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Biopharma Signs Multimillion-Dollar Deal for Key Products in China
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An H.C. Wainwright & Co. report reviewed the arrangement.

In an August 6 research note, Jason Kolbert, an analyst with H.C. Wainwright & Co., reported that Can-Fite BioPharma Ltd. (CANF:NYSE.MKT) signed a license, collaboration and distribution agreement with an Asian firm for the commercialization of two of Can-Fite's small molecule drugs in China, Hong Kong, Macao and Taiwan.

The deal is with CMS Medical Venture Investment Ltd. It is a wholly owned subsidiary of China Medical System Holdings Ltd., a specialty pharmaceutical company based in China, specializing in marketing, promotion and sales of prescription drugs and other medicinal products to hospitals.

Per the agreement, Kolbert noted, CMS Medical will obtain regulatory approval in China for Can-Fite's piclidenoson for the treatment of rheumatoid arthritis and psoriasis and for namodenoson for the treatment of advanced liver cancer and nonalcoholic fatty liver disease/nonalcoholic steatohepatitis. "Can-Fite may, at the option of CMS, supply finished product to CMS," he added.

CMS Medical will pay Can-Fite $2 million upfront, $14 million upon hitting specific regulatory milestones, $58.5 million upon achieving certain commercial milestones and a double-digit royalty payment on net sales.

Kolbert pointed out that this CMS agreement is the latest in a series of regional deals that Can-Fite has made, and "we do expect to see additional partnerships over the next two years."

H.C. Wainwright has a Buy rating and an $8 per share target price on Can-Fite, whose stock is trading at around $1.21 per share.


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Disclosures from H.C. Wainwright & Co., Can-Fite BioPharma Ltd., Target Price Revision, August 6, 2018

I, Jason Kolbert, certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.

None of the research analysts or the research analyst’s household has a financial interest in the securities of Can-Fite BioPharma Ltd. (including, without limitation, any option, right, warrant, future, long or short position).

As of July 31, 2018 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Can-Fite BioPharma Ltd.

Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.

The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.

The Firm or its affiliates did receive compensation from Can-Fite BioPharma Ltd. for investment banking services within twelve months before, and will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.

H.C. Wainwright & Co., LLC managed or co-managed a public offering of securities for Can-Fite BioPharma Ltd. during the past 12 months.

The Firm does not make a market in Can-Fite BioPharma Ltd. as of the date of this research report.

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