Mr. Brent Ashton reports

COVALON REPORTS ENCOURAGING FINDINGS FROM REAL WORLD EVIDENCE ANALYSIS COMPARING COLLAGEN DRESSINGS

Covalon Technologies Ltd. has made encouraging findings from a retrospective real-world evidence analysis of collagen advanced wound care dressings conducted with Intellicure LLC, a highly respected wound care data analytics firm.

The analysis used deidentified records from the U.S. Wound Registry and a Bayesian ordinal model to estimate the probability of reaching substantial granulation coverage at four, eight and 12 weeks in patients with diabetic foot ulcers and venous leg ulcers that presented with no granulation tissue at baseline. Wounds were treated with Covalon's collagen matrix dressing or one of five other competitive collagen dressings that together represent more than 60-per-cent share of the market segment. Granulation tissue formation is an important component of the wound healing process and is widely used as an indicator that a wound is on a healing trajectory.

The data set included 9,452 visit-level wound bed assessments from outpatient wound centres in the United States. In the analysis of diabetic foot ulcers, Covalon's collagen matrix dressing showed the highest probability of reaching greater than 50-per-cent granulation coverage at eight and 12 weeks. At 12 weeks, that probability was roughly three times the next highest comparator. The analysis for venous leg ulcers was directionally consistent.

"These findings are very encouraging because they reflect treatment on actual patients in real-world clinical settings and show a notable pattern over time," said Brent Ashton, chief executive officer of Covalon. "We believe these findings add to the growing body of evidence supporting further evaluation of Covalon's collagen matrix dressing and its role in the management of hard-to-heal wounds."

"Real world wound care data can help us answer clinically important questions that are difficult to evaluate through traditional studies alone," said Dr. Caroline Fife, chief medical officer of Intellicure LLC and executive director of the U.S. Wound Registry. "What makes these findings particularly interesting is the magnitude and consistency of the modelled granulation response observed with Covalon's collagen dressing. These results demonstrate the value of using large-scale clinical data to better understand how wound care products perform in actual practice."

This work was financed by Covalon Technologies and conducted by Intellicure LLC. The findings describe associations under statistical adjustment, are subject to residual confounding that cannot be fully excluded and no causal claim is made or implied. The findings reported above relate to collagen dressings without silver from Covalon and other manufacturers.

About Covalon Technologies Ltd.

Covalon is a leading medtech (medical technology) company dedicated to improving patient outcomes through innovative and compassionate medical products and technologies. The company's expertise spans advanced wound care, vascular access and surgical consumables, with a strong focus on enhancing healing, reducing health-care-associated infections (HAIs) and protecting skin integrity. The company's solutions are designed for patients and made for care providers. The company is listed on the TSX Venture Exchange (COV) and trades on the OTCQX Market (CVALF).

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