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PEARL THERAPEUTICS’ DATA FOR ITS COMBINATION BRONCHODILATOR PRODUCT, PT003, SUPPORT THE POTENTIAL FOR IMPROVEMENT IN THE TREATMENT OF PATIENTS WITH COPD

Bronchodilator Combination Product Safety and PK, Monotherapy Bronchodilator Component Efficacy and Safety, and Product Robustness Data presented at ATS

REDWOOD CITY, CALIF., May 18, 2010 – Pearl Therapeutics Inc., a company developing clinically differentiated double and triple combination therapies for the treatment of highly prevalent chronic respiratory diseases, presented results from four studies that provide support for further development of PT003, the company’s fixed dose combination of glycopyrrolate and formoterol delivered via a pressurized hydrofluoroalkane metered dose inhaler (HFA-MDI). The data were presented in a poster session today at the annual International Conference of the American Thoracic Society (ATS) held at the Ernest N. Morial Convention Center in New Orleans. Based on these data, Pearl initiated a Phase 2b clinical trial with PT003 in patients with chronic obstructive pulmonary disease (COPD) in March 2010, and is currently enrolling patients.

“Results from these studies provide a compelling clinical picture of our combination product, PT003, which is comprised of two well characterized bronchodilators formulated as a stable suspension in HFA, and delivered as highly consistent and aerodynamically efficient aerosols via MDIs,” said Dr. Colin Reisner, M.D., executive vice president and chief medical officer of Pearl Therapeutics. “We are encouraged by the promising efficacy and safety data generated to date, and look forward to reporting initial results later this year from our ongoing Phase 2b trial.” Two posters presented by Pearl at the ATS meeting reviewed results of randomized, double-blind, placebo- and active-controlled Phase 2a studies of Pearl’s single-agent bronchodilators, formoterol and glycopyrrolate, delivered via MDI. In both trials, the study drug was compared to placebo as well as to approved agents, with formoterol MDI assessed against Foradil® (12 micrograms delivered via the Aereolizer®) and glycopyrrolate MDI assessed against Spiriva® (18 micrograms delivered via the HandiHaler®). In these trials, all doses of glycopyrrolate MDI and formoterol MDI in Pearl’s formulations were superior to placebo. The 9.6 micrograms dose of formoterol MDI was comparable to Foradil, and both the 72 micrograms and 144 micrograms doses of glycopyrrolate MDI were comparable to Spiriva. The safety profile of all glycopyrrolate MDI and formoterol MDI doses were comparable to placebo and the respective active controls.

Safety and pharmacokinetic data from Pearl’s first-in-human, Phase 1 study of PT003 were also presented. PT003 was shown to be safe and well tolerated after a single dose, with a safety profile similar to that observed with the components administered individually. The administration of drug as a loose or fixed combination resulted in similar pharmacokinetic profiles for glycopyrrolate as well as for formoterol.

Finally, Pearl presented in-vitro results from analyses of its novel porous particle suspension technology to demonstrate reproducibility, aerodynamic delivery and stability of the single agents, glycopyrrolate and formoterol, as well as PT003, when delivered via HFA-MDIs. The data demonstrated that over 50 percent of drug particles in each dose of Pearl’s suspension were consistently in the respirable range, suggesting effective and uniform delivery throughout the lungs. In addition, the formulations of PT003 and the single agents were shown to be stable under a wide range of storage and handling conditions, including temperature cycling from 5 to 40 degrees Celsius (23 to 104 degrees Fahrenheit).

“The Global Initiative for Chronic Obstructive Lung Diseases (GOLD) recommends combining bronchodilators of different pharmacological classes, but combining long acting bronchodilators in one MDI has not previously been possible due to technical challenges in developing consistent and stable formulations,” said Dr. Sarvajna Dwivedi, Ph.D., executive vice president of R&D and co-founder of Pearl Therapeutics. “Our porous particle formulation technology has shown great promise in addressing issues common to inhaled respiratory medicines, including thermal resiliency and delivery uniformity from dose to dose. We are hopeful that PT003 and eventually PT010, Pearl’s triple combination consisting of glycopyrrolate, formoterol and an inhaled corticosteroid, will prove to be significant advancements in the treatment of patients with COPD.”

Full ATS abstracts are now available on the organization’s website at http://conference.thoracic.org.

About Pearl’s Proprietary Porous Particle Technology and HFA-MDI Products

Pearl has overcome fundamental chemistry, manufacturing and control (CMC) issues associated with MDIs via its proprietary porous particle technology. These particles have allowed the formulation of both formoterol and glycopyrrolate as MDIs - in combination and as monotherapies - with highly stable, robust and aerodynamically efficient drug delivery. Pearl has developed a broad portfolio of high-performance combination and monotherapy MDI products, including PT003, PT001 and PT005, utilizing this formulation platform, without the need for complex drug delivery devices or manufacturing processes.

Pearl is also developing PT010, a triple combination product that combines the LAMA and LABA components of PT003 with an inhaled corticosteroid (ICS) for twice-daily administration from an HFA-MDI for the treatment of severe COPD.

About COPD

Chronic obstructive pulmonary disease (COPD) is a preventable and treatable lung disease that is the fourth leading cause of death in the United States. Each year 12 million Americans are diagnosed with COPD and an additional 12 million Americans may have COPD but remain undiagnosed. Research shows that many do not get optimal treatment.

Bronchodilator medications are central to symptom management and are prescribed on an as-needed or regular basis to prevent or reduce symptoms. Long-acting inhaled bronchodilators have been shown to be most effective and convenient. Combining bronchodilators of different pharmacological classes has been shown to improve efficacy and may decrease the risk of side effects compared to increasing the dose of a single bronchodilator. As the course of COPD progresses, regular treatment with inhaled glucocorticosteroids may be added to bronchodilator treatment. Pearl is developing inhaled products that focus on the development of combination products in order to optimize the treatment of COPD.

About Pearl Therapeutics

Pearl Therapeutics is developing combination therapies for the treatment of highly prevalent respiratory diseases, including chronic obstructive pulmonary disease (COPD) and asthma. Leveraging its proprietary particle technology, formulation expertise and unparalleled product development experience, Pearl is rapidly advancing a pipeline of products that offer patients and healthcare professionals therapies that better meet their needs and improve upon the safety and efficacy of existing respiratory therapeutics. Founded in 2006, Pearl Therapeutics is privately held and backed by Clarus Ventures, New Leaf Ventures and 5AM Ventures. For more information, please visit us at http://www.pearltherapeutics.com.

Spiriva® HandiHaler® (tiotropium bromide inhalation powder) is a registered trademark of Boehringer Ingelheim Pharmaceuticals; Foradil® is a registered trademark of Astellas Pharma; and Aerolizer® is a registered trademark of Novartis AG.