EpiCept Transfers Ceplene Responsibilities in European Union and Sells License Rights to Meda

  EpiCept Transfers Ceplene Responsibilities in European Union and Sells
  License Rights to Meda


Business Wire

TARRYTOWN, N.Y. -- June 19, 2012

Regulatory News:

EpiCept Corporation (Nasdaq OMX Stockholm Exchange and OTCQX: EPCT) today
announced that it has sold all of its rights to Ceplene® in the territories
previously licensed to Meda AB, and a portion of its remaining Ceplene®
inventory, to Meda for approximately $2.6 million in cash and the assumption
of EpiCept's ongoing responsibilities related to the manufacture and
maintenance of the marketing authorization of Ceplene® in the European Union.
The cash received from this transaction together with the savings from future
expenses, after making a partial prepayment on EpiCept's existing term loan
with MidCap Financial LLC of approximately $0.8 million, will enable EpiCept
to operate into the fourth quarter 2012 without further financing.

Under the terms of the transaction, Meda has as of the closing date assumed
responsibility for the manufacturing of Ceplene® in the territories previously
licensed to Meda and will absorb all of the remaining expenses relating to the
post-approval clinical study of Ceplene^® that is required by the European
Medicines Agency (EMA). EpiCept has also agreed to relinquish all future
milestone payments and royalty on future sales of Ceplene® by Meda. In
conjunction with the closing of this transaction EpiCept will close its
EpiCept GmbH facility in Munich, Germany.

Jack Talley, President and CEO of EpiCept, commented, “This transaction is
important to EpiCept because it strengthens our liquidity position, saves
capital by eliminating our ongoing financial commitment to Ceplene® in Europe,
and allows us to focus resources on our other products in development, notably
AmiKet™. We are pleased that we have been able to complete this transaction
and look forward to working closely with Meda in the transitioning efforts.”

EpiCept maintains full ownership of Ceplene® in those countries not previously
licensed to Meda, including all of North and South America. The Company’s
agreement with Megapharm Ltd. for the sales of Ceplene® in Israel is not a
part of the transaction.

SunTrust Robinson Humphrey, Inc. acted as financial adviser to EpiCept in this
transaction. EpiCept engaged SunTrust Robinson Humphrey, Inc. in January 2012
to assist in exploring strategic alternatives to maximize the commercial
opportunity of AmiKet™ for the treatment of CIPN following taxane-based
therapy. The sale of licensed Ceplene® rights to Meda provides additional
liquidity to the Company’s operations and may enhance EpiCept’s ability to
finalize a transaction with potential acquirers or with investors or licensors
of AmiKet™.

About EpiCept Corporation

EpiCept is focused on the development and commercialization of pharmaceutical
products for the treatment of pain and cancer. The Company's pain portfolio
includes AmiKet™, a prescription topical analgesic cream in late-stage
clinical development designed to provide effective long-term relief of pain
associated with peripheral neuropathies. The Company's lead oncology product
is Ceplene^®, which has been granted full marketing authorization by the
European Commission for the remission maintenance and prevention of relapse in
adult patients with Acute Myeloid Leukemia (AML) in first remission. The
Company has other oncology drug candidates currently in clinical development
that were discovered using in-house technology and have been shown to act as
vascular disruption agents in a variety of solid tumors.

Forward-Looking Statements

This news release and any oral statements made with respect to the information
contained in this news release contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include statements which express plans,
anticipation, intent, contingency, goals, targets, future development and are
otherwise not statements of historical fact. These statements are based on our
current expectations and are subject to risks and uncertainties that could
cause actual results or developments to be materially different from
historical results or from any future results expressed or implied by such
forward-looking statements. Factors that may cause actual results or
developments to differ materially include: the risk that Ceplene^® will not
receive regulatory approval or marketing authorization in the United States or
Canada, the risk that Ceplene^® will not achieve significant commercial
success, the risk that any required post-approval clinical study for Ceplene^®
will not be successful, the risk that we will not be able to maintain our
final regulatory approval or marketing authorization for Ceplene^®, the risks
associated with the adequacy of our existing cash resources and our ability to
continue as a going concern, the risks associated with our ability to continue
to meet our obligations under our existing debt agreements, the risk that
Azixa™ will not receive regulatory approval or achieve significant commercial
success, the risk that we will not receive any significant payments under our
agreement with Myrexis, the risk that clinical trials for AmiKet™ or
crolibulin^TM will not be successful, the risk that AmiKet™ or crolibulin^TM
will not receive regulatory approval or achieve significant commercial
success, the risk that we will not be able to find a partner to help conduct
the Phase III trials for AmiKet™ on attractive terms, a timely basis or at
all, the risk that our other product candidates that appeared promising in
early research and clinical trials do not demonstrate safety and/or efficacy
in larger-scale or later-stage clinical trials, the risk that we will not
obtain approval to market any of our product candidates, the risks associated
with dependence upon key personnel, the risks associated with reliance on
collaborative partners and others for further clinical trials, development,
manufacturing and commercialization of our product candidates; the cost,
delays and uncertainties associated with our scientific research, product
development, clinical trials and regulatory approval process; our history of
operating losses since our inception; the highly competitive nature of our
business; risks associated with litigation; and risks associated with our
ability to protect our intellectual property. These factors and other material
risks are more fully discussed in our periodic reports, including our reports
on Forms 8-K, 10-Q and 10-K and other filings with the U.S. Securities and
Exchange Commission. You are urged to carefully review and consider the
disclosures found in our filings which are available at www.sec.gov or at
www.epicept.com. You are cautioned not to place undue reliance on any
forward-looking statements, any of which could turn out to be wrong due to
inaccurate assumptions, unknown risks or uncertainties or other risk factors.

*Azixa is a registered trademark of Myrexis, Inc.



EpiCept Corporation:
Robert W. Cook, 914-606-3500
Feinstein Kean Healthcare
Greg Kelley, 617-577-8110
Kim Sutton Golodetz, 212-838-3777
Bruce Voss, 310-691-7100
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