M Pharmaceutical Inc.

M Pharmaceutical Inc.

November 23, 2015 07:00 ET

REPEAT: M Pharmaceutical Enters Into Letter of Intent to Acquire Reformulated Orlistat for Weight Loss from Chelatexx, LLC

- Acquisition would add a novel weight loss product to M Pharma's pipeline

- C-103 is a patented reformulation of FDA-approved orlistat (Xenical® and alli®)

- Chelatexx asset acquisition part of a comprehensive reorganization of M Pharmaceutical to focus its efforts on development of oral products for obesity treatment and weight loss

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 23, 2015) - M Pharmaceutical, Inc. (CSE:MQ)(OTCQB:MPHMF)(FRANKFURT:T3F2), (the "Company" or "M Pharma"), today announced it has entered into a letter of intent to acquire assets from Chelatexx, LLC related to a reformulated version of orlistat (product "C-103"). The addition of C-103 provides a novel weight loss pharmaceutical product to the M Pharma pipeline. Indicative terms of the letter of intent include an up-front cash payment, 10 million common shares of M Pharmaceutical, and a low single-digit royalty on net sales. The transaction is subject to finalizing terms in a definitive agreement within the next 14 calendar days and certain closing conditions which are expected to conclude by January 2016.

Matthew Lehman, CEO of M Pharmaceutical, commented: "The acquisition of C-103 from Chelatexx, LLC is an exciting addition to the M Pharmaceutical pipeline. This product fits into our mission of developing innovative technologies for obesity with fewer side effects than currently available products."

Background information on Orlistat

Orlistat is currently marketed in prescription strength by Roche Laboratories, Inc. (Xenical® 120mg capsules) and in over-the-counter strength by GlaxoSmithKline Consumer Healthcare (alli® 60mg capsules). Orlistat has proven safe and effective in numerous clinical trials and remains the only FDA-approved weight management drug for a pediatric population (adolescents 12 years and older). Orlistat does not affect the central nervous system and it is not systemically absorbed, as compared to other approved weight management drugs.

Recent sales of orlistat have declined from its peak due to uncomfortable and well-publicized side effects of the product. The development goal of the C-103 reformulation is to maintain the proven efficacy of orlistat while minimizing or eliminating the undesirable side effects. Chelatexx, LLC holds issued U.S. patents covering C-103 technology until 2030. The U.S. Food and Drug Administration has confirmed in writing that C-103 is eligible for 505(b)(2) approval in the U.S., under which the FDA is permitted to rely, for approval of the new drug, on data not developed by the applicant - such as published literature or the FDA's finding of safety and/or effectiveness of a previously approved drug product. The Company cautions that there is no guarantee that C-103 will achieve its development goals and that there are no guarantees that C-103 will be approved by any health regulatory agency.

Corporate Strategy Update

M Pharma also announced a significant reorganization of its priorities to concentrate on the development of its two oral products - C-103 and Trimeo - for obesity treatment and weight loss. M Pharma believes that both C-103 and Trimeo have potential to address the growing obesity problem. In conjunction with the Company's reorganization, it will minimize continued investment in its two earlier stage technologies Trimtec and eMosquito and review potential opportunities to divest or partner these technologies.

About M Pharmaceutical Inc.

Formed in early 2015, M Pharmaceutical Inc. is a clinical-stage company developing innovative technologies for obesity and weight management. In addition to the intended acquisition of C-103 from Chelatexx, LLC, the Company has exclusive rights to three technologies invented by Dr. Martin Mintchev at the University of Calgary: (1) Trimeo capsules, temporary controllable pseudobezoars for non-invasive gastric volume reduction for the treatment of obesity; (2) Trimtec, gastrointestinal neurostimulators for the treatment of obesity and gastroparesis; and (3) eMosquito wearable blood glucose monitor for diabetics.

M Pharmaceutical trades on the Canadian Securities Exchange (CSE) under the ticker symbol "MQ" as well as on the OTCQB as "MPHMF" and FWB (Frankfurt Stock Exchange) as "T3F2."

Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. This news release includes forward-looking statements with respect to the commercialization of the rights to the eMosquito, Trimeo and Trimtec biomedical technologies. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com and the Company's filings to the CSE at www.cnsx.ca. Such risk factors may cause the inability of the Company to successfully commercialize any of its biomedical technologies.

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