Aytu BioScience Enters $2 Billion Testosterone Replacement Market with Acquisition of U.S. Commercial Rights to Natesto Secures Long-term, Exclusive License from Acerus Pharmaceuticals Corporation Licenses Novel, FDA-App

Aytu BioScience Enters $2 Billion Testosterone

Replacement Market with Acquisition of U.S. Commercial Rights to Natesto

Secures Long-term, Exclusive License

from Acerus Pharmaceuticals Corporation

Licenses Novel, FDA-Approved Nasal Gel

Testosterone Product;

Planned for July 2016

Englewood, CO - April 25, 2016 - Aytu BioScience,

Inc. (OTCQX: AYTU), a specialty pharmaceutical company focused on commercializing novel products in the field of urology today

announced the exclusive licensing of its third commercial-stage urology product in just 11 months, with the execution of a long-term,

exclusive license agreement with an affiliate of Acerus Pharmaceuticals Corporation (TSX: ASP) for the U.S. commercial rights to

Natesto (testosterone) Nasal Gel. Natesto is the first and only nasal formulation of testosterone approved by the U.S. Food

and Drug Administration (FDA) as a replacement therapy for men diagnosed with hypogonadism (low testosterone, or "Low T").

Aytu anticipates further expanding its current urology-centric sales force and initiating its promotion of Natesto into the $2

billion U.S. testosterone replacement market in July 2016.

The profile of Natesto is unique among currently marketed testosterone

products, offering convenient and simple administration via a nasal gel applicator within seconds, but without the risk of testosterone

transference associated with other topical products such as AndroGel and Axiron , which carry "black box"

warnings on their product labels. Natesto was approved by the FDA in May 2014 and is protected by multiple Orange Book-listed patents.

Josh Disbrow, Chief Executive Officer of Aytu BioScience, stated,

"Securing the rights to commercialize Natesto in the United States represents Aytu's most significant transaction to

date. This partnership further expands on our strategy to build a complementary portfolio of unique urology assets, and we expect

Natesto to be a key value driver for Aytu going forward. Approximately thirteen million men in the U.S. have a form of Low T, and

we believe that Natesto has significant potential to satisfy the needs of many men that are not satisfied with current Low T treatment

options. We look forward to building a strong and long-lasting relationship with Acerus based on successfully establishing Natesto

as an important treatment option in the U.S. Our current sales force is already preparing to engage prescribers given our focus

on urologists and the key prescribers of testosterone replacement therapies."

Tom Rossi, President and Chief Executive Officer of Acerus,

stated, "We are very pleased to announce Aytu as our U.S. commercial partner for Natesto. Management's proven track

record of launching and scaling successful commercial operations within the specialty pharmaceutical industry, and the fact that

Aytu is focused on building a significant presence in men's health, were instrumental in reaching this decision. We look

forward to strengthening our relationship with Aytu in support of the planned U.S. launch of Natesto, and to supporting its growth

in this important therapeutic market."

Under the terms of the exclusive license, Aytu will pay Acerus

a total of $2 million upfront, and will additionally purchase of $2 million of Acerus common stock. Additional payments totaling

an aggregate of $6 million payable in fiscal 2017 will also be made. Acerus will also receive a supply price to manufacture the

product calculated as a percentage of the U.S. net sales of Natesto, throughout the term of the agreement, which will last until

at least February 2024, with the maximum milestone payable upon achievement of $125 million in annual U.S. net sales.

About Aytu BioScience, Inc.

Aytu BioScience is a commercial-stage specialty pharmaceutical

company focused on global commercialization of novel products in the field of urology. Aytu's current portfolio of commercial

and late-stage urology products addresses prostate cancer, urinary tract infections, male infertility and male sexual dysfunction,

and the company plans to expand into other urological indications for which there are significant medical needs. The company currently

markets ProstaScint (capromab pendetide), the only radio-labeled monoclonal antibody that targets prostate specific membrane

antigen (PSMA), a protein highly expressed by prostate cancer cells. ProstaScint is FDA-approved as an imaging agent for use in

diagnosed, high-risk prostate cancer patients and patients with

recurrent prostate cancer. Aytu also markets Primsol (trimethoprim hydrochloride) - the only FDA-approved trimethoprim-only

oral solution for urinary tract infections. Additionally, Aytu markets the CE Marked MiOXSYS System outside the U.S. and

is conducting U.S.-based clinical trials, following which the company plans to seek 510k de novo medical device clearance. The

