SOURCE: China Aoxing Pharmaceutical Co., Inc.

China Aoxing Pharmaceutical Co., Inc.

September 17, 2009 08:00 ET

China Aoxing Pharmaceutical Company Receives SFDA Approval for Clinical Trial of Abuse Resistant Opioid Drug

A Milestone Reached to Commercialize Leading Oral Drug for Treatment of Moderate to Severe Pain

NEW YORK, NY--(Marketwire - September 17, 2009) - China Aoxing Pharmaceutical Company, Inc. (OTCBB: CAXG) ("China Aoxing"), a China-based pharmaceutical company specializing in research, development, manufacturing and distribution of narcotic and pain-management products, today announced that its Clinical Trial Application ("CTA") for Tilidine/Naloxone Capsules, an opioid drug with abuse resistance property, was officially approved by the China State Food and Drug Administration ("SFDA"). CTA approval is a key SFDA requirement prior to pursuing a clinical trial and, ultimately, commercialization of a pharmaceutical product in China. The company hopes to begin the clinical trial by the end of this year, and estimates that receipt of a market license could occur sometime in 2011. The drug is designated as a Class III New Medicine with approximately at least three-year market exclusivity protection upon marketing clearance by the China SFDA.

Tilidine/Naloxone Capsules were developed with China Aoxing's proprietary technology, which combines Tilidine, an effective opioid agonist, with Naloxone, an opioid antagonist, to address moderate to severe pain, such as cancer pain and post-operative pains. Based on clinical trials in Europe, when Tilidine/Naloxone Capsules were taken as directed, pain relief was provided and Naloxone passed through the body without observed clinical effect. If the Capsules is crushed or dissolved in alcohol, which are common approaches abusers use to tamper with an opioid product in order to gain euphoria, both Tilidine and the Naloxone are released, and the euphoric effect of Tilidine was significantly reduced.

"Today's announcement speaks to our unique capability to commercialize narcotic pharmaceutical products in the Chinese market," stated Zhenjiang Yue, Chairman and CEO of China Aoxing. "CTA acceptance is one key step toward reaching marketability. To the best of our knowledge, we could be the first pharmaceutical company to bring Tilidine/Naloxone Capsules to China. This is a great example of our ability to target under-penetrated areas with drugs that improve the overall health of the population. We remain excited about the growth prospects for abuse resistant painkiller in China, which just becomes a new therapeutic paradigm in developed countries. We intend to continue to bring high value, niche-focused prescription drugs, with rigor and prudence, to the growing Chinese healthcare market."

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTCBB: CAXG) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE: AOB) to develop and market various narcotic drugs in China. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

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