ACRUX LIMITED — Capital/Financing Update 2008

Nov 11, 2008

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ACRUX ADDS TOPICAL PAIN RELIEF DRUGS TO PRODUCT PIPELINE

• Non-steroidal anti-inflammatory drugs (NSAIDs) are widely used to reduce pain and inflammation

• Topical NSAIDs achieve a more targeted delivery and fewer side effects than oral NSAIDs

• Leading topical NSAID gel has annual sales of US$750m

• Acrux NSAID formulations demonstrate a 5 to 9 times higher delivery compared with marketed topical products

• Discussions with potential commercial partners initiated

Melbourne, 12 November 2008: Acrux (ASX: ACR) today announced the addition of a valuable new range of drugs to its product pipeline. Acrux’s novel skin spray formulations of three non-steroidal anti-inflammatory drugs (NSAIDs) have demonstrated superior delivery of the drugs compared with currently marketed products.

NSAIDs are widely used to reduce pain and inflammation in conditions such as osteoarthritis. The prevalence of osteoarthritis and the market for NSAIDs are expected to grow as life expectancy increases. Gels, creams and patches applied to the affected area (“topical NSAIDs”) can provide more targeted delivery of the drug to the affected joint and avoid some of the side effects associated with oral NSAIDs. Topical NSAIDs have traditionally been used in markets outside the USA and in October 2007 the first topical NSAID was approved for sale by the US Food and Drug Administration (FDA) to treat osteoarthritis pain. In 2007 sales outside the USA of a leading gel containing diclofenac were US$750 million, with future sales in the US market estimated to add a further US$300 million.

Acrux has tested novel formulations containing diclofenac, ketoprofen and ibuprofen , which are the drugs used in many of the major marketed brands of topical NSAIDs. The formulations and a marketed product containing each drug were compared using human skin in the laboratory. The Acrux formulations showed between 5 and 9 times higher delivery of the drug through the skin. These results show the potential to improve the effectiveness of the current marketed therapy and reduce the amount of drug in each dose.

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Acrux intends to develop and commercialise topical NSAID sprays in collaboration with commercial partners in the major markets and has initiated partnering discussions.

Acrux CEO Richard Treagus commented “These compelling results provide an exciting and valuable new therapy area for Acrux’s proven technology platform. The recent arrival of topical NSAIDs in the US market makes this a particularly attractive commercial opportunity.”

Acrux Contact:

Dr Richard Treagus, CEO & Managing Director Tel: +61 3 8379 0100 Mobile: +61 417 520 509

About Acrux - www.acrux.com.au

• Acrux is an Australian drug delivery company, developing and commercialising a range of patient-preferred, patented pharmaceutical products for global markets, using its innovative technology to administer drugs through the skin.

• Fast-drying, invisible sprays or liquids provide a delivery platform with low or no skin irritation, superior cosmetic acceptability and simple, accurate and flexible dosing. The technology platform is covered by broad and welldifferentiated, issued patents.

• Acrux has one product, Evamist™ (brand name Ellavie™ outside the USA) to treat menopause symptoms, marketed by its licensee in the USA and has the following products in clinical development:

  • Testosterone MD-Lotion[®] to treat testosterone deficiency in men

  • Testosterone MDTS[®] to treat decreased libido in women

  • Nestorone[®] MDTS[®] contraceptive sprays for women

  • An undisclosed companion animal health product

  • Fentanyl MDTS[®] to treat chronic pain

  • Nicotine MDTS[®] for smoking cessation

• Acrux has licensed USA rights for Evamist™ to KV Pharmaceutical and for Testosterone MDTS[®] to VIVUS, and AUS/NZ distribution rights for Estradiol MDTS[®] to Aspen Pharmacare and for Testosterone MDTS[®] and Fentanyl MDTS[®] to CSL Limited. Acrux has also licensed its technology to Eli Lilly and Company for veterinary healthcare products and has an exclusive commercial manufacturing alliance with Orion Corporation.

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