Jeffrey Goldberger / Yemi Rose KCSA Strategic Communications 212-896-1249 / 212-896-1233 jgoldberger@kcsa.com / yrose@kcsa.com Constantine Theodoropulos Base Pair Communications 617-401-3116 constantine@basepai

Pharmaceuticals and Teva Pharmaceutical Industries Close on a License

Rockville, Md, Sept. 21, 2009

- Rexahn Pharmaceuticals, Inc. (NYSE Amex: RNN), a clinical stage pharmaceutical

company commercializing potential best in class oncology and central nervous

system (CNS) therapeutics, today announced that it has closed on its previously

announced licensing and stock purchase agreements with Teva Pharmaceutical

Industries Limited (NASDAQ:TEVA), a top 20 pharmaceutical company, for the

development of its novel anti-cancer compound, RX-3117. RX-3117 is a

small molecule, new chemical entity (NCE), nucleoside compound that has an

anti-metabolite mechanism of action, and has therapeutic potential in a broad

range of cancers including colon, lung and pancreatic cancer.

companies reached an agreement with respect to the commercialization and

development of RX-3117, under which on September 21, 2009 Teva

purchased 3,102,837 shares of Rexahn's common stock for $3.5

million. Rexahn will be eligible to receive additional development,

regulatory and sales milestone payments. In addition, Rexahn will be

eligible to receive royalties on net sales worldwide. Under the terms of the

deal, Teva may also make an additional equity investment in Rexahn within the

is a small molecule, new chemical entity (NCE), nucleoside compound that

inhibits DNA methyltransferase, a cyclin-dependent kinase, and DNA synthesis.

Potential indications of RX-3117 are solid tumors including colon, lung and

pancreatic cancers. RX-3117 has demonstrated its ability to overcome cancer drug

resistance in cancer cells, in particular, gemcitabine-resistance in the human

lung cancer cell. The US patent issued for RX-3117 claims composition

of matter, synthesis, and methods (2008).

Rexahn Pharmaceuticals, Inc.

Pharmaceuticals is a clinical stage pharmaceutical company dedicated to

commercializing first in class and market leading therapeutics for cancer,

disorders of the CNS, sexual dysfunction and other unmet medical

needs. Rexahn currently has three drug candidates in Phase II

clinical trials - Archexin , Serdaxin , and Zoraxel - all potential best in

class therapeutics, and a robust pipeline of preclinical compounds to treat

multiple cancers and CNS disorders. Rexahn also has key R&D

programs in cancer nano-medicines and multi-target aimed ligands drug discovery

technologies. For more information, please visit

press release contains forward-looking statements. Rexahn's actual results may

differ materially from anticipated results, and expectations expressed in these

forward-looking statements, as a result of certain risks and uncertainties,

including Rexahn's lack of profitability, and the need for additional capital to

operate its business to develop its product candidates; the risk that Rexahn's

development efforts relating to its product candidates may not be successful;

the possibility of being unable to obtain regulatory approval of Rexahn's

product candidates; the risk that the results of clinical trials may not be

completed on time or support Rexahn's claims; demand for and market acceptance

of Rexahn's drug candidates; Rexahn's reliance on third party researchers and

manufacturers to develop its product candidates; Rexahn's ability to develop and

obtain protection of its intellectual property; and other risk factors set forth

from time to time in our filings with the Securities and Exchange

Commission. Rexahn assumes no obligation to update these

forward-looking statements.