Afexa Life Sciences Inc. Sets the Record Straight

EDMONTON, ALBERTA--(Marketwire - January 19, 2011) - Afexa Life Sciences Inc. (“Afexa”) (TSX: FXA) wishes to set the record straight. After a thorough review of our contractual arrangements and other dealings with Alberta Health Services (“AHS”) in relation to our multi-centre pediatric clinical trial involving COLD-FX®, we feel clarifying the public record is required, given the recent media interest in this trial.

In June of 2008 Afexa entered into a contract with Capital Health (“CH”) with respect to our pediatric clinical trial and in May of 2009 the rights and obligations of CH under such agreement were assumed by AHS. Under the agreement, AHS undertook to be the Edmonton site for the clinical trial, which involves sites in three provinces. Dr. Gerry Predy agreed to be the Principal Investigator for the trial in Edmonton. The clinical trial agreement provides the standard separation of the trial’s funding (the responsibility of Afexa) from the execution and conducting of the trial (the responsibility of AHS and the Principal Investigator). Contrary to media reports, Alberta Health Services is the institution conducting the Edmonton portion of the pediatric clinical trial on COLD-FX.

The newspaper advertisement which has become the subject of recent media reports was developed collaboratively by the parties to the clinical trial agreement and was intended solely to recruit participants for the trial. Advertising by the institution conducting the clinical trial is a common recruitment method. In fact, the identical advertisement had previously been used by AHS for just such purpose for this trial. It should also be noted that the advertisement in question was approved by the joint AHS/University of Alberta medical-research ethics board overseeing the trial. Further, the clinical trial itself has received all required approvals from the medical-research ethics board and suggestions that the recruitment for the trial has been halted for ethical or other similar reasons are incorrect.

Like much of the biotechnology/pharmaceutical industry Afexa works closely with health authorities, universities and research centres in Canada and the United States to develop medicines for public health. We are proud of our research record.