Grünenthal and AcelRx enter into partnership for EU commercialization of ZALVISO®

Aachen, Germany / Redwood City (California), USA (ots) -
Grünenthal Group today announced that the company entered into a
commercial partnership with AcelRx Pharmaceuticals, Inc. for ZALVISO,
a patient-controlled analgesia device for self- administration of
sufentanil nanotablets by patients following surgery. The agreement
covers the countries of the European Union, EEA and Australia. AcelRx
will supply Grünenthal with the product and retains all rights in
remaining countries including the US and Asia. With this partnership
Grünenthal, a family-owned company headquartered in Aachen, Germany,
significantly strengthens its hospital franchise and underlines its
strong market position as a pain specialist in the pharmaceutical
market.

Strategic portfolio expansion for the benefit of more than 20
million patients

According to market research there are more than 20 million
patients in Europe who could potentially benefit from this innovative
alternative to current treatment options in acute post-operative pain
management. Additionally, this device is an excellent expansion of
Grünenthal's existing portfolio of innovative drugs for the treatment
of moderate to severe chronic pain.

"We are extremely pleased to enter into this collaboration with
AcelRx and its proven concept of a patient-controlled analgesia
system to address a significant unmet medical need, thereby allowing
hospitals to avoid the challenges of intravenous line- related
infections, as well as freeing hospital personnel from the need to
program intravenous infusion pump systems. With ZALVISO Grünenthal
is building on its presence in the hospital market, an area that
provides us with significant growth opportunities in the mid- and
long-term," said Prof. Eric-Paul Pâques, Grünenthal's Chief Executive
Officer.

"As an established leader in providing pain management solutions
to patients throughout Europe, Grünenthal is an excellent partner for
AcelRx and for ZALVISO" said Richard King, President and CEO.
"Grünenthal's commercial track record across Europe demonstrates
their ability to achieve commercial success in this large market, and
will enable patients in Europe suffering with moderate-to- severe
pain in a medically supervised setting to receive the benefits of our
highly innovative, patient-centric product ZALVISO."

Market launch of ZALVISO in Europe planned for 2015 An NDA for
ZALVISO was submitted to the FDA on September 27 and accepted for
filing by the FDA on December 02. An approval for the US-market could
be expected in the third quarter of 2014. Grünenthal and AcelRx are
planning to submit a MAA to EMA around mid-2014 with an anticipated
approval and go to market in Europe by the end of 2015. Under the
terms of the agreement, Grünenthal pays an upfront cash payment of
$30 million to AcelRx and up to $220 million in additional milestone
payments, based upon successful regulatory and product development
efforts and net sales target achievements as well as royalty payments
on net sales of ZALVISO in the Grünenthal territory.

About Grünenthal

The Grünenthal Group is an independent, family-owned,
international research-based pharmaceutical company headquartered in
Aachen, Germany. Building on its unique position in pain treatment,
its objective is to become the most patient-centric company and thus
to be a leader in therapy innovation. Grünenthal is one of the last
five remaining research-oriented pharmaceutical companies with
headquarters in Germany which sustainably invests in research and
development. Research and development costs amounted to about 26
percent of revenues in 2012. Grünenthal's research and development
strategy concentrates on selected fields of therapy and state-of-the-
art technologies. We are intensely focused on discovering new ways to
treat pain better and more effectively, with fewer side-effects than
current therapies. Altogether, the Grünenthal Group has affiliates in
26 countries worldwide. Grünenthal products are sold in more than 155
countries. Today, approx. 4,400 employees are working for the
Grünenthal Group worldwide. In 2012, Grünenthal achieved revenues of
USD 1,251 mn. More information: www.grunenthal.com.

About AcelRx Pharmaceuticals, Inc.

AcelRx Pharmaceuticals, Inc. is a specialty pharmaceutical company
focused on the development and commercialization of innovative
therapies for the treatment of acute and breakthrough pain. AcelRx's
lead product candidate, ZALVISO, is designed to solve the problems
associated with post-operative intravenous patient- controlled
analgesia which has been shown to cause harm to patients following
surgery because of the side effects of morphine, the invasive IV
route of delivery and the complexity of infusion pumps. AcelRx has
announced positive results from each of the three Phase 3 clinical
trials for ZALVISO and has submitted an NDA to the FDA seeking its
approval. AcelRx has also announced positive top-line results for a
Phase 2 trial for ARX-04, a sufentanil formulation for the treatment
of moderate-to-severe acute pain, funded through a grant from the
U.S. Army Medical Research and Materiel Command. The company has two
additional pain treatment product candidates, ARX-02 and ARX-03,
which have completed Phase 2 clinical development. For additional
information about AcelRx's clinical programs, please visit
www.acelrx.com.

Contact:
Frank Schönrock, Vice President Public Engagement
Tel.: +49 241
569-1568, Fax: +49 241 569-3539,
frank.schoenrock@grunenthal.com

Grünenthal GmbH, 52099 Aachen,
Germany, www.grunenthal.com