Celsion Corporation and Zhejiang Hisun Pharmaceutical Company Enter Into Technology Development Agreement for ThermoDox® for

   Celsion Corporation and Zhejiang Hisun Pharmaceutical Company Enter Into
    Technology Development Agreement for ThermoDox® for the Greater China

Companies Also Anticipate 60-Day Exclusive Option Period for Commercial
License for ThermoDox® for China Market

PR Newswire

LAWRENCEVILLE, N.J. and TAIZHOU CITY, China, Jan. 22, 2013

LAWRENCEVILLE, N.J. and TAIZHOU CITY, China, Jan. 22, 2013 /PRNewswire/
--Celsion Corporation (NASDAQ: CLSN), a leading oncology drug development
company, and Zhejiang Hisun Pharmaceutical Company Ltd. (SSE Code: 600267), a
leading Chinese pharmaceutical company, today announced that they have entered
into a technology development agreement for ThermoDox® for the greater China
territory. Under the terms of the agreement, Hisun will pay $5 million to
Celsion immediately, while Celsion will provide Hisun with support for its
ThermoDox® manufacturing development program. This payment is non-refundable
and comes in advance of Celsion's expected reporting of results from its
pivotal Phase III trial (the HEAT Study) in hepatocellular carcinoma (HCC),
also known as primary liver cancer later this month.

In addition, the companies anticipate signing an agreement in which Celsion
provides Hisun an exclusive option to license ThermoDox® for the Greater China
market, which includes China, Hong Kong and Macau. This option period will be
secured by a second $5 million payment that must be received by Celsion from
Hisun within 60 days after execution of the Technology Development Agreement.
The key provisions of the anticipated license agreement have been negotiated
and agreed to by the parties and provide a basis for a definitive contract.
These provisions are:

  oA credit of $10 million from the two payments ($5 million for the
    technology development agreement and $5 million for the exclusive option)
    toward a non-refundable upfront license payment of $25 million due to
    Celsion at signing of the definitive license agreement.
  oAn approximate 10 year total value to Celsion of well over several hundred
    million US dollars, which includes:

       o$55 million in upfront milestone and regulatory milestone payments
         within the next 18 months;
       o$45 million in milestone payments for reaching certain sales targets;
       oEscalating double-digit royalties on net sales of ThermoDox® in the
         Greater China Territory.

  oHisun will serve as both the manufacturer and distributor of the
    ThermoDox® drug product for the Greater China Territory, and also take
    responsibility for local regulatory activities including submitting
    approvals in China to the state Food and Drug Administration (sFDA).

"Pursuing this arrangement with Hisun allows us to evaluate the fastest path
to the China market, potentially the largest opportunity in the world for
ThermoDox®. A long-term partnership will provide the greatest synergies with
respect to sales, marketing, distribution, and manufacturing, which could
ensure significant value to the ThermoDox® asset," said Michael H. Tardugno,
Celsion's President and Chief Executive Officer. "In addition, this
partnership provides Hisun and Celsion with immediate access to an accelerated
pathway for sFDA review and approval of ThermoDox®, a business strategy with
exceptional potential to serve China's HCC population, and strong,
uncompromised economics for both parties."

Mr. Hua Bai, CEO and Chairman of Hisun, stated, "We are extremely excited to
pursue this arrangement with Celsion. Hisun is well positioned to provide
ThermoDox® – potentially one of the most important and innovative drugs to
treat HCC to patients in China, the world's largest market. China is one of
the countries with the highest HCC incidence and mortality and, up until now,
there has not been any standard of care for treating HCC in China. This
joint effort will most likely facilitate the local manufacturing and
commercial launch in China, thereby providing physicians with more options for
better care and prolonging the survival of HCC patients. In the meantime, we
are also hopeful that this collaboration will enable Hisun to increase its
focus on more innovative drugs. Given the fact that we are a leading Chinese
pharmaceutical company with international standards of R&D and manufacturing
technology, Hisun will seek to manufacture and supply the global markets,
along with distribution exclusivity in Greater China. This venture will help
spearhead Hisun's globalization in manufacturing and commercialization

The HEAT Study is being conducted under a U.S. Food and Drug Administration
(FDA) Special Protocol Assessment (SPA), has received FDA Fast Track
Designation, and has been designated as a Priority Trial for liver cancer by
the National Institutes of Health. The European Medicines Agency (EMA) has
confirmed the HEAT Study is acceptable as a basis for submission of a
marketing authorization application (MAA). ThermoDox® has been granted orphan
drug designation in both the U.S. and Europe. In addition to meeting the U.S.
FDA and European EMA enrollment objectives, the HEAT Study has also enrolled a
sufficient number of patients to support registration filings in China, South
Korea and Taiwan, three of the largest potential markets for ThermoDox® around
the world.

