WEX Pharmaceuticals Inc.

WEX Pharmaceuticals Inc.

June 27, 2008 18:20 ET

WEX Reports Year End Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 27, 2008) - WEX Pharmaceuticals Inc. ("WEX" or the "Company") (TSX:WXI) reported major events and financial results for the fiscal year ended March 31, 2008. All amounts, unless specified otherwise, are in Canadian dollars.

Major Events

- In May 2007, the Company filed a Clinical Trial Application with Health Canada for Tectin and subsequently received a No Objection Letter allowing the Company to conduct a Phase III clinical trial in cancer pain (TEC-006). This multi-centre, randomized, double-blind, and placebo-controlled trial will include approximately 120 patients with moderate to severe cancer-related pain. A primary composite endpoint that evaluates pain reduction with an improvement in quality of life will be used to define true responders to treatment. In early April 2008, the Company announced the enrolment and dosing of the first patient in the TEC-006 trial.

- In October 2007, the Company closed a private placement of equity and debt with CK Life Sciences Int'l. Inc. ("CKLS"), pursuant to a Subscription Agreement entered into in July 2007. Under the terms of the Agreement, a subsidiary of CKLS subscribed for 16,327,272 restricted voting common shares of WEX, representing approximately 27% of the issued and outstanding common shares (including the issuance of such shares), at a price of $0.275 per share for a total consideration of approximately $4,490,000 and a convertible debenture to be received in a series of quarterly instalments in the principal sum of $15,600,000. The subscription agreement is available at www.sedar.com. The proceeds from the CKLS financing were used in part to pay out the holders of the 5.5% convertible debentures denominated in US dollars under which approximately $3.2 million (US$3.2 million) face value of the convertible debentures was outstanding for the agreed discounted lump sum amount of $2.0 million (US$2.0 million). Concurrent with the CKLS financing, the Company entered into settlement agreements with several parties, a termination agreement with a senior executive, and acquired the remaining 3% of Nanning Maple Leaf Pharmaceutical Co. Ltd.

- In November 2007, the Company appointed Dr. Bin Huang as President and Chief Executive Officer. Dr. Huang's previous experience includes 2 years as CEO of GeneHarbour Technologies (Hong Kong) and 5 years as President and CEO of Cytovax Biotechnologies Inc. in Canada. Additionally, she served as Vice President of Business Development at Monsanto Canada, and was a top-ranked biotech analyst in Canada while she was a partner at GMP Securities.

- WEX has also successfully recruited an experienced financial controller, Mr. Kwong Choo, who joined the Company full time in January 2008. Mr. Choo has over 20 years of experience in finance and accounting, including 10 years as a financial controller in Canada.

- In May 2007, WEX and its partner, Laboratorios del Dr. Esteve, S.A. ("Esteve"), entered into a termination agreement (the "Termination Agreement") to amicably end their collaboration for the development of TTX as an analgesic. The partnership, formed in 2002, was aimed at obtaining approval from regulatory authorities for the marketing of TTX in Europe. Under the Termination Agreement, WEX retains exclusive worldwide rights to all its intellectual property predating the collaboration, as well as all intellectual property developed by the parties during their collaboration.

Subsequent Events

- In April 2008, the U.S. Patent and Trademark Office issued a Reexamination Certificate for United States Patent No. 6,407,088, titled "Method of Analgesia". This patent relates to the use of TTX for producing analgesia in humans. As reexamined, the patent maintains broad protection for the use of TTX at pharmaceutically acceptable doses to relieve pain in humans.

- In June 2008, the Company appointed Dr. Jean Bourgouin to the position of Chief Scientific Officer. Dr. Bourgouin's previous experience includes eight years as Vice President of Scientific Affairs at Rhone-Poulenc Rorer in Canada (now Sanofi-Aventis Canada). He also served as Chief Medical Officer of WEX from March 2005 to March 2006 and subsequently, he has held the position of Vice President of Medical Affairs at Bradmer Pharmaceuticals.

Financial Results

For the fiscal year ended March 31, 2008, the Company recorded a net loss of $2.799 million ($0.05 per share) compared to a net loss of $4.760 million ($0.13 per share) for the fiscal year ended March 31, 2007. This decrease in net loss of $1.961 million is due to, amongst other items, gain in the settlement of the series 5.5% convertible debentures, recognizing in full the deferred revenue as income on termination of the Esteve collaboration arrangement, expense reductions relating to discontinuing all clinical trials in March 2006, staff reductions, reduced amortization, reduction of other overhead expenses and foreign exchange gains but offset with increased legal fees incurred due to the CKLS financing, costs incurred to settle legal actions and reductions in scientific research and development tax credits.

The Company had cash, cash equivalents and short-term investments of $3.816 million as at March 31, 2008 compared to $1.627 million as at March 31, 2007.

For further details, please refer to the Consolidated Financial Statements and Management's Discussions and Analysis for the fiscal year ended March 31, 2008 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.

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