Rexahn Pharmaceuticals, Inc, a leader in development of innovative therapeutics for life-threatening and life-debilitating diseases, has signed a Letter of Intent (LOI) with the Health-Policy and Research Foundation (HPRF) of California to receive up to $8.55 million to conduct further clinical development of Serdaxin, its novel therapeutic for anxiety, depression and aggression. The financing will underwrite the completion of Serdaxin's subsequent trials required to bring the treatment through regulatory approval and then to patients.

Serdaxin, currently in phase-IIa clinical trials, is a dual enhancer of serotonin and dopamine neurotransmitters via non-reuptake mechanisms, with a well-established and excellent human safety profile. Patient enrolment in the current trials will continue throughout 2009, with preliminary results expected in early 2010.

The funding for the development of Serdaxin comes from HPRF of California, and is subject to the execution of a definitive agreement between the two organizations. Both parties expect an agreement to be reached within the next 60 days.