More Investor Questions Answered

Due to the overflow of investor curiosity following our webinar last week, we have decided to share some of their questions.

Here are a few highlights from our live Q&A:

Q: Do you envision a time when the use of CYT-108 would become part of the treatment for injuries?

A: Yes. CYT-108 has the potential to treat any disease caused or exacerbated by hyper inflammation caused by proteases and cytokines (which are involved in many disease processes). We have developed a multi-purpose platform technology that is currently targeting osteoarthritis but can eventually be applied to other musculoskeletal diseases and more. We have designed a preclinical study to examine CYT-108's ability to inhibit lung inflammation caused by excess cytokine signaling, like in the case of COVID or ARDS. Our A2M engineering platform allows us to make small genetic tweaks to the core A2M protein to enhance its specificity for the precise proteases and cytokines that are involved in a specific disease.

Q: What are the potential side effects of inhibiting the proteases that cause osteoarthritis?

A: Based on our two pre-clinical trials on animals, we have not observed any side effects, such as organ damage or an immune response. All of the data we have so far indicates that the CYT-108 is safe.

Q: Can you speak to the current valuation and various exit outcome possibilities compared to other recent similar offerings?

A: Our current valuation of $60 million is based on forecasted cash flows over CYT-108’s 17-year patented lifetime, assuming a 1% market capture, $1,500 per treatment, and two treatments per year. These cash flows are summed up and then discounted to the present, and adjusted for the risk inherent in the FDA regulatory process. CYT-108 is easily a $1B annual drug due to the enormous market and inferiority of current treatment options. This is a very conservative estimate.

Q: Can you explain how CYT-108 would reverse osteoarthritis?

A: Treatment with CYT-108 shifts the balance within the joint from catabolism (or destruction of tissue) of the cartilage to anabolism (or production of tissue)- allowing the the joint to "get a grip" and begin its natural, reparative processes (such as the synthesis of new cartilage tissue). By shifting the balance in favor of the body’s ability to regenerate, CYT-108 stops the degrative forces and allows the body to repair the articular cartilage naturally.

You can watch a replay of the Cytonics investor webinar here or visit our page to secure your investment now.