LIPOCINE ANNOUNCES FINANCIAL AND OPERATIONAL RESULTS FOR THE THIRD QUARTER OF 2016 SALT LAKE CITY (NOVEMBER 8, 2016) - Lipocine Inc. (NASDAQ: LPCN), a specialty pharmaceutical company, today announc

LIPOCINE ANNOUNCES FINANCIAL AND OPERATIONAL

RESULTS FOR THE THIRD QUARTER OF 2016

SALT LAKE CITY (NOVEMBER 8, 2016) - Lipocine

Inc. (NASDAQ: LPCN), a specialty pharmaceutical company, today announced financial and operational results for the quarter ended

Quarterly and Recent Highlights

"We were pleased to have completed our Post Action meeting

with the FDA, which we believe was very productive and identified a path to bring our NDA for LPCN 1021 into a position for approval,

as we remained committed to the product," said Dr. Mahesh Patel, Chairman, President and CEO of Lipocine. "In addition,

we continue to make substantial progress with both of our other pipeline products, most notably delivering positive clinical data

for LPCN 1111 during the quarter."

Third Quarter 2016 Financial Results

The net loss for the third quarter of 2016 narrowed as compared

with the net loss for the third quarter of 2015. Lipocine reported a net loss of $3.2 million, or $0.18 per diluted share, for

the third quarter of 2016, compared with a net loss of $6.4 million, or $0.35 per diluted share, for the third quarter of 2015.

For the third quarter of 2016, research and development expenses

were $1.5 million, compared with $4.7 million for the third quarter of 2015. The change was primarily due to decreased contract

research organization and consultant costs as well as a $2.3 million fee paid in 2015 to file our NDA for LPCN 1021 with the FDA.

These decreases were partially offset by an increase in validation and commercial batch manufacturing costs for LPCN 1021.

For the third quarter of 2016, general and administrative expenses

were $1.4 million, compared with $1.7 million for the third quarter of 2015. The decrease was primarily due to decreased pre-commercialization

marketing and sales activities related to LPCN 1021partially offset by an increase in personnel costs.

As of September 30, 2016, Lipocine had cash, cash equivalents

and marketable investment securities of $28.8 million, compared with cash and cash equivalents of $44.8 million as of December

Lipocine Inc. is a specialty pharmaceutical company developing

innovative pharmaceutical products for use in men's and women's health using its proprietary drug delivery technologies. Lipocine's

clinical development pipeline includes three development programs LPCN 1021, LPCN 1111 and LPCN 1107. LPCN 1021, a twice-daily

oral testosterone replacement therapy product candidate, was well tolerated and met the primary efficacy end point in Phase 3

testing, which utilized 24-hour pharmacokinetic data for dose adjustments. LPCN 1111, a novel prodrug of testosterone, originated

with and is being developed by Lipocine as a next-generation oral testosterone product with potential for once-daily dosing and

is currently in Phase 2 testing. LPCN 1107, the potentially first oral hydroxyprogesterone caproate product candidate indicated

for the prevention of recurrent preterm birth, has been granted orphan drug designation by the FDA. An End of Phase 2 meeting

with the FDA was recently completed. For more information, please visit www.lipocine.com.

Forward-Looking Statements

This release contains "forward looking statements"

that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include statements

that are not historical facts regarding Lipocine's FDA review process relating to LPCN 1021, the additional clinical trial

needed to validate our dosing regimen and the FDA process with respect to our planned SPA, the possible outcome and timing of such

clinical trial or FDA review process, the path to approvability by the FDA of LPCN 1021, our commitment to bring LPCN 1021 to market,

the results of the Phase 2b clinical study of LPCN 1111, the potential uses and benefits of our product candidates, and our product

development efforts. Investors are cautioned that all such forward-looking statements involve risks and uncertainties, including,

without limitation, the risks that the FDA will not approve LPCN 1021 or any of our other products, risks related to our products,

expected product benefits, clinical and regulatory expectations and plans, regulatory developments and requirements, risks related

to the receipt of a CRL from the FDA for LPCN 1021, the receipt of regulatory approvals, the results and timing of clinical trials,

including the additional clinical trial for LPCN 1021, patient acceptance of Lipocine's products, the manufacturing and commercialization

of Lipocine's products, and other risks detailed in Lipocine's filings with the SEC, including, without limitation,

its Form 10-K and other reports on Forms 8-K and 10-Q, all of which can be obtained on the SEC website at www.sec.gov. Lipocine

assumes no obligation to update or revise publicly any forward-looking statements contained in this release, except as required

Executive Vice President & Chief Financial Officer

Phone: (801) 994-7383

Phone: (443) 213-0506

Condensed Consolidated Statements of Operations and Comprehensive Loss

LIPOCINE INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets