The article, “Tau and Caspase 3 as Targets for Neuroprotection”, was authored by Professor Illana Gozes, scientific founder of Allon. Professor Gozes also gave the presentation at the Springfield Symposium. The manuscript and presentation describe the neuroprotective effect of davunetide at preventing apoptosis, or cell death, in different cellular pathways associated with neurodegenerative diseases like Alzheimer’s and progressive supranuclear palsy (PSP), a devastating and progressive brain disease affecting movement, speech, and behaviour.

PSP is considered a tauopathy, involving the tau protein in brain cells. Allon has previously demonstrated, in both preclinical and clinical studies, that davunetide has an impact on the tau pathology. Davunetide is currently being tested in a pivotal clinical trial as a potential treatment for PSP which makes it the most advanced tau therapy in the world.

The Company believes that success in treating PSP with davunetide would define the opportunity to investigate davunetide in other tau-related diseases, such as Alzheimer’s, subtypes of frontotemporal dementia, as well as other neurodegenerative diseases like schizophrenia and Parkinson’s.

International Journal of Alzheimer’s Disease is a peer-reviewed journal that publishes original research articles, review articles, and clinical studies in all areas of Alzheimer’s disease. A downloadable version of the full article can be found at the following link: http://www.hindawi.com/journals/ijad/aip/493670/

The 12^th International Stockholm / Springfield Symposium on Advances in Alzheimer Therapy is a bi-annual meeting that distinguishes itself from other scientific meetings of its kind for two reasons.  It is the only international meeting that focuses entirely on the pharmacological therapy of Alzheimer’s disease with particular emphasis on the discovery of new drugs.  Also, the meeting is jointly organized by an American and two European research institutions.

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 pivotal 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). The trial is fully enrolled and is expected to complete patient dosing and release top-line data by late 2012. This pivotal trial is based upon statistically significant human efficacy demonstrated in patients with amnestic mild cognitive impairment (a precursor to Alzheimer’s disease), 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.

FOR FURTHER INFORMATION PLEASE CONTACT:
Rick Smith
Allon Therapeutics Inc.
Director, Investor Relations
(604) 742-2543
info@allontherapeutics.com
www.allontherapeutics.com

Gordon McCauley, Allon’s President and CEO, said the Company’s most significant achievement during the first quarter of 2012 was its progress on the pivotal clinical trial evaluating lead drug candidate davunetide, as a treatment for progressive supranuclear palsy (PSP).

McCauley said the independent Data Safety Monitoring Board (DSMB) that is monitoring the trial completed its third review and unanimously recommended continuing the trial without any change or modification to the protocol.

McCauley also noted that Allon’s completion of a $10 million equity financing on May 2 ensures that the Company is in a strong financial position as it enters the final stages of the pivotal trial. “We are encouraged by the addition of new sophisticated institutional investors from the U.S. and Europe as well as the continued support from our existing shareholders,” McCauley said.

“My colleagues have done an exemplary job executing this study and consequently we remain on track to complete patient dosing in our pivotal trial, analyze data and release top-line results by late 2012,” McCauley said. “With the recent equity financing of $10 million, we have secured the financial resources needed to complete these objectives and to continue to advance davunetide towards commercialization as a treatment for PSP if the trial results warrant.”

PSP is a devastating neurodegenerative disease with no approved treatments and a market potential in excess of $700 million in the U.S. and Europe.

A DSMB is a group of clinical experts with the primary responsibility of monitoring the safety and well-being of subjects and to assure scientific integrity of the study.  A DSMB is independent of the company and the clinical investigators, who are blinded from the safety and efficacy data until all treatment has been completed.

Other achievements during the First Quarter included:

• Receipt of a U.S. patent that covers the use of the Company’s neuroprotective technology platform in the treatment of peripheral neuropathy. This includes the Company’s lead drug candidate, davunetide, and pipeline product AL-309 as treatments for peripheral neuropathy caused by anti-cancer drugs
• Advancement into a second set of studies funded by the Michael J. Fox Foundation for Parkinson’s Research to conduct preclinical research that will help determine the potential of davunetide as a treatment for Parkinson’s disease.
• The announcement March 9 that major shareholder Neuro Discovery II Limited Partnership provided a $2.5 million bridge loan facility to ensure Allon’s financial flexibility as it continues its pivotal study in PSP.
• Receipt of an Australian patent covering the use of Allon’s drug candidates, including davunetide and pipeline product AL-309, to treat certain types of peripheral neurotoxicity.
• Publication in the February edition of Neuropsychiatric Disease and Treatment of a review of davunetide as a potential treatment of PSP.

