SAN DIEGO, November 3, 2010 — Phage Pharmaceuticals, Inc., a private San Diego-based clinical-stage specialty biopharmaceutical developer and manufacturer of therapeutic proteins, announced today that it has been awarded a grant of $244,479.25 under the Qualifying Therapeutic Discovery Project Program.

Under the Patient Protection and Affordable Care Act, cash grants were recently awarded to Qualifying Therapeutic Discovery Projects that showed significant potential to produce new and cost-saving therapies, support job growth, and increase U.S. competitiveness in life, biological, and medical sciences. Grants were awarded through a competitive application process administered by the U.S. Departments of Health and Human Services and the Treasury.

“We are pleased to have been awarded this grant,” commented Robert J. Beckman, CEO of Phage Pharmaceuticals. “We believe that the selection of our program for this grant is a reflection of the potential of our proposed application for Fibroblast Growth Factor-1 (“FGF-1″) produced at our government-certified cGMP manufacturing facility using our proprietary manufacturing method.”

About Phage Pharmaceuticals

Phage Pharmaceuticals makes use of a proprietary production method that improves upon well established approaches for the manufacture of targeted proteins and results in the production of properly-folded therapeutic proteins at high yields. The production method results in lower manufacturing costs with fewer waste by-products and impurities compared with current conventional methods used in the manufacture of similar therapeutics.

Phage Pharmaceuticals has two product candidates in clinical development, Human Growth Hormone (“hGH”) and FGF-1. Both product candidates have open, active INDs with the FDA. Phase I clinical trials of the company’s hGH drug candidate have been completed successfully, and the company is positioned to begin further clinical development of hGH. FGF-1 manufactured at Phage Pharmaceuticals’ facilities has been assessed successfully in a Phase I clinical trial for treatment of wounds and was shown to be safe and well tolerated. Other preparations of FGF-1 manufactured at Phage Pharmaceuticals’ facilities were assessed in Phase I safety and Phage II efficacy trials for the treatment of severe Coronary Heart Disease. Phage Pharmaceuticals has other therapeutic proteins in various stages of pre-clinical development. Among the programs are those involving Beta Interferon, G-CSF, Parathyroid Hormone, EGF, and pegylated versions of Interferon Alpha, hGH, C-CSF, Beta Interferon, EPO, Coagulation Factor IX, FGF-1, Interferon Gamma, Interleukin-12, and Insulin-Like Growth Factor-1.

Contact

Philip N. Sussman, Chief Business Officer, 858-427-9125, info@phagepharma.com.