Mr. Mariusz Olejniczak reports

WPD PHARMACEUTICALS ANNOUNCES AMENDED SUBLICENSE AGREEMENT WITH MOLECULIN BIOTECH FOR WP1066, WP1122 AND ANNAMYCIN DRUG CANDIDATES

WPD Pharmaceuticals Inc. has entered into an amended and restated sublicence agreement with Moleculin Biotech Inc.

On March 22, 2021, WPD entered into the amendment of its February, 2019, sublicence from Moleculin of certain intellectual property rights, including the rights to Moleculin's Annamycin, WP1066 and WP1122 portfolios to research, develop, manufacture, use, import, offer and sell products derived from these portfolios in the field of human therapeutics in 29 countries, including some countries in Europe.

In consideration of the sublicence, WPD agreed that it must use commercially reasonable efforts to develop and commercialize products in the territories. The term commercially reasonable efforts has been amended to mean expenditure by WPD of at least $2.5-million (U.S.) during the first four years of the agreement on the research, development and commercialization of products, and at least $1-million (U.S.) in each of the four years thereafter. WPD also will pay to Moleculin a royalty on products sold.

The amendment extends the period of time which WPD has to expend the research, development and commercialization costs to eight years from February, 2019, and increases the amounts required to be spent over that longer period. It also provides a process to extend the period time further, if necessary.

Mariusz Olejniczak, chief executive officer of WPD, commented: "We are very pleased with the amendments to our sublicence agreement with Moleculin. The extension of time for us to make the necessary expenditures and to keep our sublicence in good standing gives us the opportunity to properly prepare our development plans and to raise additional funds. As well, having a longer time frame means that there may be further developments on these important drug candidate portfolios that we can build on to progress towards commercialization."

About WPD Pharmaceuticals Inc.

WPD is a biotechnology research and development company with a focus on oncology and virology, namely research and development of medicinal products involving biological compounds and small molecules. WPD has licensed in certain countries 10 novel drug candidates with four that are in the clinical development stage. These drug candidates were researched at medical institutions, and WPD currently has continuing collaborations with Wake Forest University, leading hospitals and academic centres in Poland.

WPD has entered into licence agreements with Wake Forest University Health Sciences and sublicence agreements with Moleculin Biotech Inc. and CNS Pharmaceuticals Inc., respectively, each of which grant WPD an exclusive, royalty-bearing sublicence to certain technologies of the licensor. Such agreements provide WPD with certain research, development, manufacturing and sales rights, among other things. The sublicence territory from CNS Pharmaceuticals and Moleculin Biotech includes for most compounds 30 countries in Europe and Asia, including Russia.

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