Better Health. Better Life.

M Pharmaceutical Inc. acquires Trimtec gastric stimulator technology as part of its family of biomedical devices designed to fight obesity and diabetes

VANCOUVER, B.C., CANADA May 7th, 2015 – M Pharmaceutical Inc., ( the "Company") (CSE:MQ), which is committed to developing and commercializing innovative biomedical technologies that improve the health and quality of life for people affected by obesity and diabetes, announced today that it has entered into an agreement for the acquisition of the rights to the intellectual property associated with neural gastrointestinal stimulators through the purchase of Trimtec Biomedical Inc. ("Trimtec"), a private BC company.

The Company has agreed to the issue of common shares from treasury in a number to be determined upon completion of due diligence and assume the obligations of the exclusive worldwide license agreement covering this technology that Trimtec holds with UTI Limited Partnership at the University of Calgary in Calgary, Alberta.

"With this acquisition, we now have a powerful technology suite designed to help treat obesity,” said Dr. Martin Mintchev, President & Chief Executive Officer of M Pharmaceutical Inc. “While we are working to develop all three of our medical devices, we are particularly excited about this acquisition since the design of the implantable neurostimulator prototype is completed and tested, and the technology is ready for chronic clinical trials on humans for regulatory purposes.”

Trimtec, which operates at arms-length to the Company, holds the exclusive worldwide rights to certain patented technology related to neural gastrointestinal stimulators developed by Dr. Mintchev, who is also a professor at the University of Calgary. Under the license, M Pharmaceutical is obligated to pay an initial fee of $50,000, repay patent costs of $156,937 over 20 months, a milestone payment of $10,000 and an ongoing royalty of 3% on sales.

“This acquisition provides the Company with a third strategic family of medical devices to add to our portfolio, diversifying our product mix and reducing market sector risk,” said Dr. Mintchev, noting the gastrointestinal neurostimulators join the eMosquito blood glucose monitor and pseudobezoars for non-invasive weight loss already held by M Pharmaceutical. “This exclusive, worldwide license on the technology of neural gastrointestinal electrical stimulation for laparoscopically implanted, minimally-invasive treatment of obesity completes the first phase of our intellectual property development portfolio in the area of obesity.”

The Trimtec method has been tested in several studies on experimental animals chronically implanted with the stimulator, demonstrating its effectiveness. In 2014, a parametrically similar stimulator (but for the gastric vagal nerve located in the proximal stomach) was approved by the FDA as a Class III medical device for the treatment of obesity.

“We’re excited about the addition of Trimtec and committed to further advancing all three of our biomedical technologies in 2015,” added Dr. Mintchev.

About M Pharmaceutical Inc.

M Pharmaceutical Inc. is committed to developing and commercializing innovative biomedical technologies that improve the health and quality of life for people affected by obesity and diabetes. The Company currently has the exclusive rights to a family of biomedical technologies including (i) the eMosquito, for automatic and autonomous monitoring of blood glucose in diabetics; (ii) temporary controllable pseudobezoars, an innovative method for non-invasive dynamic gastric volume reduction for weight loss that has been recently tested in blind, placebo-controlled human studies; and (iii) gastrointestinal neurostimulators, using a laparoscopically-implantable technique for the treatment of obesity without permanent anatomical modification of the stomach. Commercial development of the eMosquito, the pseudobezoar and the neurostimulator technologies will require successful coordination and execution of a wide variety of technology disciplines.

For more information contact:

Investor Relations
Phone: 604.428.0511
info@m-pharma.ca
www.m-pharma.ca

 

 FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. This news release includes forward-looking statements with respect to the acquisition of TriMtec, and the commercialization of the rights to the eMosquito and the temporary pseudobezoars.  Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com and such factors as the Company failing to acquire TriMtec and the failure to complete the commercialization of the eMosquito and the temporary pseudobezoars.

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