SOURCE: Arch Therapeutics, Inc.

Arch Therapeutics, Inc.

October 23, 2014 08:15 ET

Arch Therapeutics Negotiating a Collaboration Agreement With CURAM Centre for Research in Medical Devices

Collaboration Agreement Would Provide Additional Technical and Financial Support for Company's Research and Development Program, Including Clinical and Regulatory Activities Targeting Planned CE Mark

WELLESLEY, MA--(Marketwired - Oct 23, 2014) -  Arch Therapeutics, Inc. (OTCQB: ARTH) ("Arch" or the "Company"), developer of the AC5 Surgical Hemostat™, announced today that it is negotiating a potential collaboration agreement with CÚRAM Centre for Research in Medical Devices ("CÚRAM"). CÚRAM is a major new national research center being established at the National University of Ireland Galway (NUIG) in Galway, Ireland, as part of a six-year grant from the Irish government, which was announced this week. Proceeds, which are expected to be released by the Irish government in January 2015, are intended to fund collaborative work performed by CÚRAM and its planned industry partners which, subject to the execution of a definitive collaboration agreement, would include Arch. Industry partners, which will benefit by provision of highly skilled personnel, significant grant funding, and available infrastructure support, will provide capital to match a portion of the government funds designated for their respective R&D programs.

Arch and leaders of CÚRAM have previously worked closely together on other initiatives. In addition, the partnership with CÚRAM would provide additional financial support for Arch's research initiatives, which would be provided on a matching basis at a rate and in a maximum amount to be set forth in the definitive collaboration agreement. The Company's proposed partnership with CÚRAM is conditioned upon the execution of a definitive collaboration agreement, the approval of such final collaboration agreement by the Company's Board of Directors, and raising additional funds to finance the Company's anticipated obligations under the collaboration agreement. Additional details will be forthcoming in the near future.

Arch Therapeutics' Chief Executive Officer, Terrence W. Norchi, MD, noted, "The Irish government funding to and our potential partnership with CÚRAM represents a direct, forward-looking approach to the changing global dynamics in both industry and academic R&D, presenting a unique opportunity for both Arch and CÚRAM. Having worked for several years with leaders of CÚRAM, we are confident that they are skilled in all relevant stages of R&D, and that they understand industry needs. In turn, we believe CÚRAM will benefit from access to Arch's world-class expertise and its advanced platform technology."

Dr. Norchi further noted, "We believe that building a larger R&D footprint in Ireland is a positive step forward. Arch will continue to work with key industry partners en route to commercializing its first product. The planned partnership with and anticipated financial commitment by CÚRAM would provide us with an opportunity to re-allocate resources and timing of activities in a manner that is enhanced by the additional available capital and personnel. Arch intends to launch its first commercial product in Europe next year, pending successful completion of the required clinical trial and receipt of regulatory approval. We look forward to providing updates in the near future."

Dr. Abhay Pandit, Director of CÚRAM, said, "CÚRAM has come along at a pivotal time in the development of the medical device industry in Ireland and Europe, as there are large markets with unmet clinical needs. CÚRAM aims to invigorate the technology that exists. Our significant collaboration with industry partners is very exciting. Arch Therapeutics represents a highly valued partner. We look forward to providing our expertise and grant resources to Arch's R&D program as they move nearer to launching their first product in Europe. The capital, which will be delivered to CÚRAM by Science Foundation Ireland, is provided by The Department of Jobs, Enterprise, and Innovation. We are grateful to these two institutions for their support."

The announcement by the Irish Government's Department of Jobs, Enterprise, and Innovation may be found here: http://www.djei.ie/press/2014/20141020a.htm.

The announcement by NUIG may be found here: http://www.nuigalway.ie/about-us/news-and-events/news-archive/2014/october2014/nui-galway-centre-stage-in-245-million-investment-announcement--by-minister-bruton-and-minister-english.html

About Arch Therapeutics, Inc.

Arch Therapeutics, Inc. is a medical device company developing a novel approach to stop bleeding (hemostasis) and control leaking (sealant) during surgery and trauma care. Arch is developing products based on an innovative self-assembling peptide technology platform to make surgery and interventional care faster and safer for patients. Arch's flagship development stage product candidate, known as the AC5 Surgical Hemostatic Device ™, is being designed to achieve hemostasis in minimally invasive and open surgical procedures.

About CÚRAM

CÚRAM is engaged in research to radically improve health outcomes for patients by developing innovative implantable 'smart' medical devices to treat major unmet medical needs. This research will position Ireland as the leader in developing medical device technologies, which will provide affordable transformative solutions for chronic diseases.

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements" as that term is defined in Section 27(a) of the Securities Act of 1933, as amended, and Section 21(e) of the Securities Exchange Act of 1934, as amended. Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, our plans to enter into a collaboration agreement with CÚRAM, references to novel technologies and methods, our business and product development plans and projections, or market information. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Factors that may affect both the timing of and the Company's ability to execute a collaboration agreement with CÚRAM include, but are not limited to, the success or failure of negotiations, Board approvals, trade, legal, social, political and economic risks, and the Company's ability to raise additional capital to perform its expected obligations under the collaboration agreement. Other factors that could also cause actual results to differ from those projected in any forward-looking statements include, but are not limited to, the inherent uncertainties associated with developing new products or technologies and operating as a development stage company, our ability to retain important members of our management team and attract other qualified personnel, our ability to raise the additional funding we will need to continue to pursue our business and product development plans, our ability to develop and commercialize products based on our technology platform, and market conditions. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents we file with the SEC, available at www.sec.gov.

On Behalf of the Board,
Terrence W. Norchi, MD
Arch Therapeutics, Inc.

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