Qu Biologics Closes Oversubscribed Financing; Crohn's Disease Phase 2 Clinical Trial Results in First Quarter 2016

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 23, 2015) - Qu Biologics Inc., a biotechnology company developing Site Specific Immunomodulators (SSIs) that aim to restore the body's normal immune response, announced it has closed an oversubscribed private financing of CDN$3.5 million bringing the total private equity capital raised to CDN$19 million to date.

Dr. Hal Gunn, CEO of Qu Biologics commented, "We are pleased with the high level of interest from private equity investors who clearly share our enthusiasm in the wide application potential of Qu Biologics' platform of SSI treatments." Dr. Gunn added, "Rather than blocking or disrupting a process in the body, SSIs are designed to restore our body's innate immune response. This potential is reflected in both the blinded and open-label data for QBECO, our lead candidate for the treatment of inflammatory bowel disease. We anticipate sharing the top-line unblinded results of QBECO-01, our Phase 2 Crohn's disease trial, in late first quarter 2016 and evaluating strategic licensing opportunities."

Qu Biologics' VP of Finance, E. Russell McAllister added, "This latest round allows Qu to expand its clinical footprint by initiating a randomized, controlled clinical trial in one or more cancer indications in 2016. Compelling earlier compassionate use and clinical data supports further expanding our clinical programs, and we plan to raise additional capital throughout 2016, privately, publicly or through strategic partnerships, to support these efforts."

Qu Biologics has clinical trials in Crohn's disease, ulcerative colitis and recurrent lung cancer. Enrollment in Qu's Crohn's disease clinical trial, QBECO-01, completed in November 2015, and top-line results are expected to be available in late first quarter 2016. An open-label Phase 2 ulcerative colitis trial, QBECO-UC-01, was initiated in August 2015 and completed enrollment of the first group of participants in November. Enrollment of a second group of participants into the ulcerative colitis clinical trial is expected to begin in third quarter 2016. Plans are underway to initiate multi-centre Phase 3 trials in Crohn's disease and ulcerative colitis in early 2017. QBKPN-01, a Phase 1/2 lung cancer clinical trial, is currently recruiting participants at the BC Cancer Agency Research Centre. Qu Biologics is also exploring the expansion of its cancer programs to include randomized, controlled clinical trials in lung cancer and at least one other cancer type.

About Qu Biologics

Qu Biologics develops Site Specific Immunomodulators (SSI), a novel class of immunotherapies that aim to restore the body's normal immune response. SSIs are designed to stimulate an immune response in targeted organs or tissues to potentially reverse the chronic inflammation underlying many conditions including cancer and immune-related disease. The company has initiated clinical trials in Crohn's disease, ulcerative colitis and recurrent lung cancer.

Backed by a prestigious group of scientific advisors and board members, Qu Biologics is led by a management team that includes co-founder and CEO Dr. Hal Gunn, a physician and expert on the body's immune response to chronic disease, Chief Medical Officer Dr. Simon Sutcliffe, former CEO of the BC Cancer Agency and a distinguished clinician, scientist and leader in cancer control internationally, and Chief Scientific Officer Dr. David Mullins, Assistant Professor of Microbiology and Immunology in the Norris Cotton Cancer Center at the Geisel School of Medicine at Dartmouth, and recognized expert in immune cell trafficking to tumours. For more information, visit www.qubiologics.com and www.quibd.com.