Bone Therapeutics treats first patient in ALLOB Phase IIb tibial fracture study

REGULATED INFORMATION

All patients expected to be recruited in H1 2022

Topline results anticipated in H2 2022

Gosselies, Belgium, 12 January 2020, 7am CEST – BONE THERAPEUTICS (Euronext Brussels and Paris: BOTHE), the cell therapy company addressing unmet medical needs in orthopedics and other diseases, today announces it has treated the first patient for the ALLOB Phase IIb clinical study in patients with difficult-to-heal tibial fractures.

The ALLOB Tibial Fracture Phase IIb study is a randomized, double-blind, placebo-controlled study. In this study the potential of ALLOB to accelerate fracture healing and prevent late-stage complications in patients with difficult fractures in the shinbone (tibia), will be evaluated and compared to placebo, on top of standard of care after a follow-up period of 6 months. ALLOB will be applied by a single percutaneous injection 24-96 hours post reduction surgery in patients with fresh tibial fractures at risk for delayed or non-union. The study has been approved in 7 European countries (Belgium, Czech Republic, France, Germany, Hungary, Poland and Spain). The study is expected to enroll 178 patients in over 40 sites. Bone Therapeutics anticipates finalizing patient recruitment in H1 2022. Topline results are expected in second half of 2022. Both events are subject to evolution of the COVID-19 pandemic and the associated containment measures.

“The start of the ALLOB clinical study in difficult tibial fractures is a critical step for Bone Therapeutics. Difficult fractures remain an underserved condition with limited therapeutic options, which can result in lifelong disability and amputations. There are estimated more than 1.7 million procedures in the EU5, US and Japan alone ⁽¹⁾. A positive outcome of this study could lead to a valuable treatment for these patients at risk of delayed or non-union fractures.” said Miguel Forte, CEO, Bone Therapeutics. “This Phase IIb first patient treatment for ALLOB follows positive 24-month results for the Phase IIa ALLOB clinical trial in lumbar spinal fusion procedures, as well as our completion of the recruitment and patient treatment of the pivotal Phase III clinical study with the improved viscosupplement, JTA-004, in patients with knee osteoarthritis. The successful completion of Bone Therapeutics’ ALLOB trials would further demonstrate the promise of mesenchymal stromal derived cell therapies for the treatment of other underserved conditions.”

About ALLOB and Bone Therapeutics’ proprietary, scalable cell therapy manufacturing process

ALLOB is Bone Therapeutics’ off-the-shelf allogeneic cell therapy platform consisting of human allogeneic bone-forming cells derived from cultured bone marrow mesenchymal stromal cells (MSC) from healthy adult donors. To address critical factors for the development and commercialization of cell therapy products, Bone Therapeutics has established a proprietary, optimized production process that improves consistency, scalability, cost effectiveness and ease of use of ALLOB. This optimized production process significantly increases the production yield, generating thousands of doses per bone marrow donation. Additionally, the final ALLOB product is cryopreserved, enabling easy shipment and the capability to be stored at the point of care for easy clinical use. The process will therefore substantially improve product quality, reduce overall production costs, simplify supply chain logistics, increase patient accessibility and facilitate global commercialization. The Company has implemented the optimized production process to produce clinical batches for the ongoing Phase IIb clinical trial in patients with difficult-to-heal tibial fractures.

⁽¹⁾ Bone Therapeutics’ estimates.

About Bone Therapeutics

Bone Therapeutics is a leading biotech company focused on the development of innovative products to address high unmet needs in orthopedics and other diseases. The Company has a, diversified portfolio of cell and biologic therapies at different stages ranging from pre-clinical programs in immunomodulation to mid-to-late stage clinical development for orthopedic conditions, targeting markets with large unmet medical needs and limited innovation.

Bone Therapeutics is developing an off-the-shelf next-generation improved viscosupplement, JTA-004, which is currently in Phase III development for the treatment of pain in knee osteoarthritis. Consisting of a unique combination of plasma proteins, hyaluronic acid - a natural component of knee synovial fluid, and a fast-acting analgesic, JTA-004 intends to provide added lubrication and protection to the cartilage of the arthritic joint and to alleviate osteoarthritic pain and inflammation. Positive Phase IIb efficacy results in patients with knee osteoarthritis showed a statistically significant improvement in pain relief compared to a leading viscosupplement.

Bone Therapeutics’ core technology is based on its cutting-edge allogeneic cell therapy platform with differentiated bone marrow sourced Mesenchymal Stromal Cells (MSCs) which can be stored at the point of use in the hospital. Currently in pre-clinical development, BT-20, the most recent product candidate from this technology, targets inflammatory conditions, while the leading investigational medicinal product, ALLOB, represents a unique, proprietary approach to bone regeneration, which turns undifferentiated stromal cells from healthy donors into bone-forming cells. These cells are produced via the Bone Therapeutics’ scalable manufacturing process. Following the CTA approval by regulatory authorities in Europe, the Company has initiated patient recruitment for the Phase IIb clinical trial with ALLOB in patients with difficult tibial fractures, using its optimized production process. ALLOB continues to be evaluated for other orthopedic indications including spinal fusion, osteotomy, maxillofacial and dental.

Bone Therapeutics’ cell therapy products are manufactured to the highest GMP (Good Manufacturing Practices) standards and are protected by a broad IP (Intellectual Property) portfolio covering ten patent families as well as knowhow. The Company is based in the BioPark in Gosselies, Belgium. Further information is available at .

For further information, please contact:

Bone Therapeutics SA

Miguel Forte, MD, PhD, Chief Executive Officer

Jean-Luc Vandebroek, Chief Financial Officer

Tel: +32 (0)71 12 10 00

For Belgian Media and Investor Enquiries:

Bepublic

Catherine Haquenne

Tel: +32 (0)497 75 63 56

International Media Enquiries:

Image Box Communications

Neil Hunter / Michelle Boxall

Tel: +44 (0)20 8943 4685

cy / cy

For French Media and Investor Enquiries:

NewCap Investor Relations & Financial Communications

Pierre Laurent, Louis-Victor Delouvrier and Arthur Rouillé

Tel: +33 (0)1 44 71 94 94

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