Mr. Bill Jackson reports

VECTOR SCIENCE & THERAPEUTICS CORP., LYOGENESIS PLUS AND WYNN PHARMACEUTICALS ANNOUNCE STRATEGIC COLLABORATION TO DEVELOP AND MANUFACTURE CRITICAL CARE MEDICAL PRODUCTS

LyoGenesis Plus 1 LLC, a company related to Vector Science & Therapeutics Corp., and Wynn Pharmaceuticals LLC have entered into a memorandum of understanding (MOU) to collaborate on the development and manufacture of a new line of IV (intravenous) bag and vial adaptor products.

These products focus on drugs and drug substances on the U.S. Food and Drug Administration short list, which are eligible for expedited IND (investigational new drug) review. Production is expected to begin within the next three to four months, starting with the IV bag and vial adaptor products, an initial opportunity that, per Wynn Pharmaceuticals, may exceed $20-million per year. Across the full product line, the companies expect to scale to $64-million in annual revenue over the first five years. Under the collaboration contemplated by the MOU, Vector is expected to manage customer and sales relationships while LyoGenesis Plus serves as the contract manufacturer, with Vector anticipated to receive approximately 75 per cent of sales proceeds from this product line and LyoGenesis Plus retaining approximately 25 per cent in addition to reimbursement of its manufacturing costs, in each case subject to the terms of the definitive agreements described below. Because this arrangement allows Vector to generate revenue from its customer and sales relationships without bearing the cost or capital investment of manufacturing, management believes it represents a high-margin, capital-efficient revenue opportunity for Vector.

Under the terms of the MOU, the companies intend to negotiate and enter into a definitive development agreement and a related supply agreement, under which Vector will manage customer relations and sales and LyoGenesis Plus will serve as the manufacturer for new products designed to support delivery of critical medications in hospital and other medically supervised settings.

"This collaboration is a strong strategic and financial fit for Vector," said William Jackson, chief executive officer of Vector Science and CEO of LyoGenesis Plus. "It allows Vector to generate a new, high-margin revenue stream through our customer and sales relationships, while LyoGenesis Plus expands its manufacturing capabilities into new areas of critical care. We're excited to bring our combined development and manufacturing expertise together with Wynn's deep knowledge of the critical medications market."

"Partnering with LyoGenesis Plus and Vector allows us to pursue innovative product development with a manufacturing partner that has the technical expertise to bring these products to market," said Paul Sudhakar, CEO of Wynn Pharmaceuticals. "We look forward to working closely with their team as we move toward a definitive agreement."

The companies expect to finalize the terms of their collaboration through subsequent definitive agreements over the next couple of weeks. Additional details will be shared as the partnership progresses.

About Vector Science & Therapeutics Corp.

Vector Science is a medical technology and therapeutic delivery company. Its intellectual property portfolio spans advanced transdermal delivery, precision catheter systems, localized pain management, regenerative medicine, pancreatic oncology, smart wound care, lyophilized pharmaceutical systems and next-generation therapeutic delivery. Vector is headquartered in Mequon, Wis.

About LyoGenesis Plus 1 LLC

LyoGenesis Plus is a contract manufacturer specializing in the design, development, testing and manufacture of pharmaceutical products, including drug substances such as peptides. LyoGenesis Plus is a company related to Vector Science.

About Wynn Pharmaceuticals LLC

Wynn Pharmaceuticals is a supplier of critical medications used to treat patients in medically supervised settings.

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