We present a new drug to treat asthma incorporating a novel formulation combining the potent bronchodilator carbon dioxide (CO2) delivered to the lung as a gas in combination with a synthetic lung surfactant, perfluoroctyl bromide (PFOB) co-delivered as an aerosol. This unique drug combination, designated S-1226, is being developed by academic founders through Canadian based biotech start-up SolAeroMed Inc. S-1226 has been shown to rapidly dilate airways within 4 seconds of delivery – considerably faster than existing therapies. S-1226 has been proven effective in treating both methacholine and allergen induced bronchoconstriction in two animal models of asthma (sheep and rat). S-1226 utilizes unique mechanism of action independent of both adrenergic and cholinergic pathways. As such S-1226 may offer a major innovation in therapy for asthma compared to existing drugs. In humans, we have completed a successful Phase I clinical trial on S-1226 indicating minimal adverse effects at therapeutic dosing levels. S-1226 is currently engaged in Phase II clinical trials intended to demonstrate safety and efficacy in allergen induced asthmatic subjects. The S-1226 combination of CO2 gas and PFOB aerosol presents unique challenges in delivering drugs to the lungs, and we are developing IP around novel delivery devices to reflect the unique composition of this new treatment for asthma.