Transaction Overview

•Propella Therapeutics licensed out its phase 2 osteoarthritis drug candidate, to Jiangsu Aosaikang Pharmaceutical for the Greater China region.

•美国Propella将其研发的骨关节炎产品在大中华区的独家开发、生产及商业化权利授权给奥赛康药业。

•Propella will receive an upfront payment and is entitled to receive regulatory and sales milestones, as well as royalties on future product sales.

•Propella将会收到首付款，注册和销售里程碑付款，以及一定比例的销售提成。

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

•雅法资本担任本次交易Propella的独家财务顾问。

PITTSBORO, N.C., and NANJING, JIANGSU April 7th, 2022 –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 its osteoarthritis product, 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 the osteoarthritis product 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 , four once-daily applications of the product reduced pain by 50% for 90 days in patients with moderate to severe OA of the knee.

（2022年4月7日，中国上海）江苏奥赛康药业有限公司（ 以下简称“ 奥赛康药业”）与美国 Propella Therapeutics, Inc.（以下简称“Propella”）于 2022 年 4 月 7 日签署授权协议（以下简称“协议”）。根据协议，奥赛康药业获得 Propella 用于骨关节炎疼痛治疗产品（以下简称“产品”）在中华人民共和国（包括中国大陆、香港特别行政区、澳门特别行政区）的独家开发、注册、生产和商业化的权利。奥赛康药业支付现金预付款及潜在开发和注册里程碑付款。如果该产品在授权区域成功获批上市，奥赛康药业将根据该产品的销售额支付一定的销售里程金，以及一定比例的销售提成。

“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. This product meets the significant unmet medical need and market demand for topical long-lasting pain relief for knee osteoarthritis. We will work closely with our partner to accelerate the development and commercialization process and to provide more effective medicines to patients as soon as possible."

About Propella

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.

 For more information regarding Propella, please visit www.propellatx.com

Propella 是一家位于美国特拉华州的创新型医药企业，致力于利用自身技术优势， 针对已知作用机制的活性药物， 设计和开发具有创新性、同类最优（best-in-class）的专利产品。研发理念是通过改造现有作用机制明确的产品，利用创新性技术进行优化，开发更加安全、更有效的产品。该研发策略有助于降低产品开发风险，缩短开发周期。 

About 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”. For more information regarding ASK Pharm, go to: ask-pharm.com

公司聚焦于消化、肿瘤、耐药菌感染、慢性病四大治疗领域，高度关注老年慢性疾病患者的临床未满足需求。骨关节炎是 60 岁以上人群中最常见的疾病之一，疼痛严重影响患者关节功能和生活质量。本次合作有助于加强和补充公司在慢性病领域的研发布局、丰富公司产品管线，并提升公司的核心竞争力，符合公司战略发展的需要。授权产品如未来在授权地区获批上市，将对公司业绩产生积极影响。

About YAFO Life Sciences

YAFO Life Sciences (YLS) is the healthcare division of YAFO Capital, which is focused on helping leading U.S. and European biopharma and MedTech companies to successfully enter the Asian market, especially in China and Japan. YLS also helps domestic pharma companies in global market research, targeting, and negotiation. Along with our local partners, YLS is dedicated to bridging the gap between global medical technologies and the Asian market. For more information regarding YAFO, please visit www.yafocapital.com

雅法全球医疗（YAFO Life Sciences）是雅法资本旗下的医疗大健康部门。专注于帮助具有“中国角度”的海外医药企业在中国的授权、战略合作及融资；以及为中国创新药企业提供海外市场授权机会、海外市场咨询、寻找和引进海外标的服务。我们致力于成为全球医疗技术对接中国市场与资本的桥梁。目前海外有超过三十位资深合伙人，深度覆盖美国、欧洲、日本、韩国等全球医疗创新区域。

Contact

Wendi Xiang  相文迪

Vice President

wxiang@yafocapital.com

联系我们：相文迪    Vice President ，wxiang@yafocapital.com