Dr. Steven Theriault reports

CYTOPHAGE REPORTS Q2 FINANCIALS INCLUDING BUSINESS UPDATE FOR FIRST HALF OF 2024

Cytophage Technologies Ltd. has filed its financial results for the second quarter (Q2) ended June 30, 2024. The financial statements and the accompanying management discussion and analysis are accessible under the company's profile at SEDAR+.

Q2 2024 business highlights

• Cytophage moved into its new 20,000-square-foot RD (research and development) and production facility that includes state-of-the-art labs and manufacturing. A grand opening for the new global headquarters is expected to take place in the fall. The company anticipates that, once established, this will be one of the premier phage manufacturing centres in North America capable of developing a wide variety of phage therapies for both animal and human health sectors.
• Development and testing of lyophilized tablets advanced to a final stage in the second quarter. These freeze-dried/stabilized tablets represent a simplified application option for bacteriophages that can treat multiple types of bacteria such as E. coli and Salmonella throughout the life cycle of a chicken. Cytophage believes the lyophilized tablet solution is a unique and innovative product, offering increased flexibility, stability and application versatility that has the potential to radically transform phage delivery within the poultry industry.
• Cytophage signed a letter of intent (LOI) with a leading Pan-Asian industrial agrifood company headquartered in Singapore. The LOI outlines a collaboration pathway between Cytophage and this company that operates in six countries and derives approximately 80 per cent of its multibillion-dollar revenue from poultry operations. Cytophage products could be used to improve production numbers by decreasing bacterial loads throughout the life cycle of chickens. Trials are expected to commence in Q4 of 2024 (see press release June 20, 2024).
• Cytophage received updates on the bacteriophage human trial at The Ottawa Hospital where Cytophage bacteriophages were used to treat a patient with an antibiotic resistant prosthetic joint infection. The patient had previously undergone 10-plus surgeries and was facing a potential leg amputation at the waist. The condition of the patient steadily improved after several weeks of treatment with Cytophage phages (see press release April 2, 2024). With the success of this trial established, Cytophage looks to provide phages for a second patient suffering from a drug-resistant prosthetic joint infection in the fall.
• Cytophage held its first annual general meeting where all resolutions passed with the approval of the shareholders. New board member Michael Sorkin was elected to join the board (see press release June 27, 2024).

Cytophage chief executive officer Dr. Steven Theriault commented: "Cytophage's second quarter saw the expansion of our commercialization efforts, specifically with respect to phage products for poultry producers in the Asian markets, where we expect to begin trials later this year. While the animal health sector remains our focus for commercial advancements, we are strongly encouraged by the results of the human trial at The Ottawa Hospital. As we continue to observe the recovery progress of the patient that was treated with our bacteriophages, we believe that the positive results could pave the way for further such single subject clinical trials very soon."

Q2 2024 financial highlights

• Cash and cash equivalents balance, as of June 30, 2024, was $3,654,000, compared with $5,567,000 as of March 31, 2024. During Q2 2024, the company's incurred scheduled expenditures and investments related to the buildout of its new facility, including leasehold improvements and laboratory and manufacturing set-up. As of June 30, 2024, Cytophage has largely completed the majority of spending associated with its new facility. The company is focused on closely managing its expenditures and cash resources, while also pursuing additional non-dilutive funding sources.
• Operating expenses, as of the three-month ended June 3, 2024, were approximately $1,297,000 compared with $1,369,000 for the period ended June 30, 2023.
• Net loss was $1,246,000 for the second quarter of 2024, compared with $1,158,000 for the second quarter of 2023.

About Cytophage Technologies Ltd.

Cytophage Technologies is a pioneering biotechnology company dedicated to bacteriophage research, product development and commercialization. Committed to addressing the global challenge of antibiotic resistance, Cytophage advances innovative products that harness the power of bacteriophages to combat bacterial infections affecting human health, animal health and food security.

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