Spin-off of Prostate Cancer Collaborative Treatment Project

Hofseth Biocare ASA

Hofseth Biocare ASA

Hofseth Biocare ASA (“HBC” or the “Company”) today announced its decision to transfer its Prostate Cancer Co-Therapeutic Project (the “Project”) to a new US corporation, HBC Immunology Inc. (“HBCI”). HBCI plans to develop combination therapy for prostate cancer and other potential indications related to abnormal cellular iron regulation. Transfer requires final agreement.

This project is the result of HBC’s core research and development focused on the health benefits of products and ingredients through Gene Modulation Mechanisms of Action (GEMM™).

Further discovery work at HBC has yielded several potential drug leads, as summarized in a November 5, 2021 stock exchange notice. (New drug candidate led by HBC) And this project was derived from the peptides contained in ProGo® (SPH – also known as Soluble Protein Hydrolysate). From these peptides, two lead peptide candidates for preclinical work were identified, and these lead peptides were modified to enhance their overall profile.

HBC assigns provisional patents and patent applications to HBCI and provides a license to use certain of HBC’s intellectual property in the field of oncology. In exchange for these contributions, HBC will receive 75% of HBCI’s initial shares.

HBC’s Chief Scientific Officer, Dr. Bomi Framrose, through his company, GPH Biotech LLC. Own 25% of the initial shares. . HBC and HBCI will also enter into an agreement under which HBCI will lease, for a fee, certain personnel deemed important to the positive development of the project. HBCI will grant options to certain of his HBC personnel who contribute to the project, as well as establish a stock option program that will entitle him for four years for future employees, directors and consultants.

After the initial share issuance and share grant, HBCI may seek to complete financing from outside investors on terms mutually agreeable by HBC and GPH Biotech LLC. HBC expects to continue to own more than 50% of his HBCI shares on a fully diluted basis after the first two rounds of external funding.

HBC will continue to own a majority of the issued shares of HBCI and a monetary interest representing its ownership interest, but HBCI will not be consolidated with HBC for accounting purposes.

HBC consulted an external advisor, GPH Biotech LLC. and other key stakeholders, and have entered into an initial value of S$12.50 for HBCI, including the transferred IP, based on a risk-adjusted royalty approach. HBC has a patent and patent application fee of 1.8 MNOK as of approximately December 31, 2022. This means that the spin-off of the project to HBCI will bring an economic benefit of approximately 21 MNOK to HBC in the second quarter of 2023.

The current status of the project is that HBC can be combined with standard-of-care hormonal therapy (bicalutamide and enzalutamide) to enhance prostate lethality and the development of newly identified individual peptides that regulate iron metabolism in prostate cancer cells. The successful completion of the in vitro analysis. Cancer cell lines representing various stages of prostate cancer. Initial results were published in Marine Drugs (March 28, 2022) and the completed in-vitro study was presented in his Pharma R&D in February 2023.

HBC believes that spinning out the project in the United States to another entity will increase the chances of successful commercial application development of the project. HBCI’s proximity to Stanford University and the Bay Area of ​​California should facilitate access to talented people, R&D resources, and future funding.

HBC CEO John Olaf Odegard said:After years of scientific discovery hard work by Professor Bomi Framrose and his team, it now demonstrates the potential to discover novel drug leads for a wide range of unmet health needs in oncology I am happy that you are starting a new journey. At HBC, we believe our sustainability story is second to none. Especially if he can show that fresh Atlantic salmon by-products that some would consider waste can be taken and turned into new medicines. While this was an ambitious goal, early published data on the combined therapeutic effects of our peptides in combination with existing “best standard of care” (BSC) in early and late stage prostate cancer showed extraordinary results. I can see the possibilities. . The idea is that this peptide could help improve the quality of life of prostate cancer patients, extend their lifespan, and actually reduce overall mortality.

HBC CSO Dr Bomi Framrose said:Iron metabolism in cancer is an important driver of tumor growth and spread, and is increasingly recognized as a means by which cancer escapes the effects of therapy. Modulation of FTH1 by our peptide lead structure has exciting potential to enhance the efficacy of cancer therapy and improve the health and wellness of cancer patients.. ”

For more information, please contact:
James Berger, HBC CCO
Phone: +41 79 950 1034
Email: jb@hofsethbiocare.no

John Olaf Odegard, HBC CEO
Phone: +47 936 32 966
Email: joo@hofsethbiocare.no

About HBC:
HBC is a Norwegian supplier of consumer and pet health ingredients and an incubator for new pharmaceutical leads. Research is ongoing to identify individual elements within the composition that modulate inflammation and immune responses, with preclinical studies being conducted in multiple clinics and university laboratories. Leading clinical and preclinical candidates are focused on developing oral therapies for inflammatory diseases caused by eosinophils (a type of white blood cell). Clinical trials with this oil are underway to improve eosinophilic asthma, COPD (“smoker’s lungs”) and lung inflammation in COVID-19. Other studies have shown that a special formulation of soluble protein hydrolyzate (SPH, also known as ProGo®) protects the gastrointestinal (GI) system from inflammation (including ulcerative colitis and orphan necrotizing enterocolitis). It is focused on use as a medical food. Helps treat IBD and iron deficiency anemia.

The company is founded on the core values ​​of sustainability, optimal use of natural resources and full traceability. Innovative hydrolysis technology allows HBC to preserve the lipid, protein and calcium quality of fresh salmon trimmings. HBC is headquartered in Ålesund, Norway, with offices in Oslo, London, Zurich, Ningbo, New Jersey and Palo Alto.

HBC is listed on the Oslo Bors Stock Exchange under the ticker ‘HBC’. For more information on HBC, please visit hofsethbiocare.com.

This information is considered inside information under the EU Market Abuse Regulation (MAR) and is subject to disclosure requirements under Article 17 of the MAR and Articles 5-12 of the Norwegian Securities Act.

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