HSCI Announces Terms of the Investment Agreement on SynBio Project

Moscow, August 4, 2011– OJSC HSCI – The Human Stem Cells Institute (MICEX: ISKJ), a Russian company engaged in the development, manufacturing and commercialization of products and services in the realm of cell-based, gene and post-genome technologies, today announces the parameters of the SynBio project. This special investment project is aimed at the development and production of fist-in-class medicines as well as next-generation pharmaceutical products known as BioBetters.

The Human Stem Cells Institute is the final signatory among the participating companies to sign the investment agreement. The agreement is subject to all necessary shareholder approvals.

The SynBio project, which was initiated by HSCI and has attracted the support of RUSNANO, unites several leading Russian and international research and development companies. The Human Stem Cells Institute is the largest private participant in SynBio. Other members of the special project company (SynBio LLC) are Pharmsynthez OJSC, Cryonix CJSC, Dmitry Genkin and FDS Pharma LLP. The lead R&D partners for the project are the British company Lipoxen PLC, a leading international biopharmaceutical company, as well as the German SymbioTec GmbH (which during the course of the project will be merged into Lipoxen). It is expected that drugs developed within this project will be sold both in Russia and in international markets.

SynBio will focus on developing drugs based on three technological platforms:
Cell therapeutic product for the treatment of liver cirrhosis (the Gemacell platform);
Drugs based on recombinant human Histone H1 for treatment of oncologic and other diseases
(the Histone platform);
Sustained-release drugs containing polysialic acid – BioBetters for the treatment of diabetes mellitus, Alzheimer's disease, chronic kidney disease and a number of other diseases (the PolyXen® platform).

Speaking at a press conference dedicated to the launch of the project, HSCI’s General Director Artur Isaev commented: “It is difficult to overstate the importance of today’s announcement for us and our partners: for the first time a Russian company is acting as the initiator of an international M&A project in the biotech sector to serve both the Russian and global markets. The aim of this project is to bring to market a number of innovative drugs that will represent real progress in the treatment of socially significant diseases. Furthermore, our project is an excellent example of how the government’s programme for innovative development of the Russian pharmaceutical sector can be implemented.”

More information about the SynBio project can be found on the website: www.synbio-pharma.com; and on HSCI’s corporate website at: http://eng.hsci.ru/research-development/synbio.

09 августа 2011