Dr. Howard Verrico reports

SIRONA BIOCHEM SIGNS BINDING TERM SHEET WITH COSMETIC DISTRIBUTOR IN CHINA

Sirona Biochem Corp. has completed a binding term sheet with Tinyi Trading Company for the distribution of its skin lightener, TFC-1067, following strong commercial interest after clinical trial results. Tinyi will have distribution rights within Asia as well as exclusive rights for China.

Tinyi, founded in 2006, is a well-established cosmetic ingredient distributor headquartered in Guangzhou, the cosmetic valley in China. Tinyi has extensive experience operating in the cosmetic market and relationships with numerous key cosmetic companies. These relationships are necessary to capitalize on the enormous opportunity to commercialize TFC-1067 within Asia. Tinyi will also assist Sirona in navigating the regulatory requirements and all necessary steps toward commercialization, including formulation and marketing. Sirona will remain responsible for the manufacture of TFC-1067. Finalizing the cost of local manufacturing will provide necessary information to complete the definitive agreement with Tinyi which is anticipated to be completed in the first quarter of 2020.

Tinyi was responsible for the clinical testing of TFC-1067 completed by a select group of its key cosmetic customers. The formulation used in the studies was the same as that used in Sirona's first clinical trial in the United States by Dr. Zoe Draelos. The clinical trial design protocols and testing was conducted independently of Sirona by the cosmetic companies in Guangzhou, China.

A total of 60 participants were involved in the studies conducted over several sites. All participants applied the formulation with TFC-1067 twice daily for four weeks. At the completion of the four-week study, 90 per cent of participants reported a brightening effect. A second set of trials with Sirona's improved formulation was also done which further demonstrated positive results and created a growing interest in using TFC-1067 in product lines.

TFC-1067 is a clinically proven safe and effective treatment to lighten areas of skin with increased pigmentation called dyschromia. The global skin lightening market is estimated to grow to $31.2-billion (U.S.) by 2024. Asia makes up the largest and fastest-growing segment of the market. A World Health Organization survey reported that nearly 40 per cent of women polled in China said they regularly use whitening products, many of which are toxic.

"We are excited to begin the process of entering the Asian market with Sirona's clinically proven and safe skin lightener TFC-1067. Although there is still work ahead before commercial launch, we have established a clear path forward," reported Dr. Howard Verrico, chief executive officer of Sirona Biochem. "We are pleased to extend our presence within the People's Republic of China beyond our successful relationship with Wanbang Biopharmaceuticals for our diabetic drug, TFC-039. We are steadily moving towards launching TFC-1067 in other territories in Asia in what is a global opportunity."

About Sirona Biochem Corp.

Sirona Biochem is a cosmetic ingredient and drug discovery company with a proprietary platform technology. Sirona specializes in stabilizing carbohydrate molecules with the goal of improving efficacy and safety. New compounds are patented for maximum revenue potential.

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