Results of operations
Allon reported a net loss of $2,778,704 ($0.03 per share) for the three months ended March 31, 2012, compared to a net loss of $2,974,076 ($0.04 per share) for the three months ended March 31, 2011, representing a decrease in net loss of $195,372.

For the three ended March 31, 2012, research and development expenses were $2,140,531 compared to $2,013,795 for the three months ended March 31, 2011.  Research and development expenses were slightly higher compared to the same period in 2011 due to an increase in clinical trial activities related to PSP. Research and development expenses also included amortization and depreciation expenses of $127,372 (2011 – $127,539) and share-based compensation of $21,571 (2011 – $8,758).

For the three months ended March 31, 2012, general and administrative expenses were $636,149 compared to $850,885 for the three months ended March 31, 2011. Decline in general and administrative expenses in 2012 as compared to 2011 was primarily due to lower expenses associated with corporate development activities. Included in general and administrative expenses were amortization and depreciation expenses of $2,873 (2011 – $3,796) and share-based compensation of $81,013 (2011 – $45,734).

The Company’s other income and expenses are primarily comprised of interest income/expense and foreign exchange gains/losses. During the three months ended March 31, 2012, the Company incurred interest expense of $25,744 in relation to the convertible loan entered into on March 7, 2012. The Company earned interest revenue of $43 during the three months ended March 31, 2012 compared to $4,900 for the same period in 2011.  Reduced interest earnings resulted from lower average cash balances during the three months ended March 31, 2012 compared to the same period in 2011.

Foreign exchange gain was $23,677 for the three months ended March 31, 2012. This compared to a loss of $114,296 for the same period in 2011. The Company’s foreign exchange exposure is primarily limited to the translation of U.S. dollar denominated balances in cash, cash equivalents and accounts payable to Canadian dollars. The foreign exchange gain in the first quarter of 2012 resulted from the impact of the U.S. dollar’s decline against the Canadian dollar on the Company’s U.S. dollar denominated accounts payable. This compared to the same period in 2011 when even though the U.S. dollar declined as well, the Company had a larger U.S. dollar cash balance which generated an exchange loss that more than offset the exchange gain from its U.S. dollar denominated accounts payable.

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 pivotal clinical trial in an orphan indication, in Progressive Supranuclear Palsy (PSP), under a Special Protocol Assessment (SPA) with the U.S. Food and Drug Administration (FDA). The trial is fully enrolled and is expected to complete patient dosing and release top-line data by late 2012. This pivotal trial is based upon statistically significant human efficacy demonstrated in patients with amnestic mild cognitive impairment (a precursor to Alzheimer’s disease), 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.

FOR FURTHER INFORMATION PLEASE CONTACT:
Rick Smith
Allon Therapeutics Inc.
Director, Investor Relations
(604) 742-2543
info@allontherapeutics.com
www.allontherapeutics.com

Gordon McCauley, President and CEO of Allon Therapeutics said Allon remains on track to complete patient dosing in its pivotal trial in progressive supranuclear palsy (PSP) and release top-line data by late 2012.

“We have secured the financial resources needed for our pivotal trial in PSP as we advance lead product candidate davunetide towards commercialization,” McCauley said.  “PSP is a devastating neurodegenerative disease with no approved treatments and a market potential in excess of $700 million in the U.S. and Europe.”

“We are pleased to have added a number of new institutional investors from both the U.S. and Europe in addition to the significant support from our existing shareholders” added McCauley.

Allon sold 15,612,500 equity units and 24,387,500 subscription receipts convertible upon shareholders approval into Units on a one-for-one basis, both priced at $0.25 each for a total of 40,000,000 units.  Each unit consists of one common share and one half of one common share purchase warrant. Each share purchase warrant will entitle the holder to acquire one common share at a price of $0.40 for a period of 60 months from the closing date of the offering. The Company will seek approval for conversion of the subscription receipts at its June 13 annual meeting. The funds for the subscription receipts have been advanced into escrow pending the shareholders meeting. Neuro Discovery II Limited Partnership subscribed for 19,987,500 subscription receipts and 1,990,000 Units the proceeds of which were paid as to $2.5 million by cancellation of a previously issued convertible debenture and the balance in cash.

Bloom Burton & Co., a healthcare-specialized investment banking group based in Canada, acted as the placement agent for this offering and will receive cash commission and 1,176,906 agent’s warrants exercisable @ $0.25 into Common Shares as consideration for placing a portion of the securities.

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 pivotal clinical trial in an orphan indication, in progressive supranuclear palsy (PSP), under a Special Protocol Assessment (SPA) with the U.S. Food and Drug Administration (FDA). The trial is fully enrolled and is expected to complete patient dosing and release top-line data by late 2012. This pivotal trial is based upon statistically significant human efficacy demonstrated in patients with amnestic mild cognitive impairment (a precursor to Alzheimer’s disease), 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.