About Primary Liver Cancer

Primary liver cancer is one of the most deadly forms of cancer and ranks as
the fifth most common solid tumor cancer. The incidence of primary liver
cancer today is approximately 26,000 cases per year in the United States,
approximately 40,000 cases per year in Europe and is rapidly growing worldwide
at approximately 750,000 cases per year, 55 percent of which are in China, due
to the high prevalence of Hepatitis B and C in developing countries. . The
World Health Organization estimates that primary liver cancer may become the
number one cancer worldwide, surpassing lung cancer, by 2020.

The standard first-line treatment for liver cancer is surgical resection of
the tumor; however, 90% of patients are ineligible for surgery. Radio
frequency ablation (RFA) has increasingly become the standard of care for
non-resectable liver tumors, but the treatment becomes less effective for
larger tumors. There are few non-surgical therapeutic treatment options
available as radiation therapy and chemotherapy are largely ineffective in the
treatment of primary liver cancer.

About ThermoDox® and the Phase III HEAT Study

ThermoDox® is a proprietary heat-activated liposomal encapsulation of
doxorubicin, an approved and frequently used oncology drug for the treatment
of a wide range of cancers. In the HEAT Study, ThermoDox® is administered
intravenously in combination with RFA. Localized mild hyperthermia (39.5 - 42
degrees Celsius) created by the RFA releases the entrapped doxorubicin from
the liposome. This delivery technology enables high concentrations of
doxorubicin to be deposited preferentially in a targeted tumor.

For primary liver cancer, ThermoDox® is being evaluated in a 700 patient
global Phase III study at 79 clinical sites under an FDA Special Protocol
Assessment. The study is designed to evaluate the efficacy of ThermoDox® in
combination with RFA when compared to patients who receive RFA alone as the
control. The primary endpoint for the study is progression-free survival (PFS)
with a secondary confirmatory endpoint of overall survival. Additional
information on the Company's ThermoDox® clinical studies may be found at

About Celsion Corporation

Celsion is a leading oncology company dedicated to the development and
commercialization of innovative cancer drugs including tumor-targeting
treatments using focused heat energy in combination with heat-activated
liposomal drug technology. Celsion has research, license, or commercialization
agreements with leading institutions including the National Institutes of
Health, Duke University Medical Center, University of Hong Kong, the
University of Pisa, the UCLA Department of Medicine, Kyungpook National
University Hospital and the Beijing Cancer Hospital. For more information on
Celsion, visit our website: http://www.celsion.com.

About Zhejiang Hisun Pharmaceutical Company Ltd.

Founded in 1956, the mission for Zhejiang Hisun Pharmaceuticals Co., Ltd.
(stock code 600267) hereinafter called "Hisun" is to be persistent in
pharmaceutical innovation for humans' well-being. The company's vision is to
become a widely respected global pharmaceutical provider. It focuses on the
integration of pharmaceutical research and development (R&D) with production
resources in order to provide its global customers with outstanding products
and services. To date, over 40 of the company's products have passed
certification by many regulatory agencies such as the FDA (U.S.), EDQM (EU),
TGA (Australia) , and KFDA (Korea) and are sold to more than 30 countries

Celsion wishes to inform readers that forward-looking statements in this
release are made pursuant to the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Readers are cautioned that such
forward-looking statements involve risks and uncertainties including, without
limitation, unforeseen changes in the course of research and development
activities and in clinical trials by others; possible acquisitions of other
technologies, assets or businesses; possible actions by customers, suppliers,
competitors, regulatory authorities; and other risks detailed from time to
time in the Company's periodic reports filed with the Securities and Exchange

Celsion Investor Contact
Jeffrey W. Church
Senior Vice President – Corporate
Strategy and Investor Relations

Hisun Investor Contact
Madam Zhang Wei

SOURCE Celsion Corporation

Website: http://www.celsion.com
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