Discovery Labs Collaborates With Battelle on AEROSURF Program

Discovery Laboratories (Nasdaq: DSCO) today announced that it has entered into a strategic collaboration with Battelle, the world's largest independent research and development organization with 35 years of specific expertise in aerosol science. The parties intend to further develop Discovery Labs' proprietary capillary aerosol generator (CAG) for use in the planned AEROSURF® phase 3 clinical program and, if approved, initial commercialization. The arrangement also reflects the plan to negotiate agreements to provide for the manufacture of phase 3 clinical devices and, if AEROSURF is approved, initial commercial supply. The CAG is currently being used in neonatal intensive care units for the company's AEROSURF phase 2 clinical program for the treatment of respiratory distress syndrome (RDS) in premature infants. Battelle and Discovery Labs generally will share equally in the agreed costs of the device development for the AEROSURF RDS program. In consideration for its investment and expertise, Battelle will receive warrants and future royalties on AEROSURF sales and license sales revenues. "This collaboration brings us a partner with world class capabilities in aerosol device design and manufacture, in addition to See full press release