Fortress Biotech Forms New Subsidiary, Cyprium Therapeutics, Inc., to Develop Novel Therapies for Menkes Disease and Related Copper Metabolism Disorders

Fortress Biotech Forms New Subsidiary, Cyprium Therapeutics, Inc., to Develop Novel Therapies for Menkes Disease and Related Copper Metabolism Disorders

Cyprium, NICHD establish CRADA to advance clinical development of Phase 3 candidate CUTX-101 (Copper Histidinate injection) in Menkes disease, a rare and fatal pediatric disease

Cyprium licenses preclinical AAV-ATP7A gene therapy from NICHD to develop in combination with CUTX-101

Lung S. Yam, M.D., Ph.D., named Chief Executive Officer

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New York, NY, March 14, 2017 — Fortress Biotech, Inc. (Nasdaq: FBIO) today announced the launch of a new subsidiary, Cyprium Therapeutics, Inc. (Cyprium), to develop novel therapies for the treatment of Menkes disease and related copper metabolism disorders. As part of its formation, Cyprium has entered into a Cooperative Research and Development Agreement (CRADA) with the Eunice Kennedy Shriver National Institute of Child Health and Human Development (NICHD), part of the National Institutes of Health (NIH), to advance the clinical development of Phase 3 candidate CUTX-101 (Copper Histidinate injection) for the treatment of Menkes disease. In addition, Cyprium and NICHD have entered into a worldwide, exclusive license agreement to develop and commercialize adeno-associated virus (AAV)-based gene therapy, called AAV-ATP7A, to deliver working copies of the copper transporter that is defective in Menkes patients, and to be used in combination with CUTX-101.

Under the terms of the CRADA, Cyprium is authorized to reference the Investigational New Drug application currently held by NICHD and any data generated at NICHD to advance the development of CUTX-101, including the filing of a New Drug Application and commercialization in the U.S. and other territories. In addition, Cyprium will be responsible for the  manufacturing of CUTX-101 under Current Good Manufacturing Practice (“cGMP”) regulations to support ongoing clinical studies at NICHD. Cyprium will also provide financial and logistical support for clinical and basic science research on Menkes disease and other related copper metabolism disorders at NICHD.

Stephen G. Kaler, M.D., Senior Investigator and Head, Section on Translational Neuroscience, Molecular Medicine Branch, and former NICHD Clinical Director, leads the Menkes disease research program at NICHD and developed the AAV-ATP7A gene therapy technology. Dr. Kaler will serve as principal investigator of the CUTX-101 clinical trials and studies of AAV-ATP7A gene therapy.

Lindsay A. Rosenwald, M.D., Fortress Biotech’s Chairman, President and Chief Executive Officer, said, “Fortress Biotech’s mission is to develop products that improve the lives of patients across multiple diseases. We are pleased to launch another subsidiary company, Cyprium Therapeutics, which we believe will further broaden our rare disease platform through the development of novel therapies for the treatment of Menkes disease and other related disorders.”

CUTX-101 Development Pathway

CUTX-101 is in development to supplement copper levels in patients with Menkes disease and related disorders. CUTX-101 is a subcutaneous injectable formulation of Copper Histidinate manufactured under cGMP that is intended to improve tolerability due to physiological pH, and to bypass the oral absorption of copper, which is impaired in patients with Menkes disease. In Phase 1/2 clinical studies conducted at NICHD, early treatment of Menkes patients with CUTX-101 led to an improvement in neurodevelopmental outcomes and survival.

Cyprium and NICHD plan to conduct a retrospective natural history study to collect data on Menkes disease patients who have not been treated with copper supplements. Data from this natural history study may serve as a historical control to demonstrate the efficacy and safety of CUTX-101. Cyprium expects to request a meeting with the U.S. Food and Drug Administration (FDA) in 2017 to determine a regulatory pathway for CUTX-101. CUTX-101 has been granted orphan drug designation by the FDA.

