Newton, Massachusetts – May 16, 2011.

NeuroHealing Pharmaceuticals today announced that it has entered into a strategic master services and investment agreement with Cato BioVentures. This agreement includes a collaboration with Cato Research Ltd. (“Cato”), its global contract research organization, to assist in the clinical development of NeuroHealing’s lead drug NH001. The investment and collaboration will help support the ongoing clinical development of NH001. The NH001-2 clinical trial is currently enrolling patients in a study to test the safety and efficacy of NH001 in accelerating the recovery and improving the outcome of patients in an altered state of consciousness following a severe traumatic brain injury (TBI) in a double-blind, placebo-controlled, multi-centered, randomized clinical trial (clinicaltrials.gov identifier NCT00761228). Subjects who have not responded in the NH001-2 study after 28 days may be eligible to participate in an open-label extension study NH001-3. “Cato’s clinical experience, combined with its team of professional experts, will be very helpful in the clinical and regulatory development of NH001 through product approval,” said Neal M. Farber, Ph.D., CEO of NeuroHealing. “We are excited to receive this investment and to continue to work with Cato BioVentures and Cato Research to help us with this important life-saving medical therapy.” “NeuroHealing’s NH001 treatment for helping traumatic brain injured patients recover from a coma is very encouraging and we look forward to working with NeuroHealing as both a clinical service provider and investor,” said Lynda Sutton, COO of Cato.

About NH001
NH001 is a potent dopaminergic agonist with well-established human safety data, appropriate pharmacokinetic profile and route of administration. It is a direct acting dopamine agonist at both D1 and D2 dopamine receptors. It rapidly crosses the blood brain barrier and reaches a concentration in the brain eight times higher than that in plasma. Because dopaminergic function appears to be of importance in executive central nervous system function, such as arousal and memory, NH001 has been designed to help regain consciousness, accelerate recovery and improve the functional outcome of patients from a coma, vegetative or minimally conscious state following a traumatic brain injury.

About Cato BioVentures
Cato BioVentures is the venture capital affiliate of Cato Research Ltd. For over 20 years, Cato BioVentures has assisted management teams in building successful life science companies. Cato BioVentures invests its CRO Service Capital™ in innovative technologies, therapeutics, medical devices, and platform tools, offering promising life science companies immediate access to a broad range of essential CRO services on a noncash basis. Access to these time-critical CRO services enables NEUROHEALING PHARMAC EUTICALS INC. 617.331.4111 – WWW.NEUROHEALING.CO M 50 UNDINE RD, UNIT #1. NEWTON, MA 02135 2 management to achieve key value-added development and regulatory milestones with less reliance on other sources of capital. Cato BioVentures has offices in Boston’s Bay Colony, Research Triangle Park and Silicon Valley (www.catobioventures.com). Cato Research is a global contract research and development organization affiliate offering a full range of research services for the development of drugs, medical devices and biologics (www.cato.com).

About NeuroHealing Pharmaceuticals
NeuroHealing Pharmaceuticals, Inc. is a clinical stage private company developing innovative treatments for specialty indications based on repositioning neurologically active compounds. Clinical stage programs include: NH001 (phase II), a dopaminergic agent to help post traumatic brain injury patients to emerge from a coma, vegetative or minimally consciousness state; NH004 (phase II), an anticholinergic agent in a convenient intra-orally muco-adhesive dissolving film to help treat patients suffering from sialorrhea (drooling); and NH02D, a neurologically active compound to treat premature ejaculation.

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