HedgePath LLC Challenges Fairness of HPPI Commercial License

HedgePath LLC, founder of HedgePath Pharmaceuticals, Inc. (OTC: HPPI) Challenges the
Fairness of the Commercial License for the BCCNS Indication Granted by HPPI to the Controlling,
Majority Shareholder.

Tampa, FL, January 03, 2019 --(PR.com)-- HedgePath LLC (HP LLC), the founder of HedgePath
Pharmaceuticals (HPPI), announced today that it has retained a Delaware law firm to assist in an
investigation into the circumstances surrounding the “Updated Collaboration and Funding Agreement”
announced on Dec. 17, 2018 between HPPI and its majority owner Mayne Pharma Ventures Pty Ltd, an
affiliate of Mayne Pharma Group Limited. HP LLC believes that the economic terms are atypical and
substantially below market, and it is seeking information about why the revised Supply and License
Agreement (SLA) provides for only a 9% royalty on net sales and no upfront and regulatory milestone
payments to HPPI as well as no one time annual sales milestone payments. HP LLC believes that an
at-market commercial license for a branded, patent-protected orphan drug with seven years of statutory
market exclusivity and that uniquely addresses the chronic needs of a hereditary cancer syndrome like
Basal Cell Carcinoma Nevus Syndrome (BCCNS or Gorlin's syndrome) would provide a substantial
upfront payment, a portion of which might be tied to additional regulatory milestones, a significantly
greater royalty, and additional significant payments tied to one-time sales milestones.

The majority, controlling shareholder has a commercial sales force focused on branded dermatology
products in the USA. In its public investor presentations, the majority, controlling shareholder has
projected sales for this orphan indication of $300M per year which would more than double current sales
for its dermatology division. As majority shareholder, it appoints all directors, its support is necessary for
senior management's employment and compensation, and it has controlled the drug development
program.

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Contact Information:
Hedgepath LLC
James A. McNulty
813-864-2562
Contact via Email

Online Version of Press Release:

You can read the online version of this press release at: https://www.pr.com/press-release/773512

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