Patent granted to Cell Factory in Europe confirms great potential with its exclusive extracellular vesicles in broad therapeutic applications like Crohn's disease and Type 1 Diabetes

Zutphen, The Netherlands - 8 November 2016
Consolidated results
Esperite N.V. (Euronext: ESP, "Esperite" or "the Group") announces that cumulative consolidated revenue increased by 2% compared to the same period last year. The Group was able to increase the gross margin percentage by 1 percent point from 55% to 56%. Consolidated EBITDA improved by 20% for the Group but remains negative.

Stem Cell
Cumulative Stem-Cell segment revenue decreased by 12% compared to the same period in 2015. In absolute numbers the gross margin was equal to Q3 2015. The gross margin percentages increased from 60% for Q3-2015 to 66% for Q3-2016. As a result of the announced cost saving measures, EBITDA was around breakeven in Q3-2016 compared to a considerable negative amount for the same period last year.

Genoma
The market is changing fast in favor to a more regulated price structure including the reimbursements of the genetic tests by both the public and private health care systems. To further expand its sales, Genoma is contracting with local partners for the installation of new Genoma laboratories in several countries. Genoma expects significant development on its markets.

Cumulative Genoma revenue more than doubled compared to Q3-2015. Gross margin percentage also more than doubled. EBITDA is negative due to the ramp up phase and is relatively stable for the first 3 quarters in 2016.

Cell Factory
The broad international patent on MSC-derived extracellular vesicles (including exosomes) has been granted in Europe. The patent covers use of extracellular vesicles (EVs) in treatment of acute and chronic inflammatory and autoimmune diseases. Esperite's R&D business unit The Cell Factory is leading an international consortium focused on clinical translation of the EVs-based drugs in treatment of drug-resistant epilepsy and Crohn's disease.

Esperite's goal, with Cell Factory, is to become a leader in development and production of extracellular vesicles drugs in treatment of different indications i.e. graft versus host disease (GvHD) after solid organ and cell transplantations, arthritis, multiple sclerosis, cystic fibrosis, stroke, traumatic brain and spinal cord injury, newborn encephalopathy, and type 1 diabetes among others.

EVs including exosomes are nanometre-size, natural biological particles secreted by different types of cells in vivo and in vitro. They contain proteins, growth factors, mRNA and other molecules responsible for the therapeutic effect of MSCs. In addition, EVs have several advantages over allogenic MSCs e.g.: up to 10-times lower production costs, no risk of uncontrolled proliferation and differentiation, lower risk of immune response and easy and safe delivery into different tissues and organs in vivo. High stability allows for easy transport and storage of the "ready-to-use" products.

Currently Esperite is looking for partners to support the developments and clinical translations of the extracellular vesicle therapeutics.

Patent infringement case
Genoma strongly believes that Genoma's prenatal genetic test does not infringe the patents as claimed by Illumina and this alleged infringement is unfounded. No date has currently been set for the proceedings of the claim lodged by Illumina.

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Esperite EUR 1,1,28 -5ct vol. 15.867