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Allon files preliminary shelf prospectus

VANCOUVER, Nov. 22, 2012 /PRNewswire/ - Allon Therapeutics Inc. (TSX: NPC) has filed a preliminary short form base shelf prospectus (the "Shelf Prospectus") with the securities commissions in each province and territory of Canada (other than Quebec).

Allon's pivotal phase 2/3 clinical trial is evaluating lead neuroprotective drug candidate davunetide as a potential treatment for progressive supranuclear palsy (PSP), a rapidly progressing and fatal degenerative brain disease. The Company is on track to release top-line data from the clinical trial in the second half of December 2012.

Matthew J. Carlyle, Allon's Chief Financial Officer, said positive data from the trial could position Allon to seek regulatory approval in the PSP market, estimated to be $700-million.

"We believe that it is important to maintain corporate finance flexibility," Carlyle said. "The prospectus is intended to help facilitate Allon's ability to efficiently access the capital markets, including in the event that the davunetide clinical trial is successful."

The Shelf Prospectus, when made final, will enable the Company to offer up to $50 million of common shares, common share purchase warrants, units consisting of common shares and whole or partial common share purchase warrants, preferred shares, debt securities and/or subscription receipts entitling the holder to acquire, upon the satisfaction of certain release conditions and for no additional consideration, common shares, warrants, units or preferred shares during the 25-month period that the Shelf Prospectus, including any amendments thereto, remains effective. Securities may be offered separately or together, in amounts, at prices and on terms to be determined based on market conditions at the time of sale and set forth in an accompanying prospectus supplement.

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 complete and on track to analyse the data and release top-line results during the second half of December 2012. This pivotal trial is based upon statistically significant human efficacy demonstrated in patients with amnestic mild cognitive impairment, 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.

Carrie Christenson
Allon Therapeutics Inc.
(604) 736-0634
info@allontherapeutics.com
www.allontherapeutics.com

SOURCE Allon Therapeutics Inc.

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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