Canagen Pharmaceuticals Inc. is also active in the field of drug discovery of new ethical drugs and has, through its in-house Research & Development Division, developed a pipeline of six novel drug candidates in the cardiovascular, cancer and Alzheimers therapeutic areas. The Company has already been issued US patents for its three cardiovascular drugs and has, additionally, filed U.S. patents for its other novel drug candidates.

The Company has also developed a novel, patented Tuberculosis (TB) drug which has already been registered and approved by the Ministry of Health in Ukraine and Bulgaria and is already being sold in these markets. Unlike the existing poly-therapy "cocktail" of drugs currently used to treat TB, our TB drug provides superior efficacy with lower dosage and minimal side effects.

The Company is now in the process of conducting human clinical trials of our TB drug on multi drug resistance (MDR-TB) and extreme drug resistance (XDR-TB) tuberculosis patients, to determine efficacy and other outcomes of this TB drug for this rapidly growing global public health issue.

In addition to its in-house R&D capability, the company also has long term collaborative research and development agreements with a number of eminent universities and research institutes in Canada, Germany and Bulgaria, including St. Boniface Hospital Research Centre and University of Manitoba, and several of China's leading pharmaceuticals research organizations, including the National Institutes of Pharmaceutical Research and Development, the Institute of Materia Medica, Peking Union Medical College and Beijing Pharmaceutical Research Institute.