Avraham Pharmaceuticals Closes an Additional Investment Round of Approximately $6 Million by Yissum, Pontifax and Clal

  Avraham Pharmaceuticals Closes an Additional Investment Round of
  Approximately $6 Million by Yissum, Pontifax and Clal Biotechnology
  Industries

     The capital is intended for the on-going Phase II clinical trial of
   ladostigil, a novel molecule for treatment of mild cognitive impairment;
                   interim analysis is expected in H1 2014

Business Wire

YAVNE, Israel -- February 21, 2013

Avraham Pharmaceuticals Ltd. announced today that Yissum Research Development
Company Ltd., the technology transfer arm of the Hebrew University of
Jerusalem, Pontifax, Clal Biotechnology Industries (TASE:CBI) and the Technion
Research and Development Foundation Ltd. (TRDF) invested an additional $ 5.7
million in the Company. Following the current investment round, Yissum and
Integra Holdings, Yissum's biotech holdings company, will now hold 47% of the
shares of Avraham Pharmaceuticals.

Avraham Pharmaceuticals will use the newly invested capital to pursue the
advanced product development program for ladostigil, a novel molecule designed
for the treatment of mild cognitive impairment (MCI) and early stages of
Alzheimer's disease. The Company will continue to conduct its on-going
36-month, multi-centre, randomized, double-blind, placebo-controlled, Phase II
study to evaluate the safety and efficacy of ladostigil in patients diagnosed
with MCI. To date, 150 patients out of a total of 200 patients have already
been recruited in 16 centers in Germany, Austria and Israel. Interim analysis
of the study is expected in the first half of 2014. The primary end point of
the trial is to determine whether ladostigil can delay, or prevent the onset
of Alzheimer’s disease. The conversion to Alzheimer's disease will be
determined using the Clinical Dementia Rating scale (CDR). Secondary and
exploratory endpoints include the effect of ladostigil compared to placebo on
different cognitive domains using cognitive batteries, changes in hippocampus,
entorhinal cortex and whole brain volume determined by MRI. MRI is also used
to select the population that is at higher risk to develop Alzheimer's
disease.

Earlier this month, the U.S. Food and Drug Administration (FDA) issued new
guidance regarding developing drugs for early stages of Alzheimer's disease.
In the guidance titled, "Guidance for Industry, Alzheimer's Disease:
Developing Drugs for the Treatment of Early Stage Disease," the FDA stressed
the need for developing drugs that will target the very early stages of
Alzheimer's disease before there is too much irreversible injury to the brain.
In a press release issued on February 7, 2013, Russell Katz, M.D., director of
the Division of Neurology Products in the FDA's Center for Drug Evaluation and
Research is quoted as saying: "It is in this population that most researchers
believe that new drugs have the best chance of providing meaningful benefit to
patients." MCI is often a prodromal stage of Alzheimer's disease.

"This investment marks a vote of confidence from our existing investors in
Avraham and ladostigil and will enable us to continue our on-going Phase II
study with patients suffering from MCI, which is advancing as planned,” said
Dr. Yona Geffen, Avraham Pharmaceuticals Chief Executive Officer. "We are
especially encouraged by the recently published FDA guidance that clearly
states there is an unmet medical need for therapy that addresses the very
early stages of Alzheimer's disease, which exactly fits the indications of
ladostigil."

Yaacov Michlin, Avraham’s Chairman, said, "Currently there is no treatment for
MCI, and we are very hopeful, based on our promising previous clinical and
pre-clinical data, that ladostigil will become the first drug to alleviate MCI
symptoms and prevent progression to Alzheimer's disease, to the benefit of
millions of people around the globe."

About Ladostigil

Ladostigil was designed by Professor Marta Weinstock-Rosin of the Hebrew
University of Jerusalem, inventor of Exelon®, and Professor Moussa B.H. Youdim
of the Technion Israel Institute of Technology, inventor of Azilect®. The drug
substance was first synthesized by Professor Michael Chorev of the Hebrew
University, who is now based at Harvard University. All three distinguished
scientists act as scientific advisors to Avraham Pharmaceuticals.

Ladostigil was originally designed as a cholinesterase and brain-selective
monoamine oxides inhibitor. However, in low doses that do not inhibit the
enzymes, ladostigil has neuroprotective activity, by reducing oxidative
stress, reducing microglial activation and inhibiting proinflamtory cytokines.
Therefore, ladostigil provides a drug candidate that may have the potential to
slow progression to Alzheimer's disease in patients diagnosed with MCI. This
potential has been amply demonstrated in animal models, especially in studies
of ageing rats. The drug, which was exclusively licensed to Avraham
Pharmaceuticals by Yissum Research Development Company Ltd., and by the
Technion Research and Development Foundation Ltd. (TRDF), has proven to be
safe and well tolerated in Phase I and Phase II clinical trials.

About Mild Cognitive Impairment

Mild cognitive impairment (MCI) is a syndrome defined as an intermediate stage
between the expected cognitive decline of normal aging and the more pronounced
decline of dementia. It involves problems with memory, language, thinking and
judgment that are greater than typical age-related changes. Although MCI can
present with a variety of symptoms, when memory loss is the predominant
symptom it is termed "amnestic MCI" and is frequently seen as a prodromal
stage of Alzheimer's disease. Prevalence in population-based epidemiological
studies ranges from 3% to 19% in adults older than 65 years. There is no
proven treatment or therapy for MCI.

About Avraham Pharmaceutical

Founded in 2010, Avraham Pharmaceuticals develops ladostigil, a unique,
multi-functional drug substance for the treatment of mild cognitive
impairment, currently undergoing a Phase II clinical trial. Investors in the
Company include Clal Biotechnology Industries Ltd., the Pontifax Fund and
Yissum Research Development Company Ltd., the technology transfer arm of the
Hebrew University, Integra Holdings and the Technion Research and Development
Foundation Ltd.

Contact:

Yissum Ltd
Tsipi Haitovsky, Media Liaison
+972-52-598-9892
tsipih@yissum.co.il