FOR FURTHER INFORMATION PLEASE CONTACT:
Rick Smith
Allon Therapeutics Inc.
Director, Investor Relations
(604) 742-2543
info@allontherapeutics.com
www.allontherapeutics.com

The Company is offering equity units and subscription receipts, both priced at $0.25 each for a total of approximately 40,000,000 units.  Each unit consists of one common share and one half of one common share purchase warrant. Each share purchase warrant will entitle the holder to acquire one common share at a price of $0.40 for a period of 60 months from the closing date of the offering. The subscription receipts which are expected to be about half the placement, are required by TSX rules pertaining to insider participation and dilution triggers, convert into identical units subject to shareholders approval which the Company will seek at its June 13 annual meeting. The funds for the subscription receipts will be advanced into escrow pending the shareholders meeting. Neuro Discovery II LP, an insider,  is participating in the placement through the purchase of at least $2.5 million of subscription receipts which will be partially funded by the proceeds from the concurrent repayment of the $2.5 million convertible debenture it subscribed for in February, 2012.

The private placement is subject to all necessary regulatory approvals including the approval of the TSX.  The Company intends to close this placement on or about April 19, 2012.

Bloom Burton & Co., a healthcare-specialized investment banking group based in Canada, is acting as the placement agent for this offering and will receive cash commission and agent’s warrants on a portion of the placement. A news release will be issued on completion disclosing the final placement participation details.

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 pivotal clinical trial in an orphan indication, in progressive supranuclear palsy (PSP), under a Special Protocol Assessment (SPA) with the U.S. Food and Drug Administration (FDA). The trial is fully enrolled and is expected to complete patient dosing and release top-line data by late 2012. This pivotal trial is based upon statistically significant human efficacy demonstrated in patients with amnestic mild cognitive impairment (a precursor to Alzheimer’s disease), 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.

FOR FURTHER INFORMATION PLEASE CONTACT:
Rick Smith
Allon Therapeutics Inc.
Director, Investor Relations
(604) 742-2543
info@allontherapeutics.com
www.allontherapeutics.com

Dr. Alistair Stewart, Allon’s Vice President of Commercial Research, said the Company’s research has shown that its drug candidates are active in preclinical models of peripheral neuropathy, including neurotoxicity and neuropathic pain associated with anti-cancer therapy. “These data lead us to conclude that AL-309 may have the potential to prevent or reduce neurotoxicity when administered in combination with anti-cancer agents known to  cause peripheral neurotoxicity and neuropathic pain,” Stewart said.

Allon previously presented preclinical data at a Society for Neurosciences meeting that showed the activity of AL-309 in chemotherapy-induced neuropathy. AL-309, administered in combination with oxaliplatin (an anti-cancer agent) reduced pain symptoms in a model of peripheral neuropathy.

The Society for Neurosciences, publisher of the Journal of Neuroscience, is an organization of more than 40,000 basic scientists and clinicians who study the brain and nervous system. The society is based in Washington, D.C.

“The granting of this US patent shows Allon’s commitment to building comprehensive intellectual property covering its technology in a variety of settings, including disease prevention,” Stewart said. This new U.S. patent strengthens Allon’s intellectual property estate which includes 15 patent families, 62 issued patents and over 30 pending applications worldwide.

About peripheral neuropathy
Peripheral neuropathy and neuropathic pain can result from a variety of medical conditions, such as diabetes; or from the side-effects of drug treatments, such as cancer chemotherapy. Peripheral neuropathy is caused by damage to peripheral nerves that detect touch and painful stimuli. Symptoms include tingling, hypersensitivity to light touch or painful stimuli and chronic pain. These sensory problems can also proceed to numbness and loss of sensitivity. Common qualities of the painful neuropathy include burning or coldness, “pins and needles” sensations, numbness and itching. Global drug sales for neuropathic pain will reach an estimated $3 billion in 2012.

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 pivotal clinical trial in an orphan indication, in Progressive Supranuclear Palsy (PSP), under a Special Protocol Assessment (SPA) with the U.S. Food and Drug Administration (FDA). The trial is fully enrolled and is expected to complete patient dosing and release top-line data by late 2012. This pivotal trial is based upon statistically significant human efficacy demonstrated in patients with amnestic mild cognitive impairment (a precursor to Alzheimer’s disease), 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.

FOR FURTHER INFORMATION PLEASE CONTACT:
Rick Smith
Allon Therapeutics Inc.
Director, Investor Relations
(604) 742-2543
info@allontherapeutics.com
www.allontherapeutics.com