues can thereby be alleviated

* Imaging & pH Telemetry Study provide supportive data to eliminate or reduce
vertical wait time
* EX101 shows high absorption consistency compared with Fosamax tablets

About Osteoporosis

Regarded as the "Silent epidemic".

Osteoporosis, which literally means "porous bone", is a disease in which the
density and quality of bone are reduced. As the bones become more porous and
fragile, the risk of fracture is greatly increased. The loss of bone occurs
"silently" and progressively. Often there are no symptoms until the first
fracture occurs.

Facts and Figures:

* Osteoporosis affects an estimated 75 million people in Europe, USA and Japan
* 1 in 3 women over 50 will experience osteoporotic fractures, as will 1 in 5
men
* In women over 45 years of age, osteoporosis accounts for more days spent in
hospital than many other diseases, including diabetes, myocardial infarction and
breast cancer
* A 50 year old woman has a 2.8% risk of death related to hip fracture during
her remaining lifetime, equivalent to her risk of death from breast cancer and 4
times higher than that from endometrial cancer
* It is estimated that in Europe, 179,000 men and 611,000 women will suffer a
hip fracture each year and that the cost of all osteoporotic fractures in Europe
is provisionally €25 billion
* From 1990 to projections in 2050 the number of hip fractures for women and men
aged 50-64 in Latin America will increase by 400%. For age groups older than 65
the increase will be a staggering 700%
* There is a range of drug treatment available for postmenopausal osteoporosis.
Different studies have consistently shown that, depending on the drug and the
patient population, treatment reduces the risk of vertebral fracture by between
30-65% and of nonvertebral fractures by between 16-70%
* Poor compliance by patients with drug therapies for osteoporosis over a year
leaves them at risk for fractures and higher healthcare costs

EffRx, Inc., Jupiter
Christer Rosén, CEO, +1-561-308-7780
crosen@effrx.com
or
Jaap Uittenbogaard, CFO, +1-561-622-0321
juittenbogaard@effrx.com

Copyright Business Wire 2009