CytoPharm and Amarillo Biosciences Announce Positive HCV Study Results: Oral Interferon Found to Reverse Thrombocytopenia; Reduced Relapse Rate Seen in Patients With Mild Fibrosis

AMARILLO, Texas, June 14, 2012 /PRNewswire/ -- CytoPharm, Inc. and Amarillo Biosciences, Inc. (OTCBB: AMAR) today announced positive clinical findings from a dose-ranging, Phase 2 clinical trial of patients infected with hepatitis C virus (HCV) in Taiwan. A total of 169 HCV patients (genotype 1b) were randomized to receive oral lozenges containing 500 or 1500 international units (IU) of natural human interferon-alpha (IFNa) or matching placebo for 24 weeks, followed by 24 weeks of untreated observation. All randomized patients were in viral remission, having just completed at least 24 weeks of treatment with injectable IFNa and Ribavirin.

High dose injectable IFNa is known to cause thrombocytopenia (a reduction in platelet count) via bone marrow suppression that can be severe. In the current study of HCV patients in viral remission, 60% of evaluable subjects started the study with a platelet count below the normal range. When assessed at study entry, the treatment groups did not differ in mean platelet count. However, the subjects who received 500 IU IFNa per day, but not 1500 IU, had significantly greater (improved) mean platelet counts, compared to subjects in the placebo group, at study weeks 24, 36 and 48. The 500 IU IFNa treatment group also had a significantly higher percentage of subjects whose platelets increased into the normal range, and by the end of the study 81% of the patients with a low starting platelet count given 500 IU IFNa per day had normalized their platelets vs. only 42% in the placebo group.

The primary aim of this study was to reduce the rate of virological relapse of HCV patients by 60%, from a predicted 50% in the placebo group to 20% with oral IFNa treatment. Based on intent-to-treat analysis, the relapse rate was similar in all 3 groups at the end of the study period. However, a beneficial trend was noted in the approximately 40% of study subjects who had mild liver fibrosis (scarring) as determined by FibroIndex scores computed at baseline. In this sub-group, only 12% of HCV patients given 500 IU IFNa per day experienced virological relapse by the end of the study, compared to 32% in the placebo group, a 63% reduction in relapse rate.A detailed final study report is expected to be available in the third quarter, to be followed by publication of full results in the coming months.

While requiring verification from larger, Phase 3 studies, the practical clinical implication of these results is that half to two-thirds of all HCV patients successfully achieving viral remission after completing induction therapy would be candidates for oral IFNa to either prevent relapse or reverse thrombocytopenia induced by treatment with injectable IFNa. This represents millions of patients per year who could benefit from this inexpensive oral medication with minimal side effects. Currently, there are no oral medications approved by the US FDA for treating thrombocytopenia.

The principal study investigator, Dr. Chau-Ting Yeh of the Liver Research Center at the Linkou Chang Gung Memorial Hospital in New Taipei City, Taiwan has submitted an abstract of these positive results for presentation at the American Association for the Study of Liver Diseases meeting to be held in Boston in November. Approximately 8,000 hepatologists from around the globe attend this annual meeting.

About Amarillo Biosciences

Amarillo Biosciences, Inc. is a U.S. biotechnology firm operating in global partnership with Hayashibara Company, Ltd., a wholly-owned subsidiary of the Nagase Group, which also holds 4% of Amarillo Biosciences shares and has provided over $18 million in loans, grants and equity investments. The Company's primary focus is extensive and ongoing R&D into the use of low-dose, orally administered interferon as a treatment for a variety of conditions, including influenza, hepatitis C, chronic cough, and opportunistic infections in patients who are HIV positive. The Company has invested nearly $40 million to establish oral interferon as a therapeutic agent. The majority of those funds were invested in clinical trials in an effort to achieve FDA approval for interferon. Additional information is available on the web at http://www.amarbio.com/.

About CytoPharm

CytoPharm is a closely held company focusing on the development of biopharmaceuticals for virus-infected diseases and cancers. It was founded in 2002 by Ho Tung Chemical, Vita Genomics, and banks and venture capital firms. It acquired core technologies from Gene Trol Therapeutics, Inc., a California based company through M&A. Its product pipelines contain a series of cytokines induced by its proprietary technologies, used for hepatitis and cancers. Currently, its product is under clinical trials in China. Both CytoPharm and Vita Genomics are affiliates of Ho Tung Chemical Inc., one of the largest petrochemical companies in Taiwan, and a publicly traded company whose 2008 revenues were approximately NTD 50 billion.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including uncertainties related to product development, uncertainties related to the need for regulatory and other government approvals, dependence on proprietary technology, uncertainty of market acceptance of oral interferon or the Company's other product candidates and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. In particular, see "Item 1. Description of Business" and "Item 7A. Qualitative and Quantitative Disclosures about Market Risk" of the Company's Form 10-K for the fiscal year ended December 31, 2011.

Investor Relations: Philippe Niemetz

Joseph M. Cummins

PAN Consultants, Ltd.

President and COO

e-mail:p.niemetz@panconsultants.com

e-mail: jcummins@amarbio.com

Tel: 212-344-6464

Tel: 806-376-1741

Fax: 212-618-1276

Fax: 806-376-9301

SOURCE Amarillo Biosciences, Inc.

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