Kane Biotech Announces Distribution Agreement with ProgenaCare Global for its coactiv+™ Antimicrobial Wound Gel

Rhea-AI Summary

Kane Biotech has signed a distribution agreement with ProgenaCare Global LLC to commercialize its coactiv+™ Antimicrobial Wound Gel in the U.S. market. ProgenaCare will exclusively distribute the product once Kane receives 510(k) clearance from the FDA, triggering a $500,000 USD upfront payment. This gel targets the $200 million USD U.S. wound care hydrogel market, addressing the significant issues of chronic wounds, which are often resistant to treatment due to bacterial biofilms. CEO Marc Edwards emphasized the partnership's potential to disrupt the fragmented market with innovative wound care solutions. Together, Kane Biotech and ProgenaCare aim to improve health outcomes for patients while making treatment more accessible.

Positive

• Exclusive distribution agreement with ProgenaCare provides a strategic partner in the U.S. market.
• Upfront payment of $500,000 USD upon FDA clearance enhances cash flow.
• Potential entry into a $200 million USD market for wound care products.
• Innovative coactiv+™ technology could address significant issues in wound healing, increasing market competitiveness.

Negative

• Dependence on FDA approval for 510(k) clearance introduces regulatory risk.
• Kane Biotech's financial condition is highlighted by lack of significant revenues to date.

ProgenaCare to commercialize coactiv+™ Antimicrobial Wound Gel in the U.S. wound care market

WINNIPEG, Manitoba, April 20, 2023 (GLOBE NEWSWIRE) -- Kane Biotech Inc. (TSX-V:KNE OTCQB:KNBIF) (the “Company”, “Kane” or “Kane Biotech”) announced today that it has signed a distribution agreement with ProgenaCare Global LLC (“ProgenaCare”) for its coactiv+™ Antimicrobial Wound Gel in the United States wound care market.

ProgenaCare will have exclusive distribution rights in the United States wound care market for Kane’s coactiv+™ Antimicrobial Wound Gel. Kane will receive a $500,000 USD upfront payment from ProgenaCare once it obtains 510(k) clearance from the U.S. Food and Drug Administration (FDA).

“This is a defining milestone for Kane as we have secured a U.S. partner to bring our technologies to the wound care and surgical markets,” said Marc Edwards, President, and Chief Executive Officer. “We’re bringing an effective and differentiated product to the annual $200 million USD U.S. wound care hydrogel market. We believe that this product will be a major disruptor of this fragmented market. We are excited to partner with ProgenaCare, as they have proven expertise and experience with healthcare solutions in the United States and a focus on affordable and effective wound healing technologies.”

“Kane Biotech’s coactiv+™ Antimicrobial Wound Gel fits in very nicely with our strategic objectives and we look forward to giving it the attention it deserves. The wound care industry has been demanding a premium wound gel that offers both high efficacy and accessibility for patients in the United States,” said Howard Walthall, Chief Executive Officer of ProgenaCare. “ProgenaCare’s goal is to improve lives through leading-edge advancements in biomaterials and medical device technologies. Kane’s patented wound care technologies priced affordably and within Medicare allowables will offer improved health outcomes for patients.”

The coactiv+™ Antimicrobial Wound Gel is a combination of Kane’s patented coactiv+™ technology and PHMB, paired with a non-ionic pluronic surfactant with thermo-gelling properties. The combination of these three components provides for a moist environment best suited for wound healing, with effective antimicrobial activity in an easy-to-use gel that is optimized for sensitive wounds. When the coactiv+™ Antimicrobial Wound Gel is cooled below 16° C/60° F, it transforms into a liquid state, allowing it to be applied to a sensitive wound or burn and flow into every crevice while providing a soothing sensation to the patient. Once applied, the product will rapidly return to its gel-like state when warmed to body temperature, providing a thick clear coating. It can then be easily rinsed off with cold water. The Company previously announced a distribution agreement with Salud Pharma for its coactiv+™ Antimicrobial Wound Gel for Colombia, Panama, and Costa Rica via wound care centers and pharmacies.

