Press Release: Propella Therapeutics Announces Licensing Agreement with Jiangsu Aosaikang Pharmaceutical Co. Ltd. (ASK Pharm) for Development and Commercial Rights to CGS-200-5 in Greater China

Propella to Receive Upfront Payment, Regulatory and Sales Milestones, and Royalties

Phase 2 Study of CGS-200-5 Reduced Pain by 50% in Patients with Moderate to Severe Osteoarthritis of the Knee

Executing on Strategy to License Non-Oncology Pipeline Assets

PITTSBORO, N.C., and NANJING, China, April 07, 2022 (GLOBE NEWSWIRE) — Propella Therapeutics, Inc. (“Propella”), a private, clinical-stage biopharmaceutical company developing best-in-class oncology therapeutics, and Jiangsu Aosaikang Pharmaceutical Co. Ltd. (ASK Pharm), a research-based pharmaceutical enterprise and leading manufacturer in PPI and oncology medications, today announced that the companies have entered into an exclusive licensing agreement for CGS-200-5, a clinical-stage topical treatment that is being developed for the treatment of pain in patients with moderate to severe osteoarthritis (OA) of the knee. Under the terms of the agreement, ASK Pharm will have exclusive rights to develop, manufacture and commercialize CGS-200-05 for the Greater China region. As part of the agreement, Propella will receive an upfront payment and is entitled to receive regulatory and sales milestones, as well as royalties on future product sales. In a prior Phase 2 study (NCT#:03528369), four once-daily applications of CGS-200-5 reduced pain by 50% for 90 days in patients with moderate to severe OA of the knee.

“We are pleased to enter this licensing agreement with Jiangsu Aosaikang Pharmaceutical,” said William Moore, Ph.D., President and CEO of Propella Therapeutics. “Today’s announcement reflects our strategy to partner non-oncology pipeline assets with leading companies who have the expertise to maximize their value in select territories. Such agreements also provide Propella with an important source of non-dilutive capital that will help us advance our oncology pipeline, including our lead clinical-stage oncology asset, PRL-02, which is being developed for the treatment of advanced prostate cancer.”

“Chronic disease therapeutics are one of ASK‘s four strategic focuses. We are very pleased to have reached this cooperation with Propella,” said Mrs. Tingting Song, Chief Strategy Officer of ASK Pharm. “(OA) is one of the most prevalent conditions resulting to disability, particularly in the elderly population in China. CGS-200-5 meets the significant unmet medical need and market demand for topical long-lasting pain relief for knee osteoarthritis (OA). We will work closely with our partner to accelerate the development and commercialization process of CGS-200-5 and provide more effective medicines to patients as soon as possible.”

Yafo Capital (Shanghai) acted as sole advisor to Propella on this transaction.

About CGS-200-5

There are currently no approved therapies that effectively manage moderate to severe OA knee pain without significant concerns related to efficacy, tolerability, safety, or addiction potential. Topical CGS-200-5 has clinically been shown to significantly reduce OA knee pain. In a Phase 2 study, CGS-200-5 reduced pain by 50% (based on WOMAC pain score) while demonstrating good safety and tolerability. CGS-200-5 also demonstrated highly durable pain relief. Patients on average reported diminished pain through 90 days, the final time point of the Phase 2 study, following just four consecutive days of topical treatment at study start. Acknowledging the therapeutic potential of topical high-concentration capsaicin, the American College of Rheumatology recently revised its OA treatment guideline to conditionally recommend topical capsaicin for knee OA pain.

About Jiangsu Aosaikang Pharmaceutical Co. Ltd. (ASK Pharm)

Founded in January 2003, Jiangsu Aosaikang Pharmaceutical Co. Ltd. (ASK Pharm) is a research-based pharmaceutical enterprise that integrates and streamlines innovative research and development with manufacture, marketing promotion and sales of proprietary pharmaceuticals, fine chemicals and health-care products. ASK Pharm specializes in digestive disease, multidrug resistant infection, oncology and chronic disease areas and has established a nationwide marketing and sales network for its products. ASK Pharm has ascended into the ranking of “100 Top National Pharmaceutical Companies” since 2009, and it has also received numerous honors such as “Top Ten National R&D Innovators”, “Best National Enterprise for Investment”, and “National Torch Program High-Tech Enterprises”.

About Propella Therapeutics Inc.

Propella Therapeutics is a biopharmaceutical company that has developed a platform that combines medicinal chemistry with lymphatic targeting to create best- or first-in-class oncology drugs that have validated MOAs and biological targets but suffer from efficacy and safety limitations. Lymphatic targeting enables therapies to be delivered directly to therapeutic target tissues such as the lymph nodes and bone, thereby enhancing efficacy and bypassing plasma compartment safety and efficacy limitations and first-pass liver effects. Propella is currently in the Phase 1 portion of a Phase 1/2a study of its lead product candidate, PRL-02, for the treatment of metastatic prostate cancer. The privately held development-stage company, based in Pittsboro, N.C., is dedicated to meeting the needs of cancer patients currently underserved by existing standards of care.

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