Genix Pharmaceuticals Corporation Enters into a Definitive Agreement to Acquire Global Rights to Flu-X(R)

A Novel and Proprietary Anti-Viral, Anti-Flu and Common Colds Coronavirus(1) Spray

Vancouver, British Columbia--(Newsfile Corp. - March 27, 2020) - Genix Pharmaceuticals Corporation (TSXV: GENX)("GENIX" or the "Company"), announces that it has entered into an agreement, dated for reference March 24, 2020 (the "Agreement"), with Canagen Pharmaceuticals Inc. ("Canagen") pursuant to which, subject to acceptance of the TSX Venture Exchange ("TSXV"), the Company has agreed to purchase the sole and exclusive global distribution, sales and marketing rights and interest (the "Global Rights") for Flu-X®, a novel and proprietary, anti-viral, anti-flu and common colds coronavirus1 oral and spray herbal product.

GENIX makes no representations that Flu-X® will have any beneficial effect on the prevention, treatment or cure of COVID-19 (SARS-CoV-2).

Canagen is the manufacturer and owner of the intellectual property and all sales, marketing and distribution rights to Flu-X®. Under the Agreement, the Company will acquire the Global Rights for a term of ten years, extendable by mutual agreement, by making cash payments to Canagen of CAD $100,000, comprising $25,000 paid within four months of closing, and $75,000 within the first anniversary thereafter. GENIX plans to commence global sales of Flu-X® immediately and in Canada once regulatory approval, through the issuance of a Natural Product Number (NPN) by Health Canada, has been granted. The Global Rights exclude Canagen's existing Flu-X® customers.

Flu-X® is an herbal, oral, anti-viral, anti-flu virus and colds coronavirus1 spray. Flu-X® was originally developed by Professor D.S. Liu, Ph.D., a leading virologist and medical doctor, as an anti-SARS (Severe Acute Respiratory Syndrome) coronavirus1 drug to prevent and treat the SARS coronavirus (SARS-CoV) outbreak during China's SARS coronavirus epidemic in 2002-2003. Due to its highly safe and effective anti-viral properties and its success in treating SARS-CoV infected patients and preventing SARS-CoV infections at several hospitals in China, the original drug was rebranded as Flu-X® and has been sold on a limited basis in Canada, the United States, United Kingdom and China in the past.

There is a high degree of similarity between the SARS-CoV and the COVID-19 coronavirus (SARS-CoV-2). According to The Lancet Infectious Diseases, the whole genome of SARS-CoV-2 has an 86% similarity with SARS-CoV. Both viruses share high degrees of homology to SARS-like coronaviruses isolated in bats, suggesting that bats are the probable origin of both SARS-CoV and SARS-CoV-2. Even in terms of disease dynamics there are apparent similarities. The main transmission route is thought to be respiratory droplets, although viral shedding via faeces has also been reported for both viruses. The angiotensin-converting Enzyme 2 (ACE2), found in the lower respiratory tract of humans, has been identified as the receptor used for cell entry for both SARS-CoV and SARS-CoV-2.

Although there are striking similarities between SARS and COVID-19 diseases, the differences in the virus characteristics will ultimately determine whether the same measures for SARS will also be successful for COVID-19. COVID-19 differs from SARS in terms of infectious period, transmissibility, clinical severity, and extent of community spread (source: The Lancet Infectious Diseases).

"We are truly excited about acquiring the global rights to Flu-X®. It was used safely and effectively in China during the SARS-CoV epidemic and has been shown to be effective against several coronaviruses1," stated Sina Pirooz, the Company's CEO. "Since there are striking similarities between the SARS and COVID-19 coronaviruses, we are encouraged about the potential of Flu-X® on COVID-19," added Mr. Pirooz.

About Flu-X®: The result of over three years of extensive clinical research and development during the SARS coronavirus epidemic in China, Flu-X® is an effective, over-the-counter (OTC), anti-viral, anti-flu and colds, anti-coronavirus1 oral and spray product, and is a proprietary scientific formulation of standardized Chinese herb extracts. It has been clinically demonstrated in several scientific studies and animal and human patient trials to kill both influenza A and B viruses and cold coronaviruses1 upon contact, thus preventing contraction of certain strains of the influenza. These clinical studies and trials also confirmed that Flu-X® prevents the replication of both influenza A & B viruses and cold coronaviruses1, thereby preventing and reducing the severity of flus and colds and accelerating recovery.

