NEW YORK, Feb. 02, 2017 (GLOBE NEWSWIRE) -- Fortress Biotech, Inc. (NASDAQ:FBIO) (“Fortress”), a biopharmaceutical
company dedicated to acquiring, developing and commercializing novel pharmaceutical and biotechnology products, today announced
that Mustang Bio, Inc. (“Mustang”), a subsidiary of Fortress, has closed on a total of $94.5 million, prior to fees and expenses,
in a private placement financing. OPN Capital Markets, the healthcare related investment banking and research division of National
Securities Corporation, a wholly owned subsidiary of National Holdings Corporation (NASDAQ:NHLD), acted as sole placement agent in
connection with the financing.
Dr. Lindsay A. Rosenwald, Fortress’s Chairman, President and Chief Executive Officer, said, “We believe this financing
underscores the potential of Mustang’s CAR T therapies to be substantial value-drivers for patients and investors. We have already
seen early success from Mustang’s MB-101, which achieved an unprecedented complete response in a glioblastoma patient enrolled in
the Phase 1 trial. The patient case study from the Phase 1 clinical trial of MB-101 was published in the December 29, 2016 edition
of the New England Journal of Medicine. If we see similar results in other trial participants, it may support an
accelerated approval pathway.”
Michael S. Weiss, Mustang’s Chairman of the Board, added, “We are thrilled to announce the closing of this financing, which we
believe places us in a strong position to advance our two lead CAR T immunotherapies through Phase 1 data readout early next year,
and to grow Mustang’s pipeline by exploring additional applications for our CAR T technology in areas outside of our initial brain
cancer and acute myeloid leukemia focus. In addition, we plan to continue working with our research partners at City of Hope to
identify new CAR T development candidates that have the potential to provide meaningful benefit to patients.”
The securities sold in the private placement financing have not been registered under the Securities Act of 1933, as amended, or
any state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange
Commission or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall
there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be
unlawful.
About Mustang Bio
Mustang Bio, Inc., a subsidiary of Fortress Biotech, Inc., is a clinical-stage biopharmaceutical company focused on the development
and commercialization of novel cancer immunotherapy products designed to utilize the power of the patient’s own immune system to
eliminate cancer cells. Mustang aims to acquire rights to these technologies by licensing or otherwise acquiring an ownership
interest in the technologies, funding their research and development, and out-licensing or bringing the technologies to market.
Mustang is currently developing proprietary Chimeric Antigen Receptor (CAR) engineered T cells (CAR T) technology, which was
licensed from Drs. Stephen Forman and Christine Brown’s laboratory at the City of Hope National Medical Center (COH). CAR T uses
the patient’s own T cells to engage and destroy specific tumors, by selecting specific T cell subtypes, genetically engineering
them to express Chimeric Antigen T cell Receptors and placing them back in the patient where they recognize and destroy cancer
cells. Mustang, through a research agreement with COH, plans to develop CARs across multiple cancers. Its lead programs in acute
myeloid leukemia and brain cancer are in Phase 1 clinical trials. Mustang is registered under the Securities Exchange Act of 1934,
as amended, and files periodic reports with the U.S. Securities and Exchange Commission. For more information, visit www.mustangbio.com.
About Fortress Biotech
Fortress Biotech, Inc. (“Fortress”) is a biopharmaceutical company dedicated to acquiring, developing and commercializing novel
pharmaceutical and biotechnology products. Fortress develops and commercializes products both within Fortress and through certain
of its subsidiary companies, also known as Fortress Companies. Additionally, Fortress recently acquired a controlling interest in
National Holdings Corporation (NASDAQ:NHLD), a diversified independent brokerage company (together with its subsidiaries, “NHLD”).
In addition to its internal development programs, Fortress leverages its biopharmaceutical business expertise and drug development
capabilities and provides funding and management services to help the Fortress Companies achieve their goals. Fortress and the
Fortress Companies may seek licensings, acquisitions, partnerships, joint ventures and/or public and private financings to
accelerate and provide additional funding to support their research and development programs. For more information, visit www.fortressbiotech.com.
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include, but are not limited to, any statements
relating to our growth strategy and product development programs and any other statements that are not historical facts.
Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could
negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to
differ materially from those currently anticipated include: risks relating to the timing of starting and completing clinical
trials; risks relating to our growth strategy; risks relating to the results of research and development activities; our ability to
obtain, perform under and maintain financing and strategic agreements and relationships; uncertainties relating to preclinical and
clinical testing; our dependence on third-party suppliers; our ability to attract, integrate, and retain key personnel; the early
stage of products under development; our need for substantial additional funds; government regulation; patent and intellectual
property matters; competition; as well as other risks described in our SEC filings. We expressly disclaim any obligation or
undertaking to release publicly any updates or revisions to any forward looking statements contained herein to reflect any change
in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required
by law.
Contacts: Lucy Lu, MD, Executive Vice President & Chief Financial Officer Fortress Biotech, Inc. 781‐652‐4500 ir@fortressbiotech.com Fortress Biotech Media Relations Laura Bagby 6 Degrees (312) 448-8098 lbagby@6degreespr.com