Allon Therapeutics, Inc. Receives Qualifying Therapeutic Discovery Project Grants of Approximately $500,000 for Drug Development From U.S. Government

VANCOUVER, BRITISH COLUMBIA--(Marketwire - November 04, 2010) - Allon Therapeutics Inc. (TSX: NPC) announced today that its wholly-owned United States subsidiary has been awarded two non-taxable grants totalling approximately $500,000 from the United States government under the Qualifying Therapeutic Discovery Project (QTDP) program. Therapeutic discovery projects that show reasonable potential to result in new therapies to treat areas of unmet medical need; prevent, detect, or treat chronic or acute disease and conditions; and reduce long-term health care costs in the United States are eligible for the QTDP program under the Patient Protection and Affordable Health Care Act of 2010. The grants awarded to the Company will help fund development of Allon's clinical-stage neuroprotective drug candidate davunetide as a treatment for progressive supranuclear palsy (PSP) and preclinical-stage drug candidate AL-309 as a treatment for peripheral neuropathy.

About davunetide

Davunetide is derived from a naturally occurring neuroprotective brain protein known as activity dependent neuroprotective protein (ADNP). Allon's laboratory and animal studies have shown that davunetide improves cognition in a number of disease models through a mechanism believed to involve effects on microtubules, structures in the brain critical to communication between cells.

About Allon's neuroprotective platforms

Allon's two neuroprotective technology platforms are based on two naturally occurring proteins produced by the brain in response to a range of insults. The platforms are activity-dependent neuroprotective protein (ADNP) and activity-dependent neurotrophic factor (ADNF).

Because the two platforms are based on different proteins, the drugs from each are different molecules with different therapeutic mechanisms and distinct commercial opportunities. Clinical-stage drugs based on davunetide are derived from ADNP, while preclinical stage drug AL-309 is derived from ADNF. Davunetide is focused on Alzheimer's disease, cognitive impairment associated with schizophrenia, and PSP. AL-309 is being developed for the treatment of peripheral neuropathies and is administered orally or subcutaneously.

About Allon

Allon Therapeutics Inc. is a clinical-stage biotechnology company developing treatments for major neurodegenerative conditions. Allon's drug davunetide has demonstrated human efficacy in amnestic mild cognitive impairment, a precursor to Alzheimer's disease, and cognitive impairment associated with schizophrenia. Allon has Phase 2 human efficacy programs pursuing large underserved markets, such as Alzheimer's disease and cognitive impairment associated with schizophrenia, and in orphan markets, such as frontotemporal dementias. The Company is listed on the Toronto Stock Exchange under the trading symbol "NPC" (Neuro Protection Company™) and based in Vancouver. For additional information please visit the Company's website: www.allontherapeutics.com.

Forward Looking Statements

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