MONTRÉAL, QUÉBEC--(Marketwire - April 24, 2012) - Thallion Pharmaceuticals Inc. (TSX:TLN) today announced its financial results for the 2012 first quarter ended February 29, 2012 and updates progress made in its Shigamabs development program. As previously announced in January, the Company completed patient enrollment for the high dose cohort of the Phase II SHIGATEC trial.

"We are preparing to report preliminary study results at the upcoming 8^th International Symposium on Shiga Toxin (Verocytotoxin)-Producing Escherichia coli Infections (VTEC 2012), which takes place in Amsterdam, the Netherlands, May 6-9^th," said Dr. Allan Mandelzys, Chief Executive Officer of Thallion Pharmaceuticals Inc. "The VTEC conference is the leading international forum on Shiga toxin-producing bacterial infections and provides an excellent platform for the first dissemination of the un-blinded data."

The oral presentation, entitled "SHIGATEC: A phase II study evaluating Shigamabs in STEC-infected children", is expected to be given during the morning session on May 9^th, 2012.

Financial Highlights

Collaboration and licensing revenues for the three-month period ended February 29, 2012, were $616,557 compared to $833,882 for the three-month period ended February 28, 2011. The decrease in revenues is primarily due to a decline in research and development expenses in the first quarter of 2012 compared to the same period in 2011, resulting in an approximate $150,000 reduction in revenues. Additionally, in the fourth quarter of 2011, the Company revised its estimate for clinical and manufacturing costs for both Phase II and Phase III SHIGATEC studies which directly impacted the percentage of completion calculation used to recognize revenues and consequently, resulted in lower revenue recognition in the first quarter of 2012 compared to the first quarter of 2011.

Research and development (R&D) expenses amounted to $1,028,563 in the first quarter of 2012, compared with $1,162,176 in the first quarter of 2011. This decrease is the result of approximately $240,000 in reduced clinical trial expenditures as patients screened/recruited during the first quarter of 2012 were fewer than during the first quarter of 2011. This was partially offset by $60,000 in increased costs related to manufacturing activities and $45,000 in increased costs associated with completion of enrollment of the high dose cohort of the SHIGATEC study.

General and administrative expenses amounted to $613,128 in the first quarter of 2012 and were stable when compared with $607,274 in the first quarter of 2011.

The Company recorded a net loss of $835,254 or $0.03 per share in the first quarter of 2012, compared with $1,009,810 or $0.03 per share in the first quarter of 2011. This decrease in net loss is mainly attributable to a decrease in R&D expenditures and higher foreign exchange gains recognized in the first quarter of 2012 as a result of changes in the fair value of forward exchange contracts, partially offset by lower collaboration and licensing revenues.

As at February 29, 2012, the Company's unrestricted cash position amounted to $7,165,474, which consists of cash and short-term investments. The Company's liquidity availability amounted to $7,504,044 compared with $8,533,803 on November 30, 2011. The decrease in liquidity is primarily due to the reduction of trade and other payables in addition to cash expenses relating to operations for the first three months of 2012, offset by Shigamabs^® development funding received from LFB. Furthermore, the Company's working capital amounted to $5,929,635 as at February 29, 2012, compared to $6,337,692 as at November 30, 2011, a decrease of $408,057 due primarily to activities related to the Company's first quarter of operations.

As of April 24, 2012, the Company had 32,194,566 common shares outstanding and a total of 3,676,450 stock options outstanding.

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^®, a dual antibody product being evaluated in a Phase II clinical trial for the treatment of Shiga toxin-producing E. coli bacterial infections, and TLN-4601, a novel anti-cancer therapy. 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.