PROLOR Biotech Signs Exclusive License Agreement With Yeda Research and Development Company Ltd. for Long-Acting Peptides and Small Molecules Including Oxyntomodulin for Anti-Obesity Applications

NES-ZIONA, Israel, Jan. 18, 2011 /PRNewswire/ -- PROLOR Biotech, Inc., (NYSE Amex: PBTH), today announced that it has entered into a definitive license agreement with Yeda Research and Development Company Ltd. for novel technology utilized in the development of long-acting therapeutic peptides and small molecules, termed Reversible PEGylation. The Reversible PEGylation technology has been shown in animal models to significantly enhance the half-life and improve the biological activity of a variety of peptides and small molecules, including the diabetes-related compound exendin-4, the appetite suppressant peptide PYY, the blood pressure controlling hormone ANP and the intravenous antibiotic drug gentamicin.

PROLOR has been developing, under a limited option-to-license agreement from Yeda, a long-acting oxyntomodulin peptide a drug compound using this technology that is being developed for the treatment of obesity and PROLOR has now exercised its option to license the technology. The definitive license agreement has an expanded scope and includes all therapeutic indications, with the exception of hemophilia and insulins.

The new licensed technology has the potential to enhance PROLOR's capabilities in developing long-acting peptide and small molecule drugs, serving as a complementary technology to PROLOR's core CTP platform for extending the duration of therapeutic proteins and peptides, and potentially enabling PROLOR to develop long-acting therapeutic drugs of many kinds.

"This license from the prestigious Weizmann Institute of Science represents an exciting opportunity for PROLOR," said Dr. Phillip Frost, Chairman of PROLOR. "It complements our core platform and expands our pipeline of competitive long-acting therapeutic drug candidates to include new, important clinical indications."

Oxyntomodulin is a naturally occurring peptide hormone released by the digestive system following food ingestion that acts as a natural satiety signal to reduce food intake and increase energy expenditure. Previous third party studies in humans have demonstrated the potential of oxyntomodulin to reduce appetite and food intake, leading to significant weight loss without side effects. However, oxyntomodulin must be administered by subcutaneous injection and its short half-life may require frequent dosing. PROLOR's long-acting oxyntomodulin, which is expected to have a more favorable dosing profile, is currently in preclinical development.

Yeda Research and Development Company Ltd. is the technology transfer and commercial arm of the Weizmann Institute of Science. The Weizmann Institute of Science is a world-renowned center of multidisciplinary research and higher learning based in Rehovot, Israel.

ABOUT PROLOR BIOTECH

PROLOR Biotech, Inc. is a clinical stage biopharmaceutical company applying unique technologies, including its patented CTP technology, primarily to develop longer-acting, proprietary versions of already approved therapeutic proteins that currently generate billions of dollars in annual global sales. The CTP technology is applicable to virtually all proteins, and PROLOR is currently developing long-acting versions of human growth hormone, which is in Phase II clinical development, and factor VII, factor IX, interferon beta and erythropoietin, which are in preclinical development, as well as an anti-obesity peptide and agents for atherosclerosis and rheumatoid arthritis. For more information, visit www.prolor-biotech.com

Safe Harbor Statement: This press release contains forward-looking statements, which may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "would", "intends," "estimates," "suggests," "has the potential to" and other words of similar meaning, including statements regarding the results of current clinical studies and preclinical experiments and the effectiveness of PROLOR's long-acting protein programs, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect PROLOR's business and prospects, including the risks that PROLOR may not succeed in generating any revenues or developing any commercial products, including any long-acting versions of human growth hormone, erythropoietin, interferon beta, GLP-1 and other products; that the long-acting products in development may fail, may not achieve the expected results or effectiveness and/or may not generate data that would support the approval or marketing of these products for the indications being studied or for other indications; that ongoing studies may not continue to show substantial or any activity; that the actual dollar amount of any grants from Israel's Office of the Chief Scientist is uncertain and is subject to policy changes of the Israeli government, and that such grants may be insufficient to assist with product development; and other risks and uncertainties that may cause results to differ materially from those set forth in the forward-looking statements. The results of clinical trials in humans may produce results that differ significantly from the results of clinical and other trials in animals. The results of early-stage trials may differ significantly from the results of more developed, later-stage trials. The development of any products using the CTP platform technology could also be affected by a number of other factors, including unexpected safety, efficacy or manufacturing issues, additional time requirements for data analyses and decision making, the impact of pharmaceutical industry regulation, the impact of competitive products and pricing and the impact of patents and other proprietary rights held by competitors and other third parties. In addition to the risk factors described above, investors should consider the economic, competitive, governmental, technological and other factors discussed in PROLOR's filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release speak only as of the date the statements were made, and we do not undertake any obligation to update forward-looking statements, except as required under applicable law.

SOURCE PROLOR Biotech, Inc.