AAV-ATP7A Gene Therapy Development Pathway

AAV-ATP7A gene therapy, which is currently in preclinical development at NICHD, has demonstrated the ability to rescue neurological phenotypes and improve survival when co-administered with copper injections in a mouse model of Menkes disease. Cyprium will work with NICHD to determine optimal vector design and expects to nominate a candidate for clinical development in 2018. AAV-ATP7A gene therapy has been granted orphan drug designation by the FDA.

Lung S. Yam, M.D., Ph.D., Named Cyprium Chief Executive Officer
Fortress also announced the appointment of Lung S. Yam, M.D., Ph.D., as Chief Executive Officer of Cyprium. Dr. Yam co-founded Cyprium as part of his Business Development Consultant role at Fortress, where he identified multiple opportunities across diverse therapeutic areas leading to the in-licensing of multiple assets, including CUTX-101 and the AAV-ATP7A gene therapy program. In addition to his roles at Cyprium and Fortress, Dr. Yam serves as Senior Analyst at Opus Point Partners, LLC, an affiliated life-science focused asset management firm. Prior to joining Opus Point Partners, Dr. Yam was an equity research associate at Rodman & Renshaw, LLC. Dr. Yam earned M.D. and Ph.D. degrees from New York University School of Medicine, and a B.A. in biology from Johns Hopkins University where he graduated Phi Beta Kappa.

Dr. Yam stated, “We are thrilled to collaborate with Dr. Kaler and his team at NICHD to develop novel therapies for patients with Menkes disease and related disorders. Dr. Kaler has dedicated much of his career to improving treatment options for Menkes patients, including leading clinical studies of Copper Histidinate injections and developing an AAV-based gene therapy that has demonstrated encouraging preclinical results. The Cyprium team looks forward to continuing this important work with the goal of generating the first approved therapies for the treatment of Menkes disease.”

Cyprium was founded by Dr. Rosenwald, Dr. Yam and Michael S. Weiss, Executive Vice Chairman, Strategic Development at Fortress. Dr. Rosenwald will serve as the Executive Chairman of Cyprium’s Board of Directors, and Dr. Yam and Mr. Weiss will be additional members of the
Board.

About Menkes Disease and Related Copper Metabolism Disorders
Menkes disease is a rare X-linked recessive pediatric disease caused by gene mutations of copper transporter ATP7A. The minimum birth prevalence for Menkes disease is believed to be 1 in 34,810 males, and potentially as high as 1 in 8,664 live male births, based on recent genome-based ascertainment. Biochemically, Menkes patients have low levels of copper in their blood and brain, as well as abnormal levels of certain neurochemicals. Definitive diagnosis is typically made by sequencing the ATP7A gene. The condition is characterized by distinctive clinical features, including sparse and depigmented hair (“kinky hair”), connective tissue problems, and severe neurological symptoms such as seizures, hypotonia, and failure to thrive. Mortality is high in untreated Menkes disease, with many patients dying before the age of three. Milder versions of ATP7A mutations are associated with other conditions, including Occipital Horn Syndrome and ATP7A-related Distal Motor Neuropathy. Currently, there is no FDA-approved treatment for Menkes disease and its variants.

About CUTX-101 (Copper Histidinate)
CUTX-101 is in clinical development to treat patients with Menkes disease by replenishing Copper Histidinate, restoring copper homeostasis, and maintaining serum copper levels in the normal age appropriate range. CUTX-101 is a subcutaneous injectable formulation of Copper Histidinate manufactured under current good manufacturing practice (“cGMP”) that is intended to improve tolerability due to physiological pH and to bypass the oral absorption of copper, which is impaired in patients with Menkes disease. In a Phase 1/2 clinical trial conducted by Stephen G. Kaler, M.D., M.P.H., at the National Institutes of Health (“NIH”), early treatment of patients with Menkes disease with CUTX-101 led to an improvement in neurodevelopmental outcomes and survival. A Phase 3 trial of CUTX-101 in patients with Menkes disease also led by Dr. Kaler has completed enrollment. A Cyprium-sponsored expanded access protocol for Menkes disease patients is ongoing.

