CeNeRx BioPharma Completes $9 Million Financing

-New Funds to Support Advancement of Multiple Novel Programs for CNS
Disorders-

RESEARCH TRIANGLE PARK, N.C., June 16 /PRNewswire/ -- CeNeRx BioPharma, Inc.,
a clinical stage company developing and commercializing innovative treatments
for diseases of the central nervous system (CNS), today announced completion
of a $9 million financing. The financing includes a $5 million credit
facility from MidCap Financial and an additional $4 million invested by
current shareholders Aisling Capital, L Capital Partners and Pappas Ventures.
CeNeRx plans to use the proceeds to advance its pipeline of promising clinical
and preclinical stage compounds for mood disorders, neurodegenerative
conditions, and pain and spasticity.

"In addition to supporting our Phase II compound TriRima(TM) for the treatment
of major depressive disorder, these funds will help advance our exciting new
product candidate for neurodegenerative disorders, CXB909, into clinical
trials later this year, and will also support progression of our earlier-stage
portfolio of cannabinoids," said Barry Brand, Chief Executive Officer of
CeNeRx. "We are pleased at the confidence from our current investors and new
partners at MidCap Financial in our promising and growing pipeline of
innovative CNS compounds."

CeNeRx is in the process of completing the ongoing Phase II trial of its lead
product candidate TriRima(TM) (formerly known as Tyrima) for the treatment of
major depressive disorder. TriRima is a selective and reversible member of a
novel class of drugs known as RIMAs, or reversible inhibitors of monoamine
oxidase A (MAO-A). The triple action mechanism of TriRima elevates the levels
of three key neurotransmitters that positively affect mood and anxiety,
compared to the one or two neurotransmitters addressed by most current
antidepressant drugs. This triple action mechanism may benefit patients not
responding to traditional single or dual action products, while the
selectivity and reversibility of TriRima are expected to reduce or eliminate
the risk of food-associated cardiovascular side effects of conventional
inhibitors of MAO-A.

Separately, CeNeRx announced today that it has acquired the rights to develop
and market CXB909, a novel agent for the prevention and treatment of
neuropathies and neurodegenerative disorders. CXB909 is a small molecule,
orally active agent that enhances the effects of nerve growth factor. CeNeRx
intends to initiate a Phase l trial of CXB909 for the treatment of
chemotherapy-induced peripheral neuropathy later this year.

About CeNeRx BioPharma

CeNeRx is a privately held clinical stage biopharmaceutical company developing
and commercializing innovative treatments for diseases of the central nervous
system. CeNeRx's most advanced compound, a reversible inhibitor of monoamine
oxidase, or RIMA, is in Phase II development for the treatment of major
depressive disorder. RIMAs may have efficacy advantages over current agents
for depression and are expected to have a good safety profile. The company's
CNS pipeline also includes CXB909, a small molecule, orally active agent for
the prevention and treatment of neuropathies and neurodegenerative disorders;
a series of novel compounds for anxiety and depression; and a series of
selective cannabinoid compounds that have recently completed successful
preclinical proof-of-concept studies for the treatment of pain, glaucoma and
spasticity. More information about CeNeRx BioPharma can be found at
www.cenerx.com.

About Aisling Capital

Aisling Capital is a dedicated life sciences private equity firm with over
US$1.6 billion under management. Headquartered in New York, Aisling Capital
invests in both private and public companies utilizing a wide variety of
investment structures. The Aisling Capital team is led by investment
professionals with clinical, operational and financial experience, which
allows the firm to identify, execute and realize investments across the life
sciences industry. For more information, visit www.aislingcapital.com.

About L Capital Partners

L Capital Partners invests in development and later-stage companies in the
healthcare, technology and energy & environment sectors. To help their
portfolio companies realize the promise of transformational change, L Capital
Partners is a committed multi-round investor that supports each company with a
team of partners, principals and associates who have deep industry and
financial expertise. In the healthcare sector, the firm targets companies in
the areas of biopharmaceuticals and medical devices. Established in 2004, L
Capital Partners
has offices in New York and Tel Aviv. For more information, visit
www.lcapitalpartners.com.

Pappas Ventures

A. M. Pappas & Associates is a Research Triangle Park, North Carolina-based
venture capital firm that invests nationally in the life science industry.
Founded in 1994, Pappas has over $350 million under management invested in
more than 43 portfolio companies throughout the U.S. The firm's primary focus
is investing in the life sciences - biotechnology, specialty pharmaceuticals,
drug delivery, medical devices and related ventures. For more information,
visit www.ampappas.com.

About MidCap Financial

MidCap Financial is a commercial finance company focused on middle market
lending in healthcare and other specialty vertical markets. MidCap specializes
in middle market loans in the $10 million to $200 million range. Its principal
officers are all veterans of the health care finance industry, having worked
together at three healthcare finance companies previously. The company is
headquartered in Bethesda, MD, with offices in Chicago and Los Angeles.
Additional information about MidCap Financial can be found at
www.midcapfinancial.com.
Contact:
GendeLLindheim BioCom Partners
Barbara Lindheim
212 918 4650

SOURCE CeNeRx BioPharma, Inc.

Barbara Lindheim, GendeLLindheim BioCom Partners, +1-212-918-4650