MiOXSYS System is a novel, rapid semen analysis system with the potential to become a standard of care in the diagnosis and management

of male infertility. MiOXSYS is the only rapid test for assessing oxidative stress in semen and seminal plasma, a leading contributor

of idiopathic male infertility. Aytu's strategy is to continue building its portfolio of revenue-generating urology products

and late-stage development assets, leveraging its commercial team and expertise to further build those brands within well-established

Acerus Pharmaceuticals Corporation is a Canadian pharmaceutical

company focused on the development, manufacture, marketing and distribution of innovative, branded products that improve the patient

Acerus markets ESTRACE in Canada, a product indicated for

the symptomatic relief of menopausal symptoms. NATESTO , a product utilizing an Acerus licensed nasal gel technology, is the

first and only testosterone nasal gel approved in Canada, and available in the United States for replacement therapy in adult males

diagnosed with hypogonadism. GYNOFLOR , a product licensed to Acerus in Canada by Medinova AG, is an ultra-low dose vaginal

estrogen therapy with the addition of lactobacillus, for the treatment of atrophic vaginitis, certain vaginal infections and to

restore a healthy vaginal environment. TEFINA , a use as required' nasal testosterone gel, is an Acerus drug

development candidate aimed at addressing a significant unmet need for women with female sexual dysfunction.

Natesto (testosterone) Nasal Gel is an androgen indicated for

replacement therapy in adult males for conditions associated with a deficiency or absence of endogenous testosterone:

Primary hypogonadism (congenital or acquired): testicular failure

due to conditions such as cryptorchidism, bilateral torsion, orchitis, vanishing testis syndrome, orchiectomy, Klinefelter's

syndrome, chemotherapy, or toxic damage from alcohol or heavy metals. These men usually have low serum testosterone concentrations

and gonadotropins (follicle-stimulating hormone [FSH] and luteinizing hormone [LH]) above the normal range; and

Hypogonadotropic hypogonadism (congenital or acquired): gonadotropin

or luteinizing hormone-releasing hormone (LHRH) deficiency or pituitary-hypothalamic injury from tumors, trauma, or radiation.

These men have low serum testosterone concentrations but have gonadotropins in the normal or low range.

Safety and efficacy of Natesto in men with "age-related

hypogonadism" have not been established.

Safety and efficacy of Natesto in males <18 years old have

not been established.

IMPORTANT SAFETY INFORMATION FOR NATESTO

Natesto is contraindicated in men with carcinoma of the breast

or known or suspected prostate cancer and in women who are, or may become, pregnant or who are breastfeeding. Natesto may cause

fetal harm when administered to a pregnant woman and serious adverse reactions in nursing infants.

Nasal adverse reactions, including nasopharyngitis, rhinorrhea,

epistaxis, nasal discomfort, and nasal scabbing, were reported in the clinical trial experience with Natesto. Patients should be

instructed to report any nasal symptoms or signs to their healthcare professional. In that circumstance, healthcare professionals

should determine whether further evaluation or discontinuation of Natesto is appropriate.

Due to lack of clinical data on safety or efficacy, Natesto

is not recommended for use in patients with a history of nasal disorders, nasal or sinus surgery, nasal fracture within the previous

6 months or nasal fracture that caused a deviated anterior nasal septum, mucosal inflammatory disorders (e.g., Sjogren's

syndrome), and sinus disease.

Monitor patients with benign prostatic hyperplasia (BPH) for

worsening of signs and symptoms of BPH. Patients treated with androgens may be at increased risk for prostate cancer. Evaluation

of patients for prostate cancer prior to initiating and during treatment with androgens is recommended.

Increases in hematocrit, reflective of increases in red blood

cell mass, may require discontinuation of Natesto.

Venous thromboembolic events, including deep vein thrombosis

(DVT) and pulmonary embolism (PE), have been reported in patients using testosterone products. Patients with signs and symptoms

consistent with DVT or PE need evaluation and may require discontinuation of treatment with Natesto.

Some postmarketing studies have shown an increased risk of major

adverse cardiovascular events (MACE) with use of testosterone replacement therapy. Patients should be informed of this possible

risk when deciding to use or to continue to use Natesto.

Due to lack of controlled studies in women and potential virilizing

effects, Natesto is not indicated for use in women.