Chronic wounds present a significant financial burden to the U.S. healthcare system. The treatment of chronic wounds is a major challenge for health care providers, with a significant failure rate. One of the major issues is the formation of bacterial biofilms, which are present in over 80% of chronic wounds¹. Biofilm formation can make bacteria up to 1,000 times more resistant to antibiotics, antimicrobial agents, disinfectants, and the host immune system.

About ProgenaCare (ProgenaCare Global LLC)

ProgenaCare is a purpose-driven medical device company leveraging cutting-edge advances in biomaterials and medical device technologies to provide effective, affordable advanced wound care solutions to patients across the socioeconomic spectrum and around the world.

About Kane Biotech

Kane Biotech is a biotechnology company engaged in the research, development and commercialization of technologies and products that prevent and remove microbial biofilms. The Company has a portfolio of biotechnologies, intellectual property (80 patents and patents pending, trade secrets and trademarks) and products developed by the Company's own biofilm research expertise and acquired from leading research institutions. StrixNB™, DispersinB^®, Aledex™, bluestem™, bluestem^®, silkstem™, goldstem™, coactiv+™, coactiv+^®, DermaKB™ and DermaKB Biofilm™ are trademarks of Kane Biotech Inc. The Company is listed on the TSX Venture Exchange under the symbol "KNE" and on the OTCQB Venture Market under the symbol “KNBIF.”

For more information:
Marc Edwards	Ray Dupuis	Nicole Sendey
Chief Executive Officer	Chief Financial Officer	Investor Relations/PR
Kane Biotech Inc	Kane Biotech Inc	Kane Biotech Inc
medwards@kanebiotech.com	rdupuis@kanebiotech.com	nsendey@kanebiotech.com

Notes to Editor/References:

1. Kresser, C. (2019, October 10). Biofilm: What it is and how to treat it. Kresser Institute. https://kresserinstitute.com/biofilm-what-it-is-and-how-to-treat-it/

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Information
This press release contains certain statements regarding Kane Biotech Inc. that constitute forward-looking information under applicable securities law. These statements reflect management’s current beliefs and are based on information currently available to management. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. These risks and uncertainties include, but are not limited to, risks relating to the Company’s: (a) financial condition, including lack of significant revenues to date and reliance on equity and other financing; (b) business, including its early stage of development, government regulation, market acceptance for its products, rapid technological change and dependence on key personnel; (c) intellectual property including the ability of the Company to protect its intellectual property and dependence on its strategic partners; and (d) capital structure, including its lack of dividends on its common shares, volatility of the market price of its common shares and public company costs. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by the Company with applicable securities regulatory authorities, available at www.sedar.com. The Company cautions that the foregoing list of factors that may affect future results is not exhaustive.

FAQ

What is the agreement between Kane Biotech and ProgenaCare regarding KNBIF?

Kane Biotech has signed an exclusive distribution agreement with ProgenaCare for its coactiv+™ Antimicrobial Wound Gel in the U.S. wound care market.

What financial benefit does Kane Biotech expect from the ProgenaCare agreement?

Kane Biotech will receive a $500,000 USD upfront payment from ProgenaCare upon obtaining FDA 510(k) clearance.

What is the market potential for the coactiv+™ Antimicrobial Wound Gel?

The coactiv+™ Antimicrobial Wound Gel targets the $200 million USD U.S. wound care hydrogel market.

What are the risks associated with Kane Biotech's new product launch?

The main risk includes dependence on FDA approval for the 510(k) clearance, which could delay product availability in the market.

How does coactiv+™ Antimicrobial Wound Gel differentiate itself in the market?

The gel uses patented technology to combat bacterial biofilms, which are present in over 80% of chronic wounds, thus offering effective healing solutions.