Eloxx Pharmaceuticals Reports Fourth Quarter and Full Year 2019 Financial and Operating Results and Provides Business Update Topline data from Phase 2 Cystic Fibrosis clinical trials for ELX-02 in H1 2020 Realignment str

Eloxx Pharmaceuticals

Reports Fourth Quarter and Full Year 2019 Financial and Operating Results and Provides Business Update

Topline data from Phase 2 Cystic Fibrosis

clinical trials for ELX-02 in H1 2020

Realignment strengthens commitment to

Cystic Fibrosis and strategic flexibility by extending cash runway through the end of 2021

Strong balance sheet

with $56.3 million in cash and cash equivalents as of December 31, 2019

Company to host webcast

and conference call today, Thursday, March 5, 2020, at 4:30 pm ET

MA. - March 5, 2020 - Eloxx Pharmaceuticals, Inc.,

(NASDAQ: ELOX) a clinical-stage biopharmaceutical company dedicated to the discovery and development of novel therapeutics

to treat cystic fibrosis and other diseases caused by nonsense mutations limiting production of functional proteins, today reported

its financial results for the three and twelve months ended December 31, 2019 and provided a business update.

"I am highly confident that we

have the right team and resources in place to achieve our clinical and portfolio objectives. Our highest priority is to complete

enrollment of our Phase 2 clinical trials for Cystic Fibrosis and report topline data in the first half of this year," said

Dr. Gregory Williams, Chief Executive Officer of Eloxx Pharmaceuticals. "We believe that proof of concept data in cystic

fibrosis will be a substantial value inflection point for the Company. Our recent organizational realignment extends our cash runway

through the end of 2021 and strengthens our strategic flexibility."

Organizational Realignment

Cystic Fibrosis Program Updates

Additional Development Programs

ELX-02 is an investigational agent not approved by any regulatory

agency for therapeutic use which is currently in Phase 2 clinical trials in cystic fibrosis and cystinosis.

Fourth Quarter 2019 Financial Results

As of December 31, 2019, we had cash, cash

equivalents and marketable securities of $56.3 million, which we expect will be sufficient to fund our operations through the end

of 2021, well beyond topline data from our Phase 2 clinical trials in cystic fibrosis.

For the three months ended December 31,

2019, we incurred a loss of $11.6 million or $0.29 per share, which includes $2.7 million non-cash expense related to stock-based

compensation. For the same period in the prior year, we incurred a net loss of $14.0 million, or $0.40 per share.

Our research and development expenses were $5.7 million for

the three months ended December 31, 2019 which includes $0.5 million non-cash expense related to stock-based compensation. For

the same period in the prior year, R&D expenses were $6.5 million. The quarter to quarter decrease in R&D expenditures

was driven by the timing of significant activities in our Phase 2 clinical trials, along with pre-clinical and CMC costs, and lower

non-cash stock compensation.

Our general and administrative expenses were $5.8 million for

the three months ended December 31, 2019 which includes $2.2 million in non-cash expense related to stock-based compensation. For

the same period in the prior year, G&A expenses were $7.6 million. The change was primarily driven by decreases in professional

service fees and non-cash stock compensation expense.

Full Year 2019 Financial Results

For the twelve months ended December 31,

2019, we incurred a loss of $50.9 million or $1.34 per share, which includes $11.3 million in non-cash expense related to stock-based

compensation. For the prior year, we incurred a net loss of $47.2 million, or $1.45 per share.

Our research and development expenses were $25.8 million for

the twelve months ended December 31, 2019 which includes $2.5 million in non-cash expense related to stock-based compensation.

For the same period in the prior year, R&D expenses were $20.5 million. The year over year increase in R&D expenditures

was driven primarily by growth in salaries and other personnel costs and increases in clinical operations costs related to our

Phase 2 clinical trials.

Our general and administrative expenses were $24.7 million for

the twelve months ended December 31, 2019 which includes $8.9 million in non-cash stock-based compensation. For the prior year,

G&A expenses were $26.5 million. The year over year decline in our G&A expenses was primarily related to lower non-cash

expense related to stock-based compensation and a decrease in infrastructure-related costs offset by increases in salaries and

other personnel costs.

Conference Call and Webcast Information:

Date: Thursday, March 5, 2020

Domestic Dial-in Number: (866) 913-8546

International Dial-in Number: (210) 874-7715

Conference ID: 3149964

Webcast: accessible from the Company's website at www.eloxxpharma.com under Events

and Presentations or with this link: https://edge.media-server.com/mmc/p/8d96keug

About Eloxx Pharmaceuticals

Eloxx Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical

company developing novel RNA-modulating drug candidates (designed to be eukaryotic ribosomal selective glycosides) that are formulated

to treat rare and ultra-rare premature stop codon diseases. Premature stop codons are point mutations that disrupt protein synthesis

from messenger RNA. As a consequence, patients with premature stop codon diseases have reduced or eliminated protein production

from the mutation bearing allele accounting for some of the most severe phenotypes in these genetic diseases. These premature stop

codons have been identified in over 1,800 rare and ultra-rare diseases. Read-through therapeutic development is focused on

extending mRNA half-life and increasing protein synthesis by enabling the cytoplasmic ribosome to read through premature stop codons

to produce full-length proteins. Eloxx's lead investigational product candidate, ELX-02, is a small molecule drug candidate

designed to restore production of full-length functional proteins. ELX-02 is in the early stages of clinical development focusing

on cystic fibrosis and cystinosis. ELX-02 is an investigational drug that has not been approved by any global regulatory body.

Eloxx's preclinical candidate pool consists of a library of novel drug candidates designed to be eukaryotic ribosomal selective

glycosides identified based on read-through potential. Eloxx recently announced a new program focused on rare ocular genetic disorders.

Eloxx is headquartered in Waltham, MA, with operations in Rehovot, Israel. For more information, please visit www.eloxxpharma.com.

Forward-Looking Statements

contains forward-looking statements, which are generally statements that are not historical facts. Forward-looking statements can

be identified by the words "expects," "anticipates," "believes," "intends," "estimates,"

"plans," "will," "outlook" and similar expressions. Forward-looking statements are based on management's

current plans, estimates, assumptions and projections, and speak only as of the date they are made. We undertake no obligation

to update any forward-looking statement in light of new information or future events, except as otherwise required by law. Forward-looking

statements involve inherent risks and uncertainties, most of which are difficult to predict and are generally beyond our control.

Actual results or outcomes may differ materially from those implied by the forward-looking statements as a result of the impact

of a number of factors, including: the development of the Company's read-through technology; the approval of the Company's

patent applications; the Company's ability to successfully defend its intellectual property or obtain necessary licenses

at a cost acceptable to the Company, if at all; the successful implementation of the Company's research and development programs

and collaborations; the Company's ability to obtain applicable regulatory approvals for its current and future product candidates;

the acceptance by the market of the Company's products should they receive regulatory approval; the timing and success of

the Company's preliminary studies, preclinical research, clinical trials, and related regulatory filings; the ability of

the Company to consummate additional financings as needed; as well as those discussed in more detail in our Annual Report on Form

10-K and our other reports filed with the Securities and Exchange Commission.