Phosphagenics Researchers Announce Refinements to Oxycodone Patch Design

Melbourne, Australia -- Melbourne drug delivery technology company Phosphagenics Limited (ASX: POH, OTCQX: PPGNY) is pleased to provide a further update to its recent announcement.

Phosphagenics researchers have identified and tested several adhesives that have produced superior in vitro results to the 3M TPM/oxycodone patch. The 3M patch, which used a proprietary 3M adhesive, developed crystallization. Several of the new patch formulations incorporating these alternative adhesives have demonstrated increased oxycodone delivery and solubility, without any crystallization to date (stability testing is, by its very nature, ongoing).

As Phosphagenics patches will now incorporate alternative adhesives to 3Ms proprietary adhesive, Labtec GmbH will conduct the research and development program exclusively with Phosphagenics. In all other respects, the arrangement with 3M remains in place and Phosphagenics will continue to work with 3M.

Labtec is a highly respected specialist in opioid patch development. Recently it successfully developed a fentanyl patch that is now the largest selling fentanyl patch in Germany. It also developed a sufentanil patch, currently undergoing late stage clinical trials. Labtecs state of the art facilities in Germany will also provide advanced manufacturing capability. The Company remains on track to initiate the pivotal Phase 3 trial in Q1CY/2013.

About Phosphagenics

Phosphagenics is commercializing drug delivery applications based on its novel transdermal (drugs administered via skin) TPM - Targeted Penetration Matrix technology. TPM is a patient friendly and cost effective system used to deliver proven pharmaceutical and nutraceutical products. The lead product advancing through clinical trials is an oxycodone matrix system for the relief of chronic pain. Phosphagenics shares are listed on the Australian Securities Exchange (POH) and its ADR - Level 1 program in the US is with The Bank of New York Mellon (PPGNY).