Phase 2 Clinical Trials for Peripheral Neuropathy

There are three phases in a clinical trial:

• Phase 1 determines safety in a small patient population
• Phase 2 looks for potential adverse affects and early activity in about 100 patients
• Phase 3 determines side effects and efficacy in a substantial patient population

Studies can be run in multiple countries and can be used to a) collectively get approval here in the US and b) separately get approval in those respective countries. As you may recall, we did not encounter any adverse side effects during Phase 1 in Australia. We are currently in Phase 2 in several sites in Canada.

These sites are run by several of the leading research clinicians in the field and all are considered top key opinion leaders in the field of diabetic peripheral neuropathy.

We also met with the US FDA to initiate Phase 2 trials here in the US. It was a very positive interaction; the FDA asked for additional safety tests in animals and gave us significant guidance for our Phase 3 in the United States. Our active drug for WST-057 is a drug that was approved and used by millions of people for gastric ulcers. It was never approved in the United States and was thus considered a new drug, in any format. This was made clear by the US FDA. However, they did acknowledge that WST-057 is eligible for certain expedited review programs.

Remember, the active drug was approved in other countries. We are looking to exploit this. With strong evidence to suggest positive results, we believe we can start and complete trials in other countries (e.g. China and Canada) much earlier than in the US. We will be having discussions with the respective regulatory agency for these countries in mid-2020 and if all goes well, we hopefully can start our Phase 3 trials (an international, multi-center trial) beginning in these countries by 2020. The hope is approval and sales, much earlier than the US. With over 50 million affected with various forms of peripheral neuropathy in China alone, this could be a significant market.

In addition, we are looking to expand trials in other indications in 2020, including chemo-induced peripheral neuropathy and HIV-induced peripheral neuropathy. WinSanTor is clearly looking to differentiate itself by striving to develop drugs that impact patients lives.