AlgoRx Pharmaceuticals , Inc.

We are an emerging pharmaceutical company focused on developing and commercializing a diversified portfolio of pharmaceutical product candidates to address pain, a large and under-served market. We have three product candidates that we are developing in four clinical programs and one preclinical program. Two of our product candidates are in late-stage clinical development. Our management team has extensive past experience developing and commercializing products to treat pain. In order to create a balanced pipeline, we have selectively in-licensed or acquired product candidates at various stages of development that address different segments of the pain market. ALGRX 4975 (capsaicin for injection and capsaicin gel for intraoperative use) is being developed in three programs for pain: severe postsurgical pain, post-trauma neuropathic pain and musculoskeletal pain (including osteoarthritis and tendonitis). In these programs, we have completed one phase I clinical trial and two phase II clinical trials. Each of the phase II clinical trials yielded statistically significant improvements in pain scores and has provided us with favorable safety data. We are continuing to evaluate ALGRX 4975 in six phase II clinical trials across the three programs. ALGRX 3268, our most advanced product candidate, is a powder formulation of the local anesthetic lidocaine delivered into the skin using our proprietary needle-free dispenser. We are developing ALGRX 3268 to reduce the pain associated with needle-sticks from venipuncture (blood draws) or intravenous line insertions in children. We have recently commenced one of two phase III clinical trials for ALGRX 3268. We recently in-licensed a third product candidate, ALGRX 1207, a new molecular entity in a new class of anesthetics that is undergoing preclinical development as a topical local anesthetic. We expect to file an investigational new drug (IND) application for ALGRX 1207 with the U.S. Food and Drug Administration (FDA) in the second half of 2005.