Access Pharmaceuticals, Inc. announces third quarter results.

DALLAS, TEXAS--(BUSINESS WIRE)--NOVEMBER 19, 1996--ACCESS PHARMACEUTICALS, INC. (OTC BULLETIN BOARD: AXCS) today reported their third quarter and nine months financial results for the period ended September 30, 1996.

During the third quarter 1996, the Company reported no revenues. In the same period a year ago, the company posted $45,000 of sponsored research and development revenues. For the third quarter ended September 30, 1996, the Company incurred a net loss of $872,000, or $0.03 per share, compared to a net loss of $200,000, recorded for the third quarter in 1995. Research and development expenses increased to $430,000 in 1996 from $106,000 in 1995, reflecting the increase in scientific staffing. General and administrative expenses were impacted by the costs associated with being a public company, and incremental business activities which increased expenses to $454,000 in 1996 compared with $95,000 in 1995.

Kerry P. Gray, President and Chief Executive Officer of Access Pharmaceuticals, stated, "Our financial results for the third quarter are in line with expectations and the Company's operations are progressing according to plan. During the quarter, we continued to advance our products through the development process, enhanced our scientific organization, and expanded external scientific collaborations."

The Company stated its year-to-date loss of $10,188,000 or $0.35 cents per share reflects the accounting treatment of the merger which resulted in a write-off of excess purchase price $8,314,000. Operating expense increases of $1,128,000 are principally due to the merger and the public company reporting and compliance requirements, the expanded organization and incremental research and development expenditures of $340,000.

Access Pharmaceuticals is a polymer-based, therapeutics company providing a new dimension in drug delivery in controlling site directed targeting, localized release and clearance of therapeutic drugs, imaging agents and radiopharmaceuticals.

This press release contains certain statements that are forward- looking and that involve risks and uncertainties, including but not limited to the uncertainties associated with research and development activities, future capital requirements, dependence on others, collaborations and other risks detailed in the Company's reports filed under the Securities and Exchange Act, including the Company's annual report on Form 10-K for the year ended December 31, 1995. -0-

                    ACCESS Pharmaceuticals, Inc.
                    (A Development Stage Company)

                        FINANCIAL HIGHLIGHTS
                (in thousands, except per share data)
                             (unaudited)

                               Three Months Ended   Nine Months Ended
                                  September 30         September 30
                                1996       1995      1996        1995

Revenues
 Research and development    $    -     $   45     $    -     $   575
 Option income                    -          -        165           -
Total Revenues                    -         45        165         575

Expenses:
 Research and development       430        106        887         547
 General and administrative     454         95      1,145         360
 Interest                        10         13         37          49
 Depreciation and amortization   36         31        108          93
 Write-off of excess
  purchase price                  -          -      8,314           -
Total expenses                  930        245     10,491       1,049

Loss from operations           (930)      (200)   (10,326)       (474)

Other income interest            58          -        138           4

Loss after income taxes    $   (872)   $  (200)  $(10,188)    $  (470)

Loss per share             $  (0.03)   $ (0.07)  $  (0.35)    $ (0.16)

Shares used in computing
 loss per share              31,386      2,926     29,327       2,926



                      SELECTED BALANCE SHEET INFORMATION

                              September 30, 1996     December 31, 1995
                                   (unaudited)           (audited)

Cash and cash equivalents       $      5,160            $      30
Total assets                           5,583                  424
Working capital                        5,219                 (515)
Deficit  accumulated during
 the development stage               (14,032)              (3,847)
Total stockholders' equity/deficit     4,990                 (348)

CONTACT: ACCESS PHARMACEUTICALS INC.

Kerry P. Gray

President & CEO

[phone]

or

Financial Contact:

Lippert/Heilshorn & Associates, Inc.

Keith Lippert/Anne Marie Fields

[phone]