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Surfaxin (Lucinactant) Long-Term Survival Advantage vs. Comparators,Published in Pediatrics

er in Europe and current market growth driver in United States.

* Although treatment with Surfaxin improved survival in preterm children, no differences in neurologic outcomes through one-year of life were observed between treatment groups, however, Surfaxin demonstrated a statistically significant (p less than or equal to 0.05) reduction in two important assessments of neurologic outcomes (reflex abnormality and gross tone) versus Survanta.

Robert J. Capetola, President and CEO of Discovery Labs, commented, "Publication of these data in Pediatrics represents an important validation of Surfaxin, the cornerstone of Discovery's broad SRT pipeline. The neonatal medical community has repeatedly indicated a strong interest in long-term outcomes assessment. No such assessment from the registration trials supporting use of currently prescribed animal-derived products has, to our knowledge, ever been conducted. Discovery is committed to provide this critically important information to the neonatal community. The article by Dr. Moya et al. supports a defined survival advantage for Surfaxin compared with current standard of care. We believe these long-term data will support significant differentiation for Surfaxin."

About Surfaxin

Surfaxin is a precision-engineered version of natural human lung surfactant and contains Discovery Labs' KL-4 peptide. Surfaxin, administered as a liquid-instillate, represents a potential alternative to the commercially available animal-derived surfactants. Data from Discovery Labs pivotal, multinational SELECT study demonstrate that Surfaxin is significantly more effective in the prevention of RDS and results in improved survival (continuing through at least one year of life) and other outcomes versus comparator surfactants. The SELECT and STAR (a supportive Phase 3 study) trials, as well as the pooled Phase 3 analysis, have been presented at several international medical meetings and the results from the two studies we
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