Bio-Quant becomes wholly-owned subsidiary of NexMed

NexMed, Inc. (Nasdaq: NEXM), a developer of products based on the NexACT^® technology, today announced the closing of its acquisition of Bio-Quant, Inc., a privately-held leading research organization for in vitro and in vivo contract drug discovery and pre-clinical development services, headquartered in San Diego, CA. Upon closing, Bio-Quant became a wholly-owned subsidiary of NexMed. Bassam Damaj, Ph.D., co-founder and former Chief Executive Officer and Chief Scientific Officer of Bio-Quant, was named President and Chief Executive Officer of NexMed, replacing Vivian Liu, who has assumed the role of Executive Vice President and was appointed Chairman of the Board of Directors. The Board of Directors is now composed of three Bio-Quant nominees and four NexMed nominees.

Commenting on today’s news, Dr. Damaj stated, “The synergistic combination of NexMed’s novel NexACT^® technology and existing clinical assets with Bio-Quant’s revenue generating business, will enable us to offer both our existing and potential pharmaceutical customers a broader array of products and services. I look forward to working closely with Vivian on our integration efforts, as well as on business development and licensing activities for NexMed’s product pipeline.”

Mark Westgate, Chief Financial Officer of NexMed, added, “The acquisition of Bio-Quant was an integral part of our compliance plan which we presented during our November 12, 2009 meeting with the NASDAQ Listing Qualification Panel. We remain hopeful that the closing of this transaction will give the NASDAQ Panel sufficient confidence in NexMed’s ability to regain and maintain compliance with all applicable listing requirements going forward.”