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AlphaRx and Gaia BioPharma Provide GAI-122 Development Update
Date:6/16/2009

    GAI-122, an investigational injectable nano-emulsion formulated with
    AlphaRx's proprietary drug delivery technology, provides significant
    neuroprotection in animal behavioral models. Gaia BioPharma plans to
    initiate a clinical development program to further study GAI-122 for an
    acute and as yet, unmet neurological indication.

MARKHAM, ON, June 16 /PRNewswire-FirstCall/ - AlphaRx Inc. (OTCBB: ALRX) and Gaia BioPharma Limited, a privately held, early stage biopharmaceutical company focused on hospital-based injectable therapeutics, are pleased to provide a progress report on GAI-122.

GAI-122 offers significant and direct neuroprotection in both in vitro and in vivo ischemic conditions. Experimental evidence suggests that the neuroprotective action of GAI-122 is related to its' active inhibition of apoptosis or cell death. GAI-122 shows potential as a major treatment innovation in the management of ischemic neurological disorders such as stroke and traumatic brain injury.

The proposed initial indication for GAI-122 is an acute neurological disorder affecting millions of patients undergoing cardiac and hip replacement surgery. It is estimated that the market potential for this unmet indication exceeds US$2 billion a year.

GAI-122 is in the final stage of formulation optimization, which is expected to be completed by the end of summer 2009, proceeding to clinical trial materials manufacturing thereafter. GAI-122 is protected by 4 US patent applications.

In October 2008, AlphaRx licensed GAI-122 to Gaia BioPharma. Under the terms of the amended agreement, AlphaRx is eligible to receive milestone payments of up to $50 million for the successful development and commercialization of GAI-122, as well as royalties on worldwide sales. In addition, Gaia BioPharma has assumed all development costs.

About AlphaRx Inc.

AlphaRx is a specialty pharmaceutical compa
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SOURCE AlphaRx Inc.
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