Aquinox Pharmaceuticals Receives Regulatory Clearance to Initiate First Clinical Study of AQX-1125, A Novel Oral Anti-Inflammatory Compound

VANCOUVER, BRITISH COLUMBIA--(Marketwire - January 05, 2011) - Aquinox Pharmaceuticals Inc., a private, venture-backed, biopharmaceutical company developing novel and targeted small molecule therapeutics for the treatment of inflammatory disease, announced today that it has initiated a Phase I clinical trial of its lead compound, AQX-1125.

The Phase I trial for AQX-1125 is a three-part, double-blinded, placebo-controlled, single ascending dose, multiple ascending dose and food effects study in healthy volunteers. The primary objectives of this Phase I are to evaluate the safety, tolerability and pharmacokinetics of AQX-1125 administered orally once-daily. A secondary objective includes investigating the pharmacodynamics of AQX-1125 through the utilization of biomarkers.

"The initiation of this study is an important milestone for the company," said David J. Main, Chairman, President and Chief Executive Officer of Aquinox Pharmaceuticals. "AQX-1125 has demonstrated promising efficacy in preclinical models of inflammatory disease and has desirable pharmaceutical properties making it a strong development candidate."

"The Phase I study will enroll 52 normal health volunteers at a single center in Europe," said David Chernoff, M.D., Chief Medical Officer of Aquinox. "We believe this study will provide us with the data necessary to progress our clinical programs forward into multiple proof-of-concept studies in different indications."

About Aquinox Pharmaceuticals

Aquinox Pharmaceuticals Inc. is the world leader in the discovery and development of novel, first-in-class, small molecule therapeutics targeting SH2-containing inositol-5'-phosphatase ("SHIP1") for the treatment of inflammatory disease and cancer. The Company's lead clinical candidate, AQX-1125, is a highly active and selective small molecule allosteric activator of SHIP1 suitable for once-daily oral dosing. Aquinox anticipates completing its Phase I clinical study in the third quarter of 2011 and initiating Phase II clinical studies in 2012. The Company has a broad intellectual property portfolio and deep pipeline of preclinical drug candidates. For more information, please visit www.aqxpharma.com.