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Letter from Alliqua CEO, Dave Johnston, to Shareholders
Date:3/7/2013

arketplace. In addition, we added James Sapirstein to the Alliqua team, who now serves as the head of our Alliqua Biomedical division where he intends to bring our drug delivery vision to a reality. James has had executive experience at both large and small companies, including Bristol Myers Squibb, Tobira and Gilead, which should provide us with valuable insights as we seek to leverage our proprietary hydrogel in the pharmaceutical and biotechnology sectors.

In 2012 Alliqua also worked diligently to advance our products through scientific studies and opening new marketing channels. A post operative study of SilverSeal® in patients who had foot and ankle surgery was conducted in 2012.

These interim results, which were presented at a major medical meeting, were very encouraging, demonstrating reduction in scarring and incidence of infection compared to traditional dressings.  Importantly, this mirrored many of the anecdotal comments that our current customers have been providing us.

We pursued and achieved formulary status for both our SilverSeal® and HyDress® products with the U.S. Department of Veterans Affairs, which serves over 5 million patients. This contract is expected to open up a new channel to market our products, and provide an important wound-healing solution to inactive military personnel.

We also made the decision to consolidate our offices in Langhorne, PA, the current site of our manufacturing facility. I am particularly excited about our relocation, as it will enable our entire team for the first time to work together under one roof, allowing us to build a high-performance winning culture. In addition, it allows us to re-allocate certain G&A expenses to revenue generating activities.

We accomplished a lot in 2012 in this first phase of change for our company.  It can best be described as a year of building – building the re
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SOURCE Alliqua, Inc.
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