Oxygen Biotherapeutics Reports Successful Completion of FDA Requested Immunocompetency Studies on Oxycyte®

  Oxygen Biotherapeutics Reports Successful Completion of FDA Requested
  Immunocompetency Studies on Oxycyte®

          Results from Safety Studies to be Submitted to FDA in July

Business Wire

MORRISVILLE, N.C. -- June 18, 2013

Oxygen Biotherapeutics, Inc. (“OBI”) (NASDAQ: OXBT), is a development stage
biomedical company currently focused on developing its perfluorocarbon-based
intravenous oxygen carrier, Oxycyte^®, as a treatment for traumatic brain
injury (TBI), stroke and other conditions where critical tissues are oxygen
starved. Oxycyte is currently in Phase IIb clinical trials for TBI in Israel
and Switzerland; however, the FDA has requested studies to explore the safety
profile of Oxycyte with respect to immunocompetency as well as transient
decreases in platelet numbers. The company announced today that with the
successful completion of four important preclinical studies assessing
Oxycyte’s potential effects on the immune system, OBI has moved several steps
closer to addressing the questions posed by the FDA and demonstrating a
favorable benefit to risk ratio for the product. These studies were funded as
part of a $2.07 million cost reimbursement grant from the U.S. Army.

The use of any drug that lowers the body’s resistance to infection must be
considered carefully, especially in the long-term hospitalization setting. A
recent study reported in the journal, Clinical Microbiology and Infection,
found that in TBI patients, the most common infection encountered is
ventilator-associated pneumonia, followed by surgical site infections, urinary
tract infections, pneumonia, catheter-associated bacteremias / blood stream
infections and meningitis [Kourbeti, et al., Clin. Micrbiol. Infect., 19,
359-364, 2012]. Earlier this year, OBI obtained FDA buy-in for a series of
studies designed to examine Oxycyte’s potential impact on immune function.

In experiments that used the Influenza virus to assess the overall health of
the immune system, Oxycyte had only subtle effects on antibody production and
did not adversely impact clearance of this common lung infection. Similarly,
in a separate study examining the early phase response of the immune system,
Oxycyte did not interfere with the efficient clearance of a Streptococcal
pneumonia infection from the lung. Many TBI patients will experience as a
result of being intubated one or more bouts of pneumonia; therefore, these
results are important in that they provide evidence suggesting that Oxycyte
does not compromise the patient’s ability to fight this infection often seen
in the ICU. An additional experiment requested specifically by the FDA
demonstrated that Oxycyte did not interfere with the ability of macrophages to
identify and engulf bacteria and, thus, should have minimal effect on that
clearance mechanism, which is associated with many common bacterial
infections.

A fourth study was developed to test the potential immunomodulatory effects of
Oxycyte in a Listeria model of systemic bacterial infection. This gram
positive bacterium is extremely pathogenic and, if not controlled quickly, can
progress to sepsis under conditions of immunosuppression. In our study, the
administration of Oxycyte immediately prior to an injection of Listeria
directly into the circulation resulted in a marked decrease in the animal’s
ability to fend off this infection. It is important to note, however, that
Listeria is not a bacterium commonly associated with TBI patients and was used
in this study simply as a tool to assess immune function. Moreover, any blood
stream infection occurring in a hospitalized patient will be treated
aggressively regardless of what therapy that patient has received.

Overall, we continue to make progress in the development of Oxycyte and are
pleased with the immunocompetency data collected over the last several months.
We also look forward to conducting additional studies that, hopefully, will
continue to support the safety of Oxycyte,” said Dr. Timothy Bradshaw,
Executive Vice President of Drug Development at OBI who noted that the Centers
of Disease Control (CDC) estimates that 1.7 million Americans suffer from TBI
each year and that, currently, there is no approved treatment on the market.

About Oxycyte

Oxycyte is an odorless, milky white emulsion consisting of a perfluorocarbon,
disodium, water, egg yolk phospholipids and a few other ingredients in very
small amounts. It is a sterile, non-pyrogenic emulsion consisting of submicron
particles (medium diameter 200-250 nanometers) of
perfluoro(t-butylcyclohexane), in an aqueous medium that is slightly
hypertonic and mildly buffered to a neutral pH range. It must be formulated in
an aqueous emulsion for intravenous administration. Research has shown that
PFCs can dissolve and release large amounts of gases, including the blood
gases oxygen and carbon dioxide without binding at high concentrations of
inspired oxygen.

About Oxygen Biotherapeutics, Inc.

Oxygen Biotherapeutics, Inc. is developing medical products that efficiently
deliver oxygen to tissues in the body. The company has developed a proprietary
perfluorocarbon (PFC) therapeutic oxygen carrier called Oxycyte^® that is
currently in clinical and preclinical studies for intravenous delivery for
indications such as traumatic brain injury, decompression sickness and stroke.
The company is also developing PFC-based creams and gels for topical delivery
to the skin for dermatologic conditions and potentially wound care. In
addition, the Company has commercialized its Dermacyte^® line of skin care
cosmetics for the anti-aging market. Dermacyte is not out-licensed to Valor
Cosmetics of Switzerland.

Caution Regarding Forward-Looking Statements

This news release contains certain forward-looking statements by the company
that involve risks and uncertainties and reflect the company’s judgment as of
the date of this release. The forward-looking statements are subject to a
number of risks and uncertainties including matters beyond the company’s
control that could lead to delays in new product introductions and customer
acceptance of these new products, and other risks and uncertainties as
described in our filings with the Securities and Exchange Commission,
including in the current Form 10-Q filed on September 19, 2012, and our annual
report on Form 10-K filed on July 24, 2012, as well as other filings with the
SEC. The company disclaims any intent or obligation to update these
forward-looking statements beyond the date of this release. This caution is
made under the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.

Contact:

IRTH Communications
Robert Haag, 1-866-976-IRTH (4784)
oxbt@irthcommunications.com
 
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