QRxPharma Limited (ASX:QRX), and China Aoxing Pharmaceutical Company (OTCBB：CAXG) (“China Aoxing”) announced today a strategic alliance to collaborate in the development of MoxDuo®IV, an intravenous formulation of QRxPharma’s patented morphine and oxycodone Dual-Opioid™ technology for the acute treatment of moderate to severe pain. Under the terms of the agreement, China Aoxing will fund the development of MoxDuo®IV for the China market in exchange for exclusive marketing rights in China. QRxPharma will retain ownership of MoxDuo®IV and may use the clinical work completed by China Aoxing for product registration purposes outside of China.

“We are pleased to announce this strategic alliance as it furthers our MoxDuo®IV development objectives and provides access to an important and rapidly growing market,” said Dr. John Holaday, Managing Director and Chief Executive Officer, QRxPharma. “By leveraging China Aoxing’s technical resources, we are able to cost effectively advance
development of MoxDuo®IV. Our team will work closely with China Aoxing to ensure the development program meets both US Food and Drug Administration (FDA) and China State  Food and Drug Administration (SFDA) regulatory requirements.” China Aoxing has also licensed the rights to the China market for MoxDuo®IR, an immediate release capsule presently in pivotal Phase 3 studies in the United States. A binding term sheet has been signed by the parties and the transaction is expected to be closed by the end of March 2010.

“We are excited to enter into this strategic alliance with QRxPharma to co-develop two promising drugs for China and ex-China markets,” said Zhenjiang Yue, the CEO and
Chairman of China Aoxing. “This partnership further solidifies China Aoxing’s leading position in the rapidly growing narcotics and pain management market in China. It also
bolsters our capability to develop and bring to market innovative, high-value medicines that have the potential to address significant unmet medical needs. We believe that the partnership will generate significant opportunities and benefits for both companies.”
 
In July 2009, QRxPharma announced the initiation of a comparative proof-of-concept study to evaluate the efficacy and safety of MoxDuo®IV versus IV morphine alone for the treatment of moderate to severe post-operative pain in patients following hip replacement surgery. Data from this study, available in 2Q 2010, may serve as a significant predictor of MoxDuo®IV’s clinical benefits and provide guidance for the design of clinical trials with China Aoxing which may be used to support any later submission of a New Drug Application (NDA) with the FDA.

MoxDuo®IV is one of three complementary Dual-Opioid™ products in development. MoxDuo®IR, an immediate-release oral formulation, is in pivotal Phase 3 trials and clinical
studies for a controlled-release oral formulation will be initiated in the near future. Extensive clinical studies have demonstrated QRxPharma’s Dual-Opioids™ provide as good or better pain relief with significantly fewer side effects, giving doctors and patients more options in the treatment of moderate to severe pain from the hospital to the home.