VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 7, 2011) -[ Allon Therapeutics Inc. ] (TSX:NPC), today announced that its shareholders have approved the investment by Neuro Discovery II Limited Partnership ("ND II LP") which was made as part of its October 2011 prospectus offering. The prospectus offering resulted in gross proceeds of $5,441,875 of which $1,084,032.50 was a subscription receipt from ND II LP and subject to shareholder approval.

Now that shareholders have approved this additional investment these funds are available to the company for ongoing development of its lead clinical program in a pivotal study for [ progressive supranuclear palsy ] and for general corporate purposes.

About Allon

Allon Therapeutics Inc. is a clinical-stage biotechnology company focused on bringing to market innovative central nervous system therapies. Allon's lead drug [ davunetide ] is proceeding in a fully enrolled pivotal Phase 2/3 clinical trial in an orphan indication, progressive supranuclear palsy ([ PSP ]), under a Special Protocol Assessment (SPA) with the U.S. Food and Drug Administration (FDA). This pivotal trial is based upon statistically significant human efficacy demonstrated in patients with amnestic mild cognitive impairment (a precursor to Alzheimer's disease) and cognitive impairment associated with schizophrenia, and in positive biomarker data.

The Company is listed on the Toronto Stock Exchange under the trading symbol "NPC".

Forward Looking Statements

Statements contained herein, other than those which are strictly statements of historical fact may include forward-looking information. Such statements will typically contain words such as "believes", "may", "plans", "will", "estimate", "continue", "anticipates", "intends", "expects", and similar expressions. While forward-looking statements represent management's outlook based on assumptions that management believes are reasonable, forward-looking statements by their nature are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by them. Such factors include, among others, the inherent uncertainty involved in scientific research and drug development, Allon's early stage of development, lack of product revenues, its additional capital requirements, the risks associated with successful completion of clinical trials and the long lead-times and high costs associated with obtaining regulatory approval to market any product which Allon may eventually develop. Other risk factors include the limited protections afforded by intellectual property rights, rapid technology and product obsolescence in a highly competitive environment and Allon's dependence on collaborative partners and contract research organizations. These factors can be reviewed in Allon's public filings at [ www.sedar.com ] and should be considered carefully. Readers are cautioned not to place undue reliance on such forward-looking statements. Similarly, nothing in this press release is meant to promote a pharmaceutical product or make a regulated claim of efficacy.

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