Rexahn Pharmaceuticals Provides Third Quarter 2009 Business Update

ROCKVILLE, Md.--(BUSINESS WIRE)-- Rexahn Pharmaceuticals, Inc. (NYSE Amex: RNN), a clinical stage pharmaceutical company commercializing potential best in class oncology and CNS therapeutics, today provided an update on the company's business for the 2009 third quarter.

The Company continued to build momentum with key milestones achieved that feature:

    --  The closing on a licensing and stock purchase agreement with Teva
        Pharmaceutical Industries Limited ("Teva") for the development of the
        Rexahn's novel anti-cancer compound, RX-3117. Teva purchased shares of
        Rexahn's common stock at a price of $1.128 per share and Rexahn is
        eligible to receive additional development and regulatory milestone
        payments, in addition to royalties on net sales worldwide.
    --  The announcement of positive top-line results from a Phase IIa clinical
        study of Serdaxin(R), its major depressive disorder (MDD) drug
        candidate.
    --  The selection of Archexin(TM) by Windhover (www.windhover.com) as one of
        the Top 10 most promising oncology products in development and available
        for strategic partnering.
    --  The promotion of Rick Soni to President and Chief Operating Officer of
        Rexahn, and an expansion of his responsibilities to include the
        development of business strategies, and the execution of the strategic
        and tactical operational plans for the Company.

Commenting on the company's progress, "We continue to make impressive progress across all fronts of the business," said Dr. Chang Ahn, Rexahn's Chairman and Chief Executive Officer. "In this most recent quarter, Rexahn successfully bolstered its financial position and formed a partnership with Teva, a top 20 pharmaceutical company, to develop our novel anti-cancer compound, RX-3117."

Dr. Ahn continued, "During the third quarter, Rexahn also posted positive top-line Phase IIa clinical results for Serdaxin, our major depressive disorder (MDD) drug candidate. These clinical results continue to validate Serdaxin as a preferable future therapy in the standard of care for MDD. During the quarter we also strengthened our management team with the promotion of Rick Soni to President and Chief Operating Officer of Rexahn. Rick has proven to be an excellent representative for our company, bringing a wealth of knowledge, operational experience and strategic relationships with him to his new role."

Rexahn currently has three drug candidates in Phase II clinical trials - Archexin(TM), Serdaxin(R), and Zoraxel(TM). During the third quarter, a randomized, double blind, placebo controlled and dose ranging study of 77 patients found that Serdaxin produced a meaningful improvement over baseline in patients ages 18-65 with symptoms of depression as measured by the Montgomery-Asberg Depression Rating Scale (MADRS) total score.

Dr. Ahn concluded, "With our drug candidates progressing through the clinical trials, and being recognized by the scientific community, the future of our company is bright. I look forward to communicating our continued progress in our end-of-year update."

At September 30, 2009, cash, cash equivalents and marketable securities were $6.2 million. Subsequent to the close of the third quarter, the company raised $5 million in a Registered Direct offering. Rexahn has 71,924,496 shares outstanding following the completion of the offering.

About Rexahn Pharmaceuticals, Inc.

Rexahn Pharmaceuticals is a clinical stage pharmaceutical company dedicated to commercializing first in class and market leading therapeutics for cancer, CNS disorders, sexual dysfunction and other unmet medical needs. Rexahn currently has three drug candidates in Phase II clinical trials - Archexin(TM), Serdaxin(TM), and Zoraxel(TM) - all potential best in class therapeutics, and a robust pipeline of preclinical compounds to treat multiple cancers and CNS disorders. Rexahn also operates key R&D programs of nano-medicines, 3D-GOLD, and TIMES drug discovery platforms. For more information, please visit www.rexahn.com

Safe Harbor

This press release contains forward-looking statements. Rexahn's actual results may differ materially from anticipated results, and expectations expressed in these forward-looking statements, as a result of certain risks and uncertainties, including Rexahn's lack of profitability, and the need for additional capital to operate its business to develop its product candidates; the risk that Rexahn's development efforts relating to its product candidates may not be successful; the possibility of being unable to obtain regulatory approval of Rexahn's product candidates; the risk that the results of clinical trials may not be completed on time or support Rexahn's claims; demand for and market acceptance of Rexahn's drug candidates; Rexahn's reliance on third party researchers and manufacturers to develop its product candidates; Rexahn's ability to develop and obtain protection of its intellectual property; and other risk factors set forth from time to time in our filings with the Securities and Exchange Commission. Rexahn assumes no obligation to update these forward-looking statements.

    Source: Rexahn Pharmaceuticals, Inc.

Released November 17, 2009