BioXell Provides Business Update

Corporate news announcement processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- -------------- * BioXell completes redundancy procedure (Procedura di Mobilità) * New animal data suggest efficacy of BXL1H5 in treatment of chronic pain associated with osteoarthritis * Intensive evaluation of all strategic options ongoing * Cash position amounts to ¤ 36.4 million as of 30 June 2009 Milan, Italy - July 17, 2009 - BioXell S.p.A. (SIX: BXLN) announced today the completion of the redundancy procedure and provided a general update on its business activities. The Company has completed the redundancy procedure (Procedura di Mobilità according to Sec. 4 and 24 of Italian Law 223/1991) which was initiated on April 28, 2009, with the goal to align its internal organization and resources as a result of BioXell's reduced product pipeline and the relating research & development activities. Agreements with the various trade unions have been achieved, resulting in a reduction of the Company's workforce by 14 positions. As a consequence of the restructuring, BioXell's workforce will amount to 20 FTEs. BioXell is also announcing further positive preclinical results for its monoclonal antibody BXL1H5, directed against the high affinity NGF trkA receptor, for the treatment of chronic pain. In collaboration with scientists at the Kennedy Institute in London - a world leading scientific institution in the field of inflammatory pain - the Company has shown that BXL1H5 was more effective than indomethacin in reducing pain in a validated mouse model of chronic pain associated with osteoarthritis (OA). These new data, together with previous strong preclinical results demonstrating efficacy and long-lasting effects in several animal models for both chronic and acute pain, are a strong indication that BioXell's humanized monoclonal antibody is likely to be beneficial for the treatment of pain associated with various pathological conditions. BioXell's Board of Directors and Management are working intensively on the assessment of all strategic options as mandated by the Annual Shareholders' Meeting on April 30, 2009. In connection with this effort, the Company has engaged Mr. Leon Bushara as a strategic advisor to the Board. Mr. Bushara is a senior biotechnology executive with over fifteen years of experience in corporate development and general management. He was Senior Executive Vice President of Corporate & Business Development at Serono, Europe's leading biotechnology company, and most recently Chief Executive Officer of Astex Therapeutics. "It is the intention to conclude our strategic assessment as soon as possible and to publish the call to a Shareholders' Meeting in September 2009", said Niels Ackermann, CEO of BioXell. As of June 30, 2009, BioXell's cash position amounted to ¤ 36.4 million. The cash burn in the second half of 2009 is expected to be significantly lower than in the first six months of 2009 as a result of savings arising from the restructuring program as well as the discontinuation and completion of certain R&D activities. The Company will provide a more detailed financial outlook in connection with the publication of its Interim Report in August. For further information, please contact: BioXell S.p.A. Dynamics Group SA Alvise Sagramoso Christophe Lamps Tel: +39 (0)2 210 49 51 Tel: +41 (0)22 308 6222 Fax: +39 (0)2 210 49 529 Fax: +41 (0)22 308 6236 This press release can be downloaded at About BioXell BioXell S.p.A. (SIX: BXLN) is a listed biopharmaceutical company focused on the discovery and development of drugs that exploit novel mechanisms of action. The Company is currently focusing its efforts on the development of its monoclonal antibody BXL1H5 for the treatment of chronic pain. Following the conclusion of its Vitamin D3 related R&D activities, BioXell is also looking into a number of strategic options in line with the demands of its shareholders. BioXell was founded in 2002 as a spin-out from Roche. In June 2006, BioXell listed its shares on the main segment of the SIX Swiss Exchange. The Company is located in Milan, Italy. Disclaimer This press release does not constitute or form part, or all, of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall part, or all, of these materials or their distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. This press release contains forward-looking statements based on the currently held beliefs and assumptions of the management of BioXell, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of BioXell, or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. BioXell disclaims any obligation to update these forward-looking statements to reflect future events or developments. --- End of Message --- bioXell S.p.A via Olgettina 58 Milan Italy WKN: A0J3MW; ISIN: IT0004069933 ; Listed: Main Market in SIX Swiss Exchange;