About Cyprium Therapeutics
Cyprium Therapeutics, Inc. (“Cyprium”) is focused on the development of novel therapies for the treatment of Menkes disease and related copper metabolism disorders. In March 2017, Cyprium entered into a Cooperative Research and Development Agreement (“CRADA”) with the Eunice Kennedy Shriver National Institute of Child Health and Human Development (“NICHD”), part of the NIH, to advance the clinical development of CUTX-101 (Copper Histidinate injection) for the treatment of Menkes disease. In addition, Cyprium and NICHD entered into a worldwide, exclusive license agreement to develop and commercialize adeno-associated virus (AAV)-based gene therapy, called AAV-ATP7A, to deliver working copies of the copper transporter that is defective in Menkes patients, and to be used in combination with CUTX-101. CUTX-101 was granted FDA Fast Track and Rare Pediatric Disease Designations, and both CUTX-101 and AAV-ATP7A have received FDA Orphan Drug Designation previously. Cyprium was founded by Fortress Biotech, Inc. (Nasdaq: FBIO) and is based in New York City. For more information, visit www.cypriumtx.com.

About Fortress Biotech
Fortress Biotech, Inc. (“Fortress”) is an innovative biopharmaceutical company that was recently ranked number 10 in Deloitte’s 2019 Technology Fast 500™, an annual ranking of the fastest-growing North American companies in the technology, media, telecommunications, life sciences and energy tech sectors, based on percentage of fiscal year revenue growth over a three-year period. Fortress is focused on acquiring, developing and commercializing high-potential marketed pharmaceutical products and development-stage pharmaceutical product candidates. The company has five marketed prescription pharmaceutical products and over 25 programs in development at Fortress, at its majority-owned and majority-controlled partners and at partners it founded and in which it holds significant minority ownership positions. Such product candidates span six large-market areas, including oncology, rare diseases and gene therapy, which allow it to create value for shareholders. Fortress advances its diversified pipeline through a streamlined operating structure that fosters efficient drug development. The Fortress model is driven by a world-class business development team that is focused on leveraging its significant biopharmaceutical industry expertise to further expand the company’s portfolio of product opportunities. Fortress has established partnerships with some of the world’s leading academic research institutions and biopharmaceutical companies to maximize each opportunity to its full potential, including Alexion Pharmaceuticals, Inc., AstraZeneca, City of Hope, Fred Hutchinson Cancer Research Center, InvaGen Pharmaceuticals Inc. (a subsidiary of Cipla Limited), St. Jude Children’s Research Hospital and Nationwide Children’s Hospital. For more information, visit www.fortressbiotech.com.

Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. As used below and throughout this press release, the words “we”, “us” and “our” may refer to Fortress individually or together with one or more partner companies, as dictated by context. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include: risks relating to our growth strategy; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; risks relating to the results of research and development activities; uncertainties relating to preclinical and clinical testing; risks relating to the timing of starting and completing clinical trials; our dependence on third-party suppliers; risks relating to the COVID-19 outbreak and its potential impact on our employees’ and consultants’ ability to complete work in a timely manner and on our ability to obtain additional financing on favorable terms or at all; our ability to attract, integrate and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other risks described in our Securities and Exchange Commission filings. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law. The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein.

Company Contacts:
Jaclyn Jaffe and William Begien
Fortress Biotech, Inc.
(781) 652-4500
ir@fortressbiotech.com

Lung Yam, M.D., Ph.D.
Cyprium Therapeutics, Inc.
ir@cypriumtx.com

Investor Relations Contact:
Daniel Ferry
LifeSci Advisors, LLC
(617) 430-7576
daniel@lifesciadvisors.com

Media Relations Contact:
Tony Plohoros
6 Degrees
(908)591-2839
tplohoros@6degreespr.com