Spherix subsidiary awarded $469,479 grant under Patient Protection and Affordable Care Act

Nov 4 2010

Spherix Incorporated (Nasdaq: SPEX), an innovator in biotechnology for therapy in diabetes, metabolic syndrome and atherosclerosis; and provider of technical and regulatory consulting services to food, supplement, biotechnology and pharmaceutical companies, today announced that its subsidiary, Biospherics Incorporated, has been awarded $469,479 under HR: 3590 – Patient Protection and Affordable Care Act (the "Act") in immediately available funds.

Claire Kruger, Chief Executive Officer of Spherix, said, "This award will allow us to accelerate the initiation of our triglycerides development program to late 2010 to include in vitro and animal studies leading to appropriate human trials. The incidence of metabolic diseases has reached crisis proportions both in the United States and globally, with estimates of 24 million people with Type 2 diabetes and more than 100 million people with elevated triglycerides in the U.S., approximately 10 million of whom are poorly served by current drug regimens. We are very pleased to receive this non-dilutive capital to further advance our clinical development activities, particularly in triglycerides."

Under the Act, $1 billion was made available to stimulate promising therapeutic research for serious and life-threatening diseases by small biotechnology companies. Applicants were required to submit detailed information demonstrating that their research conformed to the parameters of the Act, along with a summary of qualifying expenditures that formed the basis for the award. Spherix submitted two applications for D-tagatose, including one for its use as a drug candidate in the treatment of diabetes and one for its use as a drug candidate in treating high triglycerides.

Individual companies, regardless of the number of applications filed, were eligible to receive awards equal to 50% of qualifying research and development expenses incurred during 2009 and 2010, up to an aggregate maximum of $5 million per applicant. Spherix applied for $5 million in the aggregate. The total award of $469,479 represents a pro rata reduction applied to all applicants, as the program was significantly over-subscribed. Spherix will receive the grant and recognize the full award during the fourth quarter of 2010.