XORTX to acquire renal anti-fibrotic program

Mr. Allen Davidoff reports XORTX ANNOUNCES ACQUISITION OF RENAL ANTI-FIBROTIC THERAPEUTIC PROGRAM FROM VECTUS BIOSYSTEMS XORTX Therapeutics Inc. has entered into a binding term sheet to acquire a renal anti-fibrotic therapeutic program from Vectus Biosystems Ltd., an Australian Securities Exchange-listed company. The program includes a novel new chemical entity, VB4-P5, along with its associated intellectual property, regulatory documentation and manufacturing data. The program is currently at the pre-IND (investigational new drug) stage of development and targets both rare and prevalent forms of kidney disease -- areas with substantial unmet medical need. Dr. Allen Davidoff, chief executive officer of XORTX, stated: "The opportunity to acquire the VB4-P5 program was highly compelling. This program is underpinned by a novel, patented small molecule with robust global patent protection and strong preclinical evidence. It is directly aligned with our strategic focus on developing innovative therapies for progressive kidney disease, and it builds upon our mission to bring new classes of treatments to patients suffering from rare renal disorders." The term sheet provides for XORTX to acquire from Vectus the intellectual property specifically related to the VB4-P5 compound and the data generated by Vectus from its work on the VB4-P5 small molecule and related assets. The consideration receivable by Vectus is $3.0-million (U.S.), payable in common shares or common share equivalents of XORTX at a deemed issue price of 86 U.S. cents per security, with the issue price subject to adjustment in certain circumstances provided, however, that the issue price will not below lower than the discounted market price (as defined in the policies of the TSX Venture Exchange) on the last trading day prior to this issuance of this press release. The term sheet is subject to finalization of closing documentation, satisfaction of conditions that are typical for a transaction of this type including receipt of all regulatory approvals, and compliance with applicable stock exchange requirements and applicable securities laws. Closing of the acquisition will occur no more than 90 days from the execution of the term sheet. If requested by Vectus, XORTX will use its reasonable commercial efforts to register the securities with the Securities and Exchange Commission of the United States. In addition, Vectus will enter into a voluntary lockup agreement that, among other things, restricts sales of the securities by Vectus for 180 days after the closing date. About Kidney disease and fibrosis Chronic kidney disease (CKD) affects an estimated 14 per cent of adults globally, including approximately 35 million to 37 million individuals in the United States alone. Kidney fibrosis -- characterized by excessive accumulation of extracellular matrix following renal injury -- is a hallmark of CKD progression, leading to organ dysfunction, high morbidity and mortality. Rare kidney diseases such as autosomal dominant polycystic kidney disease (ADPKD) and lupus nephritis also manifest fibrosis, contributing to the deterioration of kidney and cardiovascular function. Currently, available treatments for kidney fibrosis focus primarily on blood pressure control and dietary interventions. No approved therapies specifically target or reverse kidney fibrosis. About the VB4-P5 program Early preclinical data from the VB4-P5 program demonstrate the potential of this potent small molecule to inhibit and possibly reverse kidney fibrosis. Patent protection for VB4-P5 includes composition-of-matter and method-of-use claims across more than 30 global jurisdictions, positioning the program for broad development and commercialization opportunities. About XORTX Therapeutics Inc. XORTX is a pharmaceutical company with three clinically advanced products in development: 1) the company's lead program XRx-026 program for the treatment of gout; 2) XRx-008 program for ADPKD; and 3) XRx-101 for acute kidney and other acute organ injury associated with respiratory virus infections. In addition, the company is developing XRx-225, a preclinical stage program for Type 2 diabetic nephropathy. XORTX is working to advance products that target aberrant purine metabolism and xanthine oxidase to decrease or inhibit production of uric acid. At XORTX, the company is dedicated to developing medications that improve the quality of life and health of individuals with gout and other important diseases. We seek Safe Harbor.