Thallion Pharmaceuticals Inc.

Thallion Pharmaceuticals Inc.

February 20, 2013 07:30 ET

Thallion Initiates Strategic Review Process

MONTRÉAL, QUÉBEC--(Marketwire - Feb. 20, 2013) - Thallion Pharmaceuticals Inc. (TSX VENTURE:TLN) ("Thallion" or "Company") today announced that a Special Committee comprised of independent directors of its Board of Directors (the "Board") has engaged a leading healthcare-specialized investment banking group to conduct both a strategic review of the Company and to assist the Board in identifying and evaluating potential corporate opportunities, all with a view to maximizing the full value of the Company's assets and shareholder value. Although the outcome of this review is uncertain, the possibilities include, but are not limited to, the continued development of Shigamabs®, in-licensing of additional clinical assets, merger, acquisition or sale transaction. Thallion has not established a definitive timeline to complete its review and will be assessing all available alternatives within the next few months. It is Thallion's current intention not to disclose developments with respect to the process, unless and until the Board has approved a specific transaction, if any, reached a conclusion with respect to available alternatives, or otherwise determines that disclosure is necessary or appropriate. The Company cautions that there are no assurances or guarantees that the process will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction. In the meantime, Thallion will complete the one year patient follow-up safety assessment and close out the SHIGATEC trial as per protocol over the next three months. All other material spending on the Shigamabs® program will be temporarily suspended.

"With more than $10 million in capital, limited liabilities and a clean balance sheet, we believe Thallion's intrinsic value continues to far exceed its current market capitalization," said Dr. Allan Mandelzys, CEO of Thallion. "With the help of our advisors and the support of our Board, we are hopeful in leveraging our cash, management team and clinical development expertise to generate the best value creating opportunities available for the benefit of all our shareholders."

About Thallion Pharmaceuticals Inc.

Thallion Pharmaceuticals Inc. (TSX VENTURE:TLN) is a biotechnology company developing pharmaceutical products in the areas of infectious disease and oncology. The Company's clinical programs include Shigamabs® and TLN-4601, a novel anti-cancer therapy. Shigamabs® is a dual antibody product being evaluated in a Phase II clinical trial for the treatment of Shiga toxin-producing E. coli bacterial infections. Additional information about Thallion can be obtained at

Forward-Looking Statements

This press release contains certain forward-looking statements, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking statements reflect Thallion's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, risks relating to the outcome of the strategic review process. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Thallion undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable Canadian securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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