Wex Pharmaceuticals Inc. Reports Second Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - August 13, 2010) - WEX Pharmaceuticals Inc. ("WEX" or the "Company") (TSX: WXI) reported events and financial results for the three-month and six-month periods ended June 30, 2010. All amounts, unless specified otherwise, are in Canadian dollars.

Second Quarter and Subsequent Events

--  On July 12, 2010, Pharmagesic (Holdings) Inc. ("Pharmagesic"), a wholly
    owned subsidiary of CK Life Sciences Int'l (Holdings) Inc., announced
    its intention to make an unsolicited take-over bid (the "Offer") for all
    of WEX's outstanding restricted voting shares not currently held by
    Pharmagesic at an offer price of $0.13 cash per share. Pharmagesic is
    the holder of approximately 88.7% of WEX's issued and outstanding
    restricted voting shares and the sole Class A Share. The board of
    directors of WEX has formed a special committee of independent directors
    (the "Special Committee") to review and respond to the proposal. As the
    Offer will be an "insider bid" under applicable securities laws the
    Special Committee will commission a valuation of WEX's restricted voting
    shares. Pharmagesic has advised that its preparedness to proceed with
    the Offer is subject to the outcome of the valuation. 

--  During the quarter ended June 30, 2010, the Company continued to focus
    its efforts and resources on the Canadian pivotal trials for TTX, TEC-
    006 and TEC-006OL. As of August 13, 2010, the Company has 12 active
    sites and has enrolled 82 patients in the TEC-006 trial. About 65% of
    the patients who completed the TEC 006 trial chose to enrol in TEC-
    006OL.

--  As previously reported, the Company has now enrolled the 60 evaluable
    patients required for the planned interim analysis. The interim analysis
    will be conducted by a Data Monitoring Committee ("DMC"), which will
    also make a recommendation on continuing the trial based on a review of
    the safety and efficacy assessments. This recommendation is expected to
    be received by mid-September this year. Assuming that the DMC recommends
    that WEX continue the trial to the planned 120 evaluable patients, the
    Company anticipates that patient enrolment will be completed in the
    first half of 2011.

--  As previously reported, during the quarter ended March 31, 2010, the
    Company, through a contractor, developed a suitable assay for a human
    pharmacokinetic study of TTX. An agreement has been signed with a
    contract research organization for the conduct of the study and dosing
    began on July 12, 2010 and was completed on August 3, 2010. Results from
    this PK study are expected to be available in the fourth quarter of
    2010.

--  As previously reported, on May 7, 2010, the Company signed a service
    agreement with Shanghai Syn-The-All Pharmaceutical Co., Ltd. ("STA") of
    Shanghai, China. STA is a subsidiary of WuXi AppTec, a global
    pharmaceutical, biopharmaceutical and medical device outsourcing
    company. Pursuant to the service agreement, STA will build a
    manufacturing suite in one of its existing facilities to produce TTX
    using equipment and processes designed by WEX. As a consequence of this
    move, the Company is in the process of winding down operations at its
    facility in Nanning, China.

For the three months ended June 30, 2010, the Company recorded a loss of $1.43 million ($0.00 per share) compared to a loss of $2.09 million ($0.03 per share) in the same period in the preceding year. The decrease in loss of $0.66 million for the three months ended June 30, 2010, when compared to the same period in the preceding year, is mainly attributable to the elimination of interest expense on a convertible debenture due to its conversion into restricted voting shares in October 2009, offset by the current period's increase in research and development activities for the TEC-006 and TEC-006OL clinical trials.

For the six months ended June 30, 2010, the Company recorded a loss of $2.97 million ($0.01 per share) compared to a loss of $4.64 million ($0.08 per share) in the same period in the preceding year. The decrease in loss of $1.67 million for the six months ended June 30, 2010, when compared to the same period in the preceding year, is mainly attributable to the elimination of interest expense on convertible debenture due to the conversion into restricted voting shares on October 2009 and the decrease in net loss from discontinued operation. In upcoming periods, the Company's losses are expected to increase primarily as a result of increased research and development expenditures.

The Company had cash and cash equivalents and short-term investments of $21.51 million as at June 30, 2010 compared to $5.20 million as at December 31, 2009.

For further details, please refer to the unaudited interim consolidated financial statements and Management's Discussions and Analysis for the three and six month periods ended June 30, 2010 on www.sedar.com.

About WEX Pharmaceuticals Inc.

WEX Pharmaceuticals Inc. is dedicated to the discovery, development, manufacture and commercialization of innovative drug products to treat pain. The Company's principal business strategy is to derive drugs from naturally occurring toxins and develop proprietary products for the global market.

Forward Looking Statements and Information

Certain statements herein may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Forward-looking statements or information appear in a number of places and can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are subject to such risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. See our annual information form and our quarterly and annual management's discussion and analysis for additional information on risks and uncertainties relating to the forward-looking statement and information. There can be no assurance that forward-looking statements or information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond the control of the Company. Accordingly, readers should not place undue reliance on forward-looking statements or information. All forward-looking statements and information made herein, are qualified by this cautionary statement.