Dr. Don Cilla reports

APPILI THERAPEUTICS' BIODEFENSE VACCINE CANDIDATE ATI-1701 IS AWARDED ADDITIONAL FUNDING FROM THE U.S. AIR FORCE ACADEMY

Appili Therapeutics Inc. has secured a commitment for the second stage of funding for ATI-1701 from the U.S. Air Force Academy (USAFA), which is working in partnership with the Defense Threat Reduction Agency (DTRA), the funding agency. ATI-1701 is the company's potential first-in-class vaccine candidate for the prevention of infection with Francisella tularensis, the causative agent of tularemia and a top-priority biothreat.

With this additional $6.6-million (U.S.) award, Appili's ATI-1701 program has been awarded the total $14-million (U.S.) in USAFA funding commitments announced on May 8, 2023.

"Being awarded this additional funding commitment from USAFA, in partnership with DTRA, further strengthens Appili's foundation in biodefense and enables us to scale up our efforts to develop an urgently needed vaccine for this serious bioterrorism threat," said Dr. Don Cilla, PharmD, MBA, president and chief executive officer of Appili. "This level of funding commitment should further support non-clinical, manufacturing and regulatory activities for ATI-1701 and should enable us to continue to advance this program towards an investigational new drug (IND)."

Appili will continue to oversee a comprehensive development program for ATI-1701, which includes non-clinical studies, manufacturing and regulatory activities to support an IND submission. In May, 2023, Appili was awarded the first stage of funding commitment from USAFA of $7.3-million (U.S.). The initial commitment was used to kick off ATI-1701 early-stage development and regulatory activities, which are currently continuing. Under the terms of the agreement with USAFA, Appili will be reimbursed for the subcontractor and vendor costs necessary to carry out the technical tasks. Additionally, Appili will be reimbursed for direct labour costs associated with budgeted program activities, including a portion of its overhead costs. Appili has also entered into an agreement with its lender, whereby, if needed, Appili has obtained temporary waivers of a minimum cash balance requirement. Further waivers may be necessary from time to time depending on the timing of reimbursements for expenses submitted to USAFA.

Corporate update

It is with great sadness that the company must announce that one of its directors, Rochelle Stenzler, has passed away. The company plans on seeking a new independent director to join its board in the coming months.

About ATI-1701

Appili is developing ATI-1701 as a vaccine to combat Francisella tularensis, which is classified by the U.S. National Institutes of Health (NIH) as a Category A pathogen, an organism that poses the highest risk to national security and public health. Estimated to be 1,000-fold more infectious than anthrax, experts consider the aerosolized form to have a high potential for use in a bioterrorism attack.

About Appili Therapeutics

Appili Therapeutics is an infectious disease biopharmaceutical company that is purposefully built, portfolio driven and people focused to fulfill its mission of solving life-threatening infections. By systematically identifying urgent infections with unmet needs, Appili's goal is to strategically develop a pipeline of novel therapies to prevent deaths and improve lives. The company is currently advancing a diverse range of anti-infectives, including a vaccine candidate to eliminate a serious biological weapon threat, a topical anti-parasitic for the treatment of a disfiguring disease, and a novel, easy-to-use, liquid oral formulation targeting parasitic and anaerobic infections. Led by a proven management team, Appili is at the epicentre of the global fight against infection.

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