IRS awards RXi Pharmaceuticals four Therapeutic Discovery Project grants

RXi Pharmaceuticals Corporation (Nasdaq: RXII), a recognized leader in RNAi-based therapeutic discovery and development, today announced that it was awarded four Therapeutic Discovery Project (TDP) grants, totaling $977,917, by the United States Internal Revenue Service (IRS) as part of the Patient Protection and Affordable Care Act of 2010.

"This unique program provides much needed financial support for innovative biotechnology research and development that is critical for the advancement of breakthrough therapies," said Noah D. Beerman, President and Chief Executive Officer of RXi Pharmaceuticals. "This funding provides RXi with additional resources for the development of novel RNAi therapeutics in a number of important disease areas using our comprehensive RNAi platform. We are honored to have received these awards and look forward to continuing to advance our therapeutic pipeline."

RXi submitted and received funding for four Therapeutic Discovery Projects, which were reviewed by the IRS and the Department of Health and Human Services (HHS). Allocation of the award took into consideration which projects show the greatest potential to create and sustain high-quality, high-paying U.S. jobs and to advance U.S. competitiveness in life, biological and medical sciences.

RXi's Therapeutic Discovery Projects were entitled:

1. Development of self-delivering RNA Interference (RNAi) therapeutic for fibrotic disease
2. Self-Delivering RNA Interference Therapeutic for Age-Related Macular Degeneration (AMD)
3. Self-Delivering RNA Interference Therapeutic for ALS (Lou Gehrig's Disease)
4. Oral Delivery of Glucose Encapsulated siRNAs for Rheumatoid Arthritis (RA)

Each of the four grants was approved for $244,479.25 in funding. $792,234.59 of the tax free grant will be received by the end of 2010, and the remaining $185,682.41 will be received in January 2011.

RNA interference (RNAi) is a gene-silencing technique that has the potential to block disease causing proteins before they are produced and to selectively inhibit the activity of any human gene.