Verus Pharmaceuticals Announces Agreement with Paladin Labs for Commercialization of Twinject in Canada

Verus Pharmaceuticals, Inc., a pediatric-oriented company dedicated to identifying, developing and delivering solutions to address the unmet medical needs of children and those who care for them, today announced it has entered into an exclusive agreement with Paladin Labs Inc. (TSX: PLB), a leading Canadian specialty pharmaceutical company, to commercialize Twinject™ in Canada. Twinject, a novel epinephrine auto-injector indicated for the emergency treatment of severe allergic reactions (anaphylaxis), was approved by Health Canada in 2003; two dosages are now approved for self-administration (0.3 mg and 0.15 mg).

“There are significant unmet medical needs for those individuals at risk for anaphylaxis and, unfortunately, no advancements in self-administered treatment options have been commercialized in Canada since the early 1980s,” said Robert W. Keith, President and Chief Operating Officer of Verus. “Twinject is the first and only product approved by Health Canada that contains two doses of epinephrine in a single device. This is an important feature of Twinject, as published studies have demonstrated that more than one dose of epinephrine may be required in many situations to properly address the allergic reaction, with the second dose often needed within 5-10 minutes after the first dose. As such, we are very excited to be working with an experienced and well established commercial partner to bring this novel product line to Canadian patients.”

“The agreement with Verus allows us the opportunity to establish a leadership position in an attractive, high growth market,” said Jonathan Ross Goodman, President and CEO of Paladin Labs. “We look forward to working with Verus to coordinate the North American launch of Twinject and to commercialize additional products that address other unmet medical needs for those at risk for anaphylaxis.”

About Anaphylaxis
Anaphylaxis is a severe, life-threatening systemic allergic reaction triggered by exposure to one or more various antigens, including foods, insect stings, drugs, and latex products. Up to 43 million people in the U.S. alone are at risk for anaphylactic episodes, and underlying incidence rates are expected to continue increasing in future years. Up to eight percent of children have food allergies, with allergies to peanuts and tree nuts among children having doubled in the past five years. The timing, location, pattern (including onset, severity and length) and specific treatment requirements for each future anaphylactic episode cannot be predicted in advance.

About Paladin Labs
Paladin Labs, headquartered in Montreal, Canada, is a leading specialty pharmaceutical company focused on developing, acquiring or in-licensing innovative pharmaceutical products for the Canadian market. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada’s leading specialty pharmaceutical companies. Paladin’s shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Paladin Web Site at www.paladinlabs.com.

About Verus
Verus Pharmaceuticals is dedicated to improving the lives of children and those who care for them. Verus is building a portfolio of products for the unmet medical needs of children through acquisitions and alliances, with an initial focus on the treatment of asthma, allergies, and related diseases and conditions. Verus is differentiated by its pediatric orientation and its strong financial position and experienced management team, which allows the company to capitalize on an extensive network to build its product portfolio and pursue complementary transactions. The company’s rigorous, disciplined approach to strategic decision-making and core competencies in development and commercialization is expected to provide significant value to its partners. More information about Verus is available on the company’s website at www.veruspharm.com.

Forward-Looking Statements
Verus Pharmaceuticals cautions you that statements included in this press release that are not a description of historical facts may be forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by Verus that any of its plans will be achieved. Actual results may differ materially from those set forth in this press release due to the risks and uncertainties inherent in Verus’ business including, without limitation, statements about: its ability to identify appropriate acquisition, licensing, or co-development and/or promotion candidates in the future or be able to take advantage of the opportunities it identifies; difficulties or delays in developing, obtaining regulatory approval, manufacturing and commercializing its products; unexpected performance or side effects of its products that could delay or prevent development or commercialization, or that could result in recalls or product liability claims; the scope and validity of patent protection for its products; competition from other pharmaceutical companies; and its ability to obtain additional financing to support its operations. All forward-looking statements are qualified in their entirety by this cautionary statement and Verus undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.