Rexahn Pharmaceuticals and Teva Pharmaceutical Industries Agree to Close on a License Agreement

Rexahn Pharmaceuticals, Inc., a clinical stage pharmaceutical company commercializing potential best in class oncology and central nervous system (CNS) therapeutics, today announced that it has reached an agreement to close on its previously announced licensing and stock purchase agreements with Teva Pharmaceutical Industries Limited, a top 20 pharmaceutical company, for the development of its novel anti-cancer compound, RX-3117. RX-3117 is a small molecule, new chemical entity (NCE), nucleoside compound that has an anti-metabolite mechanism of action, and has therapeutic potential in a broad range of cancers including colon, lung and pancreatic cancer. Closing of the transaction is expected to occur on September 21, 2009.

The companies reached an agreement with respect to the commercialization and development of RX-3117, under which on September 16, 2009 Teva agreed to purchase shares of Rexahn's common stock for $3.5 million. Rexahn will be eligible to receive additional development, regulatory and sales milestone payments. In addition, Rexahn will receive royalties on net sales worldwide. Under the terms of the deal, Teva may also make an additional equity investment in Rexahn within the next 12 months.