MONTREAL, QUEBEC--(Marketwire - Oct. 11, 2011) - Thallion Pharmaceuticals Inc. (TSX:TLN) today announced its operational and financial results for the three-month and nine-month periods ended August 31, 2011.

Operational Highlights

• Dr. Allan Mandelzys, Thallion's Chief Executive Officer, appeared on Bloomberg and BNN television programs to discuss the Company's Shigamabs® product and the Shiga toxin-producing E. coli bacteria ("STEC") infection outbreak in Europe.
  
  
• Subsequent to quarter-end, Dr. Didier Reymond, Thallion's Executive Vice President, Clinical Development, delivered a presentation entitled "Characterization of a new Shiga-toxin antibody" as an invited speaker at the EHEC/HUS in Germany 2011 Scientific Symposium in Berlin
  
  
• Temporarily suspended screening and enrollment in the Phase II SHIGATEC study high dose cohort as a precautionary measure due to a preliminary product out-of-specification finding observed during routine long-term stability testing of its current anti-Stx1 monoclonal antibody clinical batch.
  
  
• Subsequent to quarter-end, the Company announced that it is re-activating the SHIGATEC study and resuming patient recruitment. In parallel, the Company and its development partner, LFB Biotechnologies ("LFB"), have also committed to the manufacturing of a new lot of anti-Stx1 clinical material to provide further assurance for the timely completion of the trial.
  
  

"With the timely resumption of patient enrollment at the beginning of the STEC infection high season, and the heightened public and government awareness of the urgent need for a viable STEC infection treatment, we are now driving the clinical development of Shigamabs® forward with renewed vigor and commitment," said Dr. Mandelzys. "We look forward to updating you on our progress over the coming months."

Financial results for the three-months and nine-months ended August 31, 2011

Collaboration and licensing revenues for the three-month and nine-month periods ended August 31, 2011 were $772,335 and $2,627,251, respectively, compared to $1,282,788 for the three-month and $2,330,104 for the nine month periods ended August 31, 2010. Revenue recognized for the three-month period ended August 31, 2011 decreased when compared to the same period in 2010 due to a decrease in research and development expenses ("R&D) in the third quarter of 2011 resulting from the aforementioned temporary suspension of the Phase II SHIGATEC study.

The Company recorded a net loss of $897,826 or $0.03 per share in the three-month period ended August 31, 2011, compared with $351,394 or $0.01 per share in the corresponding period in 2010. This increase in net loss is mainly attributable to lower collaboration and licensing revenues resulting from an 18% decrease in R&D expenses in addition to a $63,575 write-off of an asset held for sale in the third quarter of 2011. For the nine-month period ended August 31, 2011, the Company recorded a net loss of $2,714,500 or $0.08 per share, compared to $3,751,980 or $0.12 per share for the same period last year. This decrease in net loss is primarily due to higher collaboration and licensing revenues and a reduction in R&D expenses.

As at August 31, 2011, the Company's total cash and short-term investments amounted to $9,698,012.

Thallion had 32,194,566 common shares, 2,802,950 stock options and 530,000 warrants outstanding as of October 11, 2011.

The Company's financial statements and management's discussion and analysis are available on [ www.sedar.com ].

About Thallion Pharmaceuticals Inc.

Thallion Pharmaceuticals Inc. (TSX:TLN) is a biotechnology company developing pharmaceutical products in the areas of infectious disease and oncology. The Company's clinical programs include Shigamabs^® and TLN-4601, a novel anti-cancer therapy. Shigamabs^® is a dual antibody product being evaluated in a Phase II clinical trial for the treatment of Shiga toxin producing E. coli bacterial infections. Additional information about the Company can be obtained at [ www.thallion.com ].

Forward-Looking Statements

This press release contains certain forward-looking statements, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking statements reflect Thallion's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, the satisfaction of conditions provided in the development and commercialization agreement with LFB, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time-to-time in Thallion's ongoing filings with the Canadian securities regulatory authorities which filings can be found at [ www.sedar.com ]. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Thallion undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable Canadian securities laws.

Contributing Sources

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