Dalton Pharma Services and X-GEN Pharmaceuticals, Inc. Enter into a Manufacturing Services Agreement

TORONTO, June 14 /PRNewswire/ - Dalton Pharma Services, a privately owned Canadian pharmaceutical services provider to leading pharmaceutical companies, today announced the company has entered into a long term Manufacturing Services Agreement with X-GEN Pharmaceuticals, Inc., a specialty pharma company based in Big Flats, New York, focused on providing quality therapeutic options in both specialized disease areas and broad range treatment choices.

Dalton Pharma Services has been contracted to fill/finish under cGMP, sterile commercial products for X-GEN. The two companies, aligned in core values and business practices are tactically poised for growth in the area of sterile injectables.

"Our Establishment License from Health Canada, combined with our expert capabilities in analytical services and sterile manufacturing capacity, solidified the manufacturing agreement," said Peter Pekos, President and CEO. "This agreement validates Dalton's customer oriented approach to bringing our clients' products to the market quickly. We are extremely pleased to be working with X-GEN Pharmaceuticals, and look forward to providing further commercial manufacturing services for X-GEN, a strategic partner for Dalton," continued Pekos.

Susan Badia, President and Chief Executive Officer of X-GEN remarked, "The partnership with Dalton is an example of X-GEN's commitment to expanding our offering of pharmaceutical products which benefit the healthcare community as reliable, cost-effective treatment choices. We are excited about the opportunity to partner with a company whose client focus and commitment to quality match our own. Sharing these values with partners like Dalton is vital to our ability to provide products which fulfill the therapeutic needs of physicians and their patients."

About Dalton Pharma Services

Dalton Chemical Laboratories Inc. o/a Dalton Pharma Services is a Health Canada approved, contract pharmaceutical manufacturer that supplies chemistry and analytical services to the biotechnology and pharmaceutical industries in the areas of medicinal chemistry, fine chemical manufacture, custom peptides and antisense oligo production. Dalton provides cGMP manufacturing and sterile filling services to its customers at any stage of the regulatory process (Phase I, II, III or commercial). In its state of the art cGMP facilities, Dalton can produce active pharmaceutical ingredients (API), at the gram or kilogram scale. Dalton can carry out sterile fills to produce batches of finished drug product in vials or syringes, either aseptically filled or terminally sterilized, under fully validated conditions. In addition to drug testing, Dalton's analytical chemistry laboratory offers method development, validation, ICH stability programs and HPLC-MS services to its clients.

About X-Gen Pharmaceuticals Inc.

X-GEN Pharmaceuticals, Inc. is a generic drug company specializing in the manufacturing and distribution of mature anti-infective pharmaceutical products. X-GEN's strategic focus is on the continuous development of quality generic pharmaceuticals which enhance patient care as reliable and affordable treatment options. X-GEN's product offering includes a broad range of dosage forms, including injectables, topical solutions, oral solutions, oral solids, powders for prescription compounding and inhalants.

CONTACT: Peter Pekos, Dalton Pharma Services, Tel: (416) 661-2102, Fax:(416) 661-2108, ppekos@dalton.com