Akela Pharma Inc. Completes Share Consolidation

MONTREAL, Oct. 9 /PRNewswire-FirstCall/ - AKELA Pharma Inc., , a drug development company focused on developing therapies for the inhalation, pain and CNS markets, today announced that effective October 10, 2007, its issued and outstanding common shares will be consolidated on the basis of one (1) post-consolidation common share for every seven (7) pre-consolidation common shares. Fractional interests will be paid in cash in U.S. dollars for shareholders other than those in Canada who will be paid in Canadian dollars. The common shares will commence trading on the Toronto Stock Exchange on a post-consolidated basis at the opening of trading on October 10, 2007.

The share consolidation has been effected to satisfy the NASDAQ’s listing criteria regarding minimum bid price. After the share consolidation, the Company will have approximately 11.75 million common shares outstanding. The stock symbol of the Company will remain AKL on the TSX.

About Akela Pharma Inc.

Akela Pharma is an integrated drug development company focused on developing therapies for the growing multi-billion dollar inhalation, pain and CNS markets. Its lead product, for the treatment of breakthrough cancer pain, is a fast-acting Fentanyl formulation delivered using the Company’s TAIFUN(R) dry powder inhaler platform. Its pipeline also includes therapeutics for asthma, COPD, growth hormone deficiencies and controlled substance abuse deterrent formulations.

Akela’s common shares trade on The Toronto Stock Exchange (“TSX”) under the symbol “AKL” with 82.3 million shares outstanding.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of AKELA Pharma Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

CONTACT: visit Akela’s website at www.akelapharma.com, or contact:
Frederic Dumais, Vice-President, Investor Relations, (514) 315-3330 ext.
106, Fax: (514) 315-3325; Tina Posterli (U.S. Media), (917) 322-2565,
tposterli@rxir.com