RXi Pharmaceuticals acquires Apthera

RXi Pharmaceuticals Corporation (Nasdaq: RXII), a biotechnology company focused on discovering, developing and commercializing innovative therapies addressing major unmet medical needs using RNA-targeted and immunotherapy technologies, today announced the completion of its previously announced acquisition of Apthera, Inc.

The acquisition provides RXi with a late stage product candidate, NeuVax™, a peptide-based immunotherapy for low-to-intermediate HER2+ breast cancer, patients who are not eligible for Herceptin® RXi has targeted NeuVax to enter Phase III clinical trials in the first half of 2012. The Company's first self-delivering RNAi product, RXI-109 for anti-scarring in planned surgeries, remains on track for an investigational new drug (IND) application filing this year.

Under the terms of the acquisition agreement, Apthera stockholders will initially receive approximately 4.8 million shares of RXi's common stock. Apthera's stockholders will also be entitled to contingent payments based on the achievement of certain development and commercial milestones relating to Apthera's NeuVax™ product candidate.

"NeuVax and RXI-109 significantly advance RXi into a product development company with novel therapeutics addressing large unmet medical needs," said Mark J. Ahn, PhD, President and Chief Executive Officer of RXi Pharmaceuticals. "We believe we have the people, pipeline and resources to realize the promise of our innovative products for patients and shareholders."