Eloxx Pharmaceuticals Reports Fourth Quarter 2022 Financial and Operating Results and Provides Business Update Three patients now dosed in Phase 2 clinical study evaluating ELX-02 for the treatment of Alport syndrome; en

Eloxx Pharmaceuticals Reports Fourth Quarter

2022 Financial and Operating Results and Provides Business Update

Three patients now dosed in Phase 2 clinical

study evaluating ELX-02 for the treatment of Alport syndrome; encouraging initial reduction in proteinuria has been observed in one patient

Investigational New Drug (IND) application for

ZKN-013 filed for treatment of recessive dystrophic epidermolysis bullosa (RDEB)

WATERTOWN, MA - April 3,

2023 - Eloxx Pharmaceuticals, Inc. (NASDAQ: ELOX), a leader in ribosomal RNA-targeted genetic therapies for rare

diseases, today reported its financial results for the three months ended December 31, 2022 and provided a business update.

"With topline data expected for ELX-02 in Alport syndrome in

the first half of 2023, we believe we are approaching a significant milestone for the company, to advance into our first Phase 3 study,

with the potential to create significant value for both patients and shareholders," said Sumit Aggarwal, President and Chief Executive

Officer of Eloxx. "Positive data from the trial would also be a validation of our potential to treat other rare kidney diseases

and develop small molecule genetic therapy products."

Fourth Quarter 2022 and Subsequent Highlights

Recessive Dystrophic Epidermolysis Bullosa (RDEB) and Junctional

Epidermolysis Bullosa (JEB)

Familial Adenomatous Polyposis (FAP)

Fourth Quarter 2022 Financial Results

For the three months ended December 31, 2022, we incurred a net

loss of $6.3 million, or $2.92 per share, which included $0.6 million in stock-based compensation. For the same period in the prior year,

we incurred a net loss of $12.1 million, or $5.60 per share, which included $1.6 million in stock-based compensation.

R&D expenses were $3.3 million for the three months ended December 31,

2022, which includes $0.3 million in stock-based compensation. For the same period in the prior year, R&D expenses were $7.9 million,

which included $0.6 million of stock-based compensation. The decrease was related to a decrease in clinical trial expenses related primarily

to Cystic Fibrosis Foundation funded activities, and a decrease in salaries and other personnel costs.

General and administrative (G&A) expenses were $2.7 million for

the three months ended December 31, 2022, which includes $0.3 million in stock-based compensation. For the same period in the prior

year, G&A expenses were $3.7 million, which included $1.0 million of stock-based compensation. The decrease was primarily related

to a decrease in salaries and other personal related costs due to reduced headcount and outsourcing certain functions, a decrease in expenses

attributable to professional and consulting fees, and a decrease in stock-based compensation expense.

As of December 31, 2022, we had unrestricted cash and cash equivalents

of $19.2 million. In March 2023, we amended the terms of the Hercules Term Loan Agreement and repaid $7.5 million of the outstanding

principal. The minimum qualified cash balance requirement was reduced to $2.25 million and Eloxx will be required to make principal payments,

plus interest, beginning in September 2023. Assuming that we initiate Phase 3 clinical trial activities in the third quarter of 2023,

our expectation is that our current cash position and assuming maintaining compliance with our debt covenants, will be sufficient to fund

our operations into the third quarter of 2023.

About Eloxx Pharmaceuticals

Eloxx Pharmaceuticals, Inc. is engaged

in the science of ribosome modulation, leveraging its innovative TURBO-ZMTM chemistry technology platform in an effort to develop

novel Ribosome Modulating Agents (RMAs) and its library of Eukaryotic Ribosome Selective Glycosides (ERSGs). Eloxx's lead investigational

product candidate, ELX-02, is a small molecule drug candidate designed to restore production of full-length functional proteins. The U.S.

Food and Drug Administration (FDA) has granted Fast Track designation for ELX-02 for the treatment of CF patients with nonsense mutations.

In addition, ELX-02 has also been granted Orphan Drug Designation for the treatment of CF patients with nonsense mutations by the FDA

and orphan medicinal product designation by the European Commission. ELX-02 is in clinical development, focusing on cystic fibrosis (US

Trial NCT04135495, EU/IL Trial NCT04126473). Eloxx also has preclinical programs focused on select rare diseases, including inherited

diseases, cancer caused by nonsense mutations, kidney diseases, including autosomal dominant polycystic kidney disease, as well as rare

ocular genetic disorders.

For more information,

please visit www.eloxxpharma.com.

Forward-looking Statements

release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements

other than statements of present and historical facts contained in this press release, including without limitation, statements regarding

our cash runway and our ability to comply with the covenants in our debt agreement, the expected timing of and results from trials of

our product candidates and the potential of our product candidate to treat nonsense mutations are forward-looking statements. Forward-looking

statements can be identified by the words "aim," "may," "will," "would," "should,"

"expect," "explore," "plan," "anticipate," "could," "intend,"

"target," "project," "contemplate," "believe," "estimate," "predict,"

"potential," "seeks," or "continue" or the negative of these terms similar expressions, although

not all forward-looking statements contain these words. Forward-looking statements are based on management's current plans, estimates,

assumptions and projections based on information currently available to us. Forward-looking statements are subject to known and unknown

risks, uncertainties and assumptions, and actual results or outcomes may differ materially from those expressed or implied in the forward-looking

statements due to various important factors, including, but not limited to: our ability to progress any product candidates in preclinical

or clinical trials; the uncertainty of clinical trial results and the fact that positive results from preclinical studies are not always

indicative of positive clinical results; the scope, rate and progress of our preclinical studies and clinical trials and other research

and development activities; the competition for patient enrollment from drug candidates in development; the impact of the global COVID-19

pandemic on our clinical trials, operations, vendors, suppliers, and employees; our ability to obtain the capital necessary to fund our

operations; the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights; our ability

to obtain financial in the future through product licensing, public or private equity or debt financing or otherwise; our ability to

meet the continued listing requirements of the Nasdaq Capital Market; general business conditions, regulatory environment, competition

and market for our products; and business ability and judgment of personnel, and the availability of qualified personnel and other important

factors discussed under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31,

2022, as any such factors may be updated from time to time in our other filings with the SEC, accessible on the SEC's website at

www.sec.gov and the "Financials & Filings" page of our website at https://investors.eloxxpharma.com/financials-filings.

All forward-looking statements

speak only as of the date of this press release and, except as required by applicable law, we have no obligation to update or revise any

forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.

ELOXX PHARMACEUTICALS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share data)

ELOXX PHARMACEUTICALS, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share and per share data)