Allon Therapeutics Inc.

Allon Therapeutics Inc.

September 12, 2007 09:00 ET

Allon Commences Phase II Schizophrenia Trial and Updates Clinical Progress

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 12, 2007) - Allon Therapeutics Inc. (TSX:NPC), The Neuro Protection Company™, announced today that enrolment has commenced in a Phase II clinical trial evaluating Allon's product AL-108 as a treatment for schizophrenia-related cognitive impairment. This study is being conducted in collaboration with TURNS (Treatment Units for Research on Neurocognition and Schizophrenia) and with support from the National Association for Research in Schizophrenia and Affective Disorders (NARSAD).

Gordon McCauley, President and CEO of Allon, said the progress is an important next step in determining AL-108's effectiveness in schizophrenia and a broad range of neurological indications. "This third Phase II trial is an important milestone for the Company," McCauley said. "The diversity of our clinical program is an important element to creating shareholder value, exploiting our technology platforms, and certainly helping millions of people suffering from a variety of neurological diseases."

The Phase II trial is a multicenter, double blind, placebo-controlled study, evaluating AL-108 as a potential treatment for cognitive impairment in schizophrenia. The objectives for the trial are to evaluate cognitive impairment using the MATRICS neuropsychological test battery and to assess functional outcome and safety measures. MATRICS is a battery of cognitive tests developed by TURNS to assess cognitive function in schizophrenia patients and is a widely used measure in this area.

"We are very pleased with the professional relationship with TURNS," McCauley added, "as they proceed with our drug in this trial, it is important that they are doing so with great determination that utilises their expertise."

Allon and TURNS recently announced an imaging-biomarker component to this trial. Three different imaging techniques will be used to investigate the scope of AL-108 effects in the treatment of schizophrenia and to better understand the impact of AL-108 treatment on brain structure and neural connectivity, both of which are significant to each of Allon's clinical programs.

Phase II clinical trial updates

Allon is also updating its guidance on the progress of its other two clinical programs.

Allon's Phase II efficacy trial evaluating AL-108 as a treatment for Alzheimer's disease is expected to be the first of the three Phase II trials to report top line efficacy data, with results expected in Q1 2008.

This trial is ahead of schedule and the Company has closed patient screening and expects enrolment to be completed shortly. The Company attributes the acceleration of the trial to the straightforward trial design, clarity within the screening assessments and the strong collaboration with treatment facilities.

The third Phase II trial, evaluating AL-208 as a treatment for the Mild Cognitive Impairment associated with Coronary Artery Bypass Graft surgery (MCI-CABG), will also report in the first half of 2008, approximately one quarter later than previous guidance. The trial is recruiting more slowly than anticipated which Allon attributes in part to the conservative nature of the trial design necessary to avoid confounding results, and the novelty of the indication for which no therapy exists currently. Minor adjustments have been made to the trial design to facilitate patient recruitment but the Company will not make adjustments that, in its judgement, will jeopardize the validity of the trial.

About Allon

Allon Therapeutics Inc. is a clinical-stage Canadian biotechnology company developing drugs that protect against neurodegenerative conditions such as Alzheimer's, cognitive impairment, stroke, traumatic brain injury, multiple sclerosis and neuropathy. 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:

Forward Looking Statements

There are forward-looking statements contained herein that are not based on historical fact, including without limitation statements containing the words "believes", "may", "plans", "will", "estimate", "continue", "anticipates", "intends", "expects", and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, Allon's stage of development, lack of product revenues, additional capital requirements, risks associated with the completion of clinical trials and obtaining regulatory approval to market Allon's products, the ability to protect its intellectual property and dependence on collaborative partners. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.

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