Aegis Therapeutics and Phylogica Collaborate to Deliver Phylomer Peptide Drugs With Patient-Friendly Intranasal Sprays

SAN DIEGO, CA--(Marketwire - April 14, 2009) - Aegis Therapeutics LLC ("Aegis") and Australian Drug Discovery company Phylogica Limited (ASX: PYC) ("Phylogica") today announced a collaboration to use Aegis' proprietary Intravail® transmucosal delivery formulations to deliver Phylogica's Phylomer® peptide drugs.

Phylogica's CSO and VP of Corporate Development, Dr. Paul Watt, said: "I am delighted at the agreement since the synergy between Phylomer peptides and the Intravail® delivery platform was so compelling. Phylomer peptides are of an ideal size to deliver as a nasal spray using the Intravail® formulation, since they are much smaller than proteins such as antibodies, which are delivered far less efficiently by means other than injection." Dr. Watt said: "Peptides of the size of many of our Phylomers have been delivered with bio-availabilities of 80%. This is very impressive and suggests that intranasal delivery of Phylomers may be highly feasible."

Dr. Ed Maggio, the CEO of Aegis, said: "Intranasal delivery is the most validated non-injectable means of delivering peptides since several peptides including calcitonin, desmopressin, and nafarelin have been approved and marketed for years. Intranasal formulations have been shown to increase market share by more than 30 fold over the corresponding injectable formulations because patients overwhelmingly prefer to avoid injections if possible in favor of other delivery approaches." Dr. Maggio said: "Peptide therapeutics are among the most potent and safe drugs ever developed. Phylomer technology, for the first time, can harness the nearly unlimited structural diversity found in thousands of naturally occurring protein-folds to greatly expand the prospects of novel, safe, and effective peptide therapeutics in virtually any disease category."

The companies have agreed to offer their services together to parties such as Pharmaceutical companies, who may be seeking a patient-friendly intranasal Phylomer peptide developed against their target of interest.

About Phylogica Ltd.

Phylogica Ltd. (ASX: PYC) (www.phylogica.com) is a biotechnology company involved in drug discovery, using its proprietary Phylomer® peptide libraries. Phylomer® peptides are stable fragments of naturally occurring proteins which bind tightly and specifically to disease targets. Phylomer® peptides have drug-like properties, including specificity, potency, stability and flexible production, allowing for chemical or recombinant means of manufacturing. In addition, these unique peptides are able to block both extracellular and intracellular disease targets. Phylogica's proprietary Phylomer® libraries are collections of hundreds of millions of Phylomer® peptides that represent a rich source of drug leads for a broad range of disease targets.

About Aegis Therapeutics

Aegis Therapeutics LLC is a drug delivery technology company commercializing its patented drug delivery and drug formulation technologies through product-specific licenses. Our patented Intravail® drug delivery technology enables the non-invasive delivery of a broad range of protein, peptide and non-peptide macromolecular therapeutics via the intranasal administration route with exceptionally high and unmatched bioavailability that can currently only be achieved by injection. Intravail® has also been successfully applied to buccal, oral, and rectal administration of both small molecule and peptidic drugs. Our patented ProTek® technology allows creation of proprietary, easily manufacturable, and stable aqueous or lyophilized dosage forms that maintain the integrity and physiological activity of many protein and peptide therapeutics. ProTek® technology is applicable to injectable, intranasal, and other dosage forms of peptide or protein therapeutics.

For more information about Aegis, please visit the Aegis website at: www.aegisthera.com.

Contact Information: Contact: Ralph Barry Chief Business Officer Aegis Therapeutics LLC 1-858-618-1400 Ext. 102 Email: