Extension of Agreement on Factor VIII Biopump (5501W)

TIDMMEDG TIDMMEDU

RNS Number : 5501W

Medgenics Inc

22 November 2010

Medgenics, Inc.

('Medgenics' or the 'Company')

MEDGENICS ANNOUNCES EXTENSION OF COLLABORATION ON DEVELOPMENT OF FACTOR VIII BIOPUMP

Misgav, Israel and London, UK - November 22, 2010 - Medgenics (AIM: MEDU MEDG) announces that it has finalized a 6-month extension of its agreement with its major international pharmaceutical company collaborator to continue the joint development of Factor VIII Biopump.

Medgenics will assume the funding responsibilities during such period and the pharmaceutical company has the exclusive option to negotiate a definitive agreement regarding a transaction related to the Factor VIII Biopump technology taking into account the relative contributions of the parties. Such option is exercisable anytime prior to the end of such 6-month period upon payment to Medgenics of a $2,500,000 option fee.

For further information, contact:

 
 Medgenics, Inc.                     Phone: +972 4 902 8900 
  Dr. Andrew L. Pearlman 
 De Facto Communications             Phone: +44 207 861 3838 
  Mike Wort 
  Anna Dunphy 
 Religare Capital Markets (Nomad)    Phone: +44 207 444 0800 
  James Pinner 
  Derek Crowhurst 
 SVS Securities plc (Joint Broker)   Phone: +44 207 638 5600 
  Alex Mattey 
  Ian Callaway 
 Nomura Code Securities (Joint       Phone: +44 207 776 1219 
  Broker) 
  Jonathan Senior 
 Grayling NY                         Phone: +1 646 284 9472 
  Leslie Wolf-Creutzfeldt

Notes to Editors:

Medgenics is a medical technology and therapeutics company focused on providing sustained protein therapies, having developed its unique tissue-based Biopump platform technology to provide sustained-action protein therapy for the treatment of a range of chronic diseases. The first revenue generating commercial deal with a well known multinational pharmaceutical company was negotiated in late 2009 and we look forward to generating additional deals to further commercialise the Biopump platform technology.

Biopumps are made using needle biopsies taken from the lower layer of the patient's skin under local anaesthetic, and processed during 10-14 days to become 30 mm long tissue biofactories producing the required protein. The requisite numbers of Biopumps are injected under the patient's skin to provide sustained protein production and delivery for several months. The Company is developing the Biopump to provide substantially greater safety and reliability in protein treatment in a more cost effective manner than experienced with the existing injected protein therapies. Medgenics currently has three products in development based on this technology, addressing the indications of:

- anaemia - using EPODURE, a Biopump producing erythropoietin (EPO)

- hepatitis-C - using INFRADURE - a Biopump producing interferon-alpha (IFN-a)

- haemophilia - using a Biopump to produce clotting Factor VIII

The Company's Phase I/II clinical trial using EPODURE to treat anaemia in patients with chronic kidney disease has demonstrated proof of concept of the Biopump. Designed to produce and deliver a therapeutic dose of EPO steadily for six months or more, EPODURE Biopumps have already provided anaemia treatment in patients for 6 months or more, even at the low administered dose.

Medgenics intends to develop its innovative products and bring them to market via multiple strategic partnerships with major pharmaceutical and/or medical device companies. In addition to treatments for anaemia, hepatitis-C and haemophilia, Medgenics plans to develop and/or out-license a pipeline of future Biopump products targeting the large and rapidly growing global protein therapy market, which is forecast to reach US $95 billion by the end of 2010. Other potential applications of Biopumps producing various proteins include multiple sclerosis, arthritis, paediatric growth hormone deficiency, obesity, and diabetes.

CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements, which include all statements other than statements of historical fact, including (without limitation) those regarding the Company's financial position, business strategy, plans and objectives of management for future operations. These statements relate to future events, prospects, developments and strategies. Forward-looking statements are sometimes identified by their use of the terms and phrases such as "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning, "expect," "believe," "will " "will likely," "should," "could," "would," "may" or the negative of such terms and other comparable terminology. All such forward-looking statements are based on current expectations and are subject to risks and uncertainties. Should any of these risks or uncertainties materialize, or should any of the Company's assumptions prove incorrect, actual results may differ materially from those included within these forward-looking statements. Accordingly, no undue reliance should be placed on these forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. As a result of these factors, the events described in the forward-looking statements contained in this release may not occur.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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