ISOTECHNIKA RECEIVES FUNDING TO START PHASE III TRIAL

"The closing of this licensing deal with ILJIN Life Science puts into motion our key strategy to advance the development of voclosporin into a Phase III clinical trial for prevention of kidney transplant rejection, the most important indication for our lead drug," stated Isotechnika CEO, Dr. Robert Foster.

Trades on Toronto Stock Exchange - (TSX: ISA)

EDMONTON, Feb. 2 /CNW/ - Isotechnika Pharma Inc. (TSX: ISA) is pleased to announce that it has finalized the Development, Distribution and License Agreement with ILJIN Life Science Co., Ltd., previously announced on November 16, 2010.  Isotechnika will now receive the license fee of US$4.5 million plus proceeds of US$2.375 million from ILJIN's purchase of its first tranche of Common Shares from treasury.  The funds from this licensing agreement will be used to finance a pivotal Phase III trial of voclosporin for the prevention of kidney transplant rejection. 

Dr. Foster also commented, "We are very excited to have the support of ILJIN as a strategic investor in Isotechnika.  This transaction provides all stakeholders a real opportunity to realize the full value of our critical voclosporin asset.  We look forward to being able to provide an update on our plans for the pivotal phase III clinical trial in the coming months."

As part of the transaction, Isotechnika amended its partnership with Paladin Labs Inc. (TSX: PLB).  These amendments were made to facilitate Isotechnika's transaction with ILJIN, and will now allow Isotechnika to aggressively move forward with its clinical development plan for voclosporin in transplantation.  Paladin sold 12.5 million shares of Isotechnika to ILJIN for $3.25 million and licensed additional territories to Isotechnika for $1 million.  Paladin still retains rights to voclosporin for transplantation and autoimmune diseases for Canada, South Africa and Israel. Paladin recently filed a New Drug Submission (NDS) with Health Canada for voclosporin for the treatment of moderate to severe psoriasis.

ILJIN Life Science Co., Ltd. is a member company of ILJIN Group, a global conglomerate based in Seoul, South Korea, which last year earned US$2 Billion in revenue.  Information on ILJIN Group can be found at www.iljin.co.kr.

About Isotechnika Pharma Inc.

Isotechnika Pharma Inc. is a biopharmaceutical company focused on the discovery and development of immunomodulating therapeutics designed to offer key safety advantages over currently available treatments.  Its lead drug, voclosporin, is a calcineurin inhibitor, and is targeted at the estimated $3.0 billion market for this class of immunosuppressants.

Isotechnika Pharma Inc. is a publicly traded company on the Toronto Stock Exchange under the symbol "ISA". More information on Isotechnika Pharma can be found at www.isotechnika.com or www.SEDAR.com.

This news release contains forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but caution that these assumptions regarding the future events, many of which are beyond the control of the Company, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the annual reports, as well as in the Company's Annual Information Form for the year ended December 31, 2009. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether a result of new information, future events, or except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Company's ongoing quarterly filings, annual report and Annual Information Form and other filings found on SEDAR at www.sedar.com

SOURCE Isotechnika Pharma Inc.

For further information:

Dr. Robert Foster    
President & CEO   
780-487-1600 (247)   
rfoster@isotechnika.com
          Mr. Dennis Bourgeault
Chief Financial Officer
780-487-1600 (226)
dbourgeault@isotechnika.com

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Isotechnika Pharma Inc.

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