Rexahn sells rights to three drug candidates to Korean firm for $35.8 million

By Lisa Kerner

Erie, Pa., April 24 - Rexahn Pharmaceuticals, Inc. executed definitive agreements with Future Systems, Inc., a Seoul, Korea-based information technology company.

Under the agreements, Rexahn will transfer to Future Systems exclusive rights to develop, manufacture and sell three of Rexahn's drug candidates in certain territories for $35.8 million.

In return, Future Systems will issue and sell 28% of its outstanding shares of its common stock, or roughly 4.327 million shares, to Rexahn, making it Future Systems' largest single stockholder.

All the transactions are expected to be closed during the second quarter of 2006.

"The investment in Future Systems strengthens our company and provides Rexahn an opportunity to expand our access to the Asian market while reducing our risks through diversification," chief financial officer Ted Jeong said in a news release.

Rexahn's plans may include the acquisition of a Korean pharmaceutical company, as well as licensing, manufacturing, sales and marketing of current and future drug candidates in Korea and Asia, officials said.

The principal acquisition agreements between Rexahn and Future Systems include a share subscription agreement and an intellectual property assignment agreement.

Rexahn is a clinical-stage biopharmaceutical company based in Rockville, Md.

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