A 153-patient double blind, randomized, placebo-controlled clinical trial of patients with Viral Respiratory Tract Infections demonstrated an 82.9% recovery rate in the Flu-X® group compared to 19.6% in the placebo control group. Further, comparative in-vivo studies on mice confirm the product's superiority to Interferon (a leading anti-viral pharmaceutical) against the influenza virus, offering a protection rate of 55% compared to 40% for Interferon. Clinical toxicology studies confirm the product to be safe even at 400 times the recommended human dosage. Additionally, the product has been used by over 5,000 volunteers and customers and has been shown to be safe and highly effective in the prevention and treatment of flu and colds, by killing and preventing the replication of the influenza A and B viruses and cold coronaviruses1. In clinical tests, Flu-X® has also been shown to inhibit the Haemophilus influenzae, Aureus staphylococcus and a hemolytic streptococcus bacteria strains, associated with secondary flu-related bacterial infections.

Flu-X® was originally developed by Professor D.S. Liu, an anti-SARS virus drug during China's SARS epidemic in 2002-2003 and was successfully used to treat SARS patients at several hospitals in China. Professor Liu has over 40 years' experience in molecular biology and virology and graduated as a physician from China's prestigious China Medical University. He completed his post-graduate degree at the China Academy of Medical Sciences under the supervision of Professor Zhu Jiming, the scientist who isolated the first Asian influenza strain in the world, in the 1950's. Professor Liu has worked extensively as a virologist with projects for the World Health Organization (WHO), Royal Post Graduate Medical School, UK, Welcome Research Laboratories, UK, and Peninsular Laboratory Inc., USA. He was awarded the "National Special Contribution Scientist Award" by the State Council of China and is a member of the editorial committee of "China Biological Products Journal" and "China Immunology Journal". He is also Scientific Advisor for anti-cancer drug development at Swiss Debiopharm Research Foundation.

About the Company

Genix Pharmaceuticals Corporation is an innovative Canadian life sciences company focused on the research, development, manufacture, licensing, sales and distribution of novel and innovative healthcare products, which include proprietary over-the-counter nutraceuticals and generic pharmaceuticals that have been shown to deliver consistent and verifiable results in various therapeutic areas. The Company employs a pharmaceutical model for product development and selection including rigorous active ingredient discovery and clinical testing for all its nutraceutical and pharmaceutical products. The Company intends to continue developing novel and innovative products for sale through traditional retail outlets as well as direct to consumers and e-commerce platforms, in keeping with the evolving nature of the health care industry towards Integrative Medicine and Health ("IMH") and Complementary and Alternative Medicine ("CAM"). GENIX intends to market its products in Canada, the United States, China, Southeast Asia, the United Kingdom and other select countries.

About Canagen

Established in 2001, Canagen Pharmaceuticals Inc. is an established and innovative Canadian-owned, pharmaceuticals company actively engaged in the manufacture of finished dosage, generic pharmaceuticals, active pharmaceutical ingredients (APIs) and OTC products and in the research, development and commercialization of novel drugs covering the cardiovascular, oncology, dementia and anti-viral therapeutic areas. Its Nutraceuticals Division is actively involved in the research, development and commercialization of innovative nutraceutical products, utilizing best pharmaceuticals practices.

Canagen owns and operates eight certified GMP pharmaceuticals factories in Canada, China, India and Russia and has dedicated R&D facilities in Canada, India and China. Canagen also has research and development collaborations with Canada's National Research Council (NRC), The Department of Fisheries & Ocean's Centre for Aquaculture and Environmental Research (CAER) and China's Institute of Materia Medica.

(1) 1 Aside from COVID-19

On behalf of the Board,

Sina Pirooz, CEO, Director
Genix Pharmaceuticals Corporation

For more information regarding Genix, please contact:

K. Bottomley
Tel: +1.604.609.6199

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Advisory Regarding Forward Looking Statements

This news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially and there are no assurances that the transaction described in this news release will close on the terms described or at all. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company. Readers are cautioned not to place undue reliance on forward looking statements.

To view the source version of this press release, please visit