Oxygen Biotherapeutics Closes the Acquisition of Phyxius Pharma Assets Related to Levosimendan; John Kelley Appointed CEO of

  Oxygen Biotherapeutics Closes the Acquisition of Phyxius Pharma Assets
  Related to Levosimendan; John Kelley Appointed CEO of Oxygen Biotherapeutics

Business Wire

MORRISVILLE, N.C. -- November 14, 2013

Oxygen Biotherapeutics, Inc. (NASDAQ: OXBT) a developer of oxygen-carrying
therapeutics, today announced the closing of its acquisition of certain assets
of Phyxius Pharma, a privately-held biopharmaceutical company focused on the
development and near-term commercialization of levosimendan to prevent and
treat cardiac surgery patients at risk for developing low cardiac output
syndrome (LCOS), a significant unmet medical need. Pursuant to the previously
announced Purchase Agreement, Oxygen Biotherapeutics acquired the exclusive
rights to develop and commercialize levosimendan in North America, and will
welcome three key Phyxius Pharma executives into its management team.

At closing, John Kelley, Phyxius Pharma’s Co-Founder and CEO, was named CEO of
Oxygen Biotherapeutics. Mr. Kelley will also be appointed to Oxygen
Biotherapeutics’ Board of Directors at the next regularly scheduled meeting of
the Board of Directors of the Company. Michael Jebsen, Oxygen Biotherapeutics’
prior interim CEO and current CFO, will continue serving as Oxygen
Biotherapeutics’ CFO. In addition, two other former key Phyxius Pharma
executives and co-founders are joining Oxygen Biotherapeutics. Doug Randall
will serve as EVP of Business and Commercial Operations, and Douglas Hay, PhD,
will serve as Oxygen Biotherapeutics’ EVP of Regulatory Affairs. Following
stockholder approval of the transaction, one additional director designated by
Phyxius Pharma stockholders will be appointed to Oxygen Biotherapeutics’ Board
of Directors.

Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial
Services Inc. (NYSE MKT:LTS) acted as a financial advisor for the transaction.

“This acquisition represents the culmination of our efforts over the past two
years. The second cohort of our Phase IIB clinical trial for traumatic brain
injury is now well underway and we believe we are on the cusp of completing
the additional preclinical studies undertaken to address the FDA’s concerns
regarding perfluorocarbon -based products such as Oxycyte®. The Company is now
ready to expand its product portfolio to renew the potential and value of
Oxygen Biotherapeutics” stated Oxygen Biotherapeutics CFO Michael Jebsen.
“John Kelley is ideally suited to lead the Company and our transformation into
an advanced clinical stage pharmaceutical company. I look forward to working
closely with John Kelley, Doug Randall and Douglas Hay as we continue to grow
Oxygen Biotherapeutics.”

John Kelley, Oxygen Biotherapeutics’ new CEO commented, “My team and I at
Phyxius have been working closely with our partners at Orion Pharma developing
the protocol for this Phase 3 trial. Our study design was planned in close
consultation with the FDA and with input from experienced levosimendan
clinical researchers from across the world. The result of our significant
planning is what we believe to be a highly efficient clinical trial that
capitalizes on the learning of prior trials as well as the real world use of
levosimendan in cardiac surgery patients. I look forward to testing our
clinical hypothesis as we conduct our Phase 3 trial and I am pleased to be
able to do so as part of the new Oxygen Biotherapeutics.”

Levosimendan was discovered and developed by Orion Pharma, Orion Corporation
of Espoo Finland. Levosimendan is a calcium sensitizer developed for
intra-venous use in hospitalized patients with acutely decompensated heart
failure. It is currently approved in over 50 countries for this indication. It
is not available in the United States. It is under development in North
America for reduction in morbidity and mortality of cardiac surgery patients
at risk of low cardiac output syndrome (LCOS). The acquisition brings to
Oxygen Biotherapeutics not only the exclusive rights in North America to
develop and commercialize levosimendan for the specific indication of
prevention and treatment of LCOS, but also the FDA’s approval of Fast Track
status for a Phase 3 trial, and the FDA’s SPA which represents agreement with
the Phase III clinical trial’s study protocol. The FDA has provided guidance
that a single successful trial will be sufficient to support approval of
levosimendan in this indication.

Stockholder approval was not required and was not sought for the consummation
of the acquisition; however, Oxygen Biotherapeutics intends to seek
stockholder approval for the full issuance of the securities contemplated in
the transaction. A more complete description of the acquisition will be
available in the Form 8-K to be filed by Oxygen Biotherapeutics with the
Securities and Exchange Commission (the “SEC”). This press release is neither
an offer to sell nor a solicitation of an offer to buy any of the Oxygen
Biotherapeutics’ securities. No offer, solicitation, or sale will be made in
any jurisdiction in which such offer, solicitation, or sale is unlawful. The
terms and conditions of the transactions described in this press release are
qualified in their entirety by reference to the transaction documents, which
were filed on October 25, 2013 with the SEC on Form 8-K.

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.

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, but not limited to, the
successful integration of Phyxius Pharma into the company, the company’s
ability to successfully conduct any clinical trials, delays in new product
introductions and customer acceptance of these new products, and other risks
and uncertainties as described in the company’s filings with the Securities
and Exchange Commission, including in its quarterly report on Form 10-Q filed
on September 17, 2013, and annual report on Form 10-K filed on June 26, 2013,
as well as its other filings with the SEC. The company disclaims any intent or
obligation to update these forward-looking statements beyond the date of this
release. Statements in this press release regarding management’s future
expectations, beliefs, goals, plans or prospects constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995.


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