Cangene Granted Exclusive U.S. Commercialization Rights for episil® by Camurus AB

Plans Product Launch in October 2012

Readers are referred to the cautionary notes regarding Forward-looking Information at the end of this release.

TSX: CNJ

WINNIPEG AND LUND, Sweden, July 9, 2012 /CNW/ - Cangene Corporation (Cangene) and Camurus AB announced today that they have entered into an agreement under which Cangene bioPharma Inc., a wholly-owned subsidiary of Cangene, will have exclusive rights to commercialize episil® in the United States for the management and relief of pain associated with oral lesions, including oral mucositis (OM), which results from cancer therapy and other causes.  Cangene bioPharma plans to launch episil® in the United States in October 2012.

A severe side‐effect of cancer chemotherapy and radiotherapy, OM is characterized by painful ulceration and opportunistic mouth infections, and affects approximately 500,000 patients in the United States per year. OM is caused by damage to the DNA in the basal epithelial cell lining of the mouth leading to decreased cell proliferation ability. OM can limit the dosing and frequency of treatment for cancer, prevent patients from eating, and often necessitates hospitalization for re‐hydration, opiate pain medication and total parenteral nutrition.

episil® has been clinically demonstrated to reduce pain for up to 8 hours. It is the first product for OM that is supplied as a ready-to-use, pocket-sized device, helping patients maintain their quality of life while undergoing cancer therapy.

"Lesions caused by OM are a painful reality for many patients undergoing cancer treatment and our research indicates a strong market need for alternative treatment options that will improve patients' quality of life," said John A. Sedor, President and CEO of Cangene. "In bringing episil® to the U.S, we are addressing a significant unmet medical need in a growing patient population, leveraging Cangene's wealth of experience in hospitals and oncology clinics and advancing our strategic focus on late-stage, in-licensing opportunities."

Fredrik Tiberg, President and CEO of Camurus said, "Cangene is an ideal partner for Camurus and episil®, with a highly experienced and effective sales and distribution structure targeting key haematology and oncology clinics in the U.S. We look forward to working closely together to provide a new and promising treatment alternative to patients across the U.S. who are suffering from OM and related problems".

Financial terms of the agreement were not disclosed.

About episil®
episil® represents a new concept for local treatment of pain associated with OM.  The product is administered as a lipid‐based liquid that spreads on the intra‐oral mucosal surfaces and transforms to a strongly bioadhesive FluidCrystal film that mechanically protects the sensitized and sore epithelium of the oral cavity. episil® is conveniently administered from a ready to use multi‐dose device equipped with a metered pump.  episil® has been clinically demonstrated to reduce pain for up to eight hours following administration.  episil® was developed by Camurus AB, a privately owned Swedish life science company. It is cleared as a medical device in the United States.

About Camurus AB
Camurus is a research-based pharmaceutical company dedicated to developing innovative therapeutics for diseases with high unmet medical needs. The company's current pipeline includes products for treatment of pain, opiate addiction, cancer and endocrinology. Camurus is also active in a number of development partnerships and research collaborations with international pharmaceutical and biotech companies.

About Cangene Corporation
Cangene Corporation (TSX: CNJ), headquartered in Winnipeg, Canada, is one of the nation's oldest and largest biopharmaceutical companies. It is focused on the development and commercialization of hospital and oncology clinic based therapeutics. Cangene's products are sold worldwide and include products that have been accepted into the U.S. Strategic National Stockpile. Cangene has employees in six locations across North America. It operates manufacturing facilities in Winnipeg, Manitoba and Baltimore, Maryland (through its wholly-owned subsidiary, Cangene bioPharma, Inc.) where it produces its own products and undertakes contract manufacturing for a number of customers. Cangene operates three U.S. and one Canadian plasma-collection facilities operating under the name Cangene Plasma Resources. For more information about Cangene, visit the Company's website at www.cangene.com.

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For further information:

Contact Information
Francis J. St.Hilaire
Vice President, General Counsel & Secretary
Ph:  (204) 275-4540
Email: fsthilaire@cangene.com