NeoPharm Announces NeoPhectin Collaboration Agreement for Drug Development

NeoPharm, Inc. (Nasdaq:NEOL) today announced that it has signed a Collaboration Agreement involving the Company’s Cationic Cardiolipin-based NeoPhectin(TM) technology. According to terms of the agreement, NeoPharm will provide its collaboration partner, a privately held biotechnology company, customized NeoPhectin formulations for their compounds. Upon fully performing under the agreement, NeoPharm would be entitled to receive cash payments totaling $500,000 over the next six-months. NeoPharm’s collaboration partner will be responsible for all future development costs of the customized formulations. In addition, the Collaboration Agreement allows for NeoPharm to negotiate a license agreement for any of the customized formulations that may be developed commercially.

“We are pleased to sign this agreement,” said Greg Young, NeoPharm’s President and Chief Executive Officer. “We believe that NeoPhectin(TM) technology has many applications, both in research and in the clinic.”

NeoPharm has developed novel cationic cardiolipin analogues in order to enhance the capability of delivering nucleic acids including antisense and siRNA. These analogues form the backbone of the technology for efficient delivery. Customized NeoPhectin(TM) formulation is based on the entrapment of nucleic acid molecules leading to the ready-to-use formulation, providing a comprehensive solution for a wide variety of drug development challenges.

“Systemic delivery of nucleic acid molecules using non-viral methodologies is still a challenge. NeoPhectin(TM) technology has the potential to overcome the hurdles associated with delivery of antisense, plasmid DNA and siRNA. NeoPharm is using its NeoPhectin(TM) technology platform to deliver c-raf antisense molecule, LErafAON, or Liposome Entrapped c-raf antisense oligonucleotide, which is currently in Phase I clinical trials,” said Dr. Imran Ahmad, Chief Scientific Officer and Executive Vice President.

About NeoPhectin(TM)

NeoPhectin(TM) and NeoPhectin-AT(TM), two novel transfection reagents, are an outgrowth of NeoPharm’s lipid development program and uses NeoPharm’s proprietary cationic (positively charged) cardiolipin technology. NeoPhectin(TM) and NeoPhectin-AT(TM) have small, stable, homogeneous, ready-to-use liposomes that have shown reduced toxicity to cells and animals and are able to deliver siRNA, plasmid DNA and antisense both in vitro and in vivo, respectively. The NeoPhectin(TM) family of products was developed by NeoPharm at the Company’s Waukegan, Illinois Research and Development facility. Additional information can be obtained by visiting www.neophectin.com .

About NeoPharm, Inc.

NeoPharm, Inc., based in Lake Forest, Illinois, is a publicly traded biopharmaceutical company dedicated to the research, development and commercialization of new and innovative cancer drugs for therapeutic applications. The Company has a portfolio of cancer compounds in various stages of development. Additional information can be obtained by visiting NeoPharm’s Website at www.neophrm.com .