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Early Product Development Pipeline

PXS25 — targeting lung fibrosis

The Phase 1A trial of our most advanced new drug candidate, PXS25 began in early October 2009 to assess its safety and tolerability in healthy volunteers.

The trial in 64 subjects is underway to determine PXS25's suitability to progress to the second efficacy stage of testing.

Pulmonary fibrosis is a degenerative disease of the lungs,affecting more than 500,000 people in the major pharmaceutical markets. The average life expectancy on diagnosis is four years, with no approved therapies available outside Japan.

Results from the first trial are expected during the fourth quarter of 2009.

A patent for PXS25 has been granted in Europe and is at the allowance stage in the USA.

More information on our patents can be found at www.pharmaxis.com.au/patents.

PXS4159 — promising new candidate for asthma

In another research project, our drug discovery team has now designed a large library of small molecules that inhibit a critical protein that is implicated in the inflammatory response and organ damage associated with chronic immune mediated diseases such as asthma.

We are in the process of selecting a development candidate tobegin scale up manufacture and pre-clinical safety studies prior to evaluating the compound in human trials. In parallel, we continue basic research to explore its other potential clinical uses for this series.