LADR-7

LOS ANGELES--( BUSINESS WIRE )--LadRx Corporation (OTCQB: LADX) (“LadRx” or the “Company”), a biopharmaceutical innovator focused on research and development of life-saving cancer therapeutics, today issued the below letter to shareholders providing a corporate update and anticipated milestones for 2024 regarding arimoclomol and LADR-7. *** January 9, 2024 Dear LadRx Shareholders, It was a busy close to 2023 and has already been an exciting start to 2024. We are pleased to provide the following updates on the subjects of arimoclomol and LADR-7. Arimoclomol In 2023, LadRx entered into an agreement with XOMA Corporation (NASDAQ: XOMA) (“XOMA”) in which LadRx transferred the economic rights from arimoclomol to XOMA in exchange for an upfront payment and subsequent payments upon the achievement of certain milestones. The first of those milestones is the notification of the sponsor, Zevra Therapeutics, Inc. (NasdaqGS: ZVRA) (“Zevra”), by the U.S. Food and Drug Administration (“FDA”) that the New Drug Application (“NDA”) for arimoclomol has been accepted by the FDA. On January 8, 2024, Zevra announced the acceptance of the arimoclomol NDA by the FDA, with a Prescription Drug User Fee Act (“PDUFA”) date of June 21, 2024, triggering a $1 million payment obligation from XOMA to LadRx. The second milestone related to arimoclomol is the first commercial sale of arimoclomol by Zevra, which triggers an additional $1 million payment from XOMA to LadRx (which will net LadRx $600,000). Zevra has not released the expected timing of the first commercial sale, though LadRx management believes that the first commercial sale in 2024 is a reasonable expectation, should the FDA approve the NDA. Development of LADR-7 As previously communicated, LadRx is working diligently towards entering the first-in-human studies of LADR-7, which is a targeted, controlled release form of the highly potent tubulin inhibitor auristatin-E. The Company is pleased to report that the production of approximately 100 grams of LADR-7 under Good Manufacturing Practices (“GMP”) has progressed smoothly, has been completed and the GMP LADR-7 currently in hand is sufficient to carry out final toxicology studies, and to initiate Phase IA studies in humans. The Company has also initiated the Good Laboratory Practices (“GLP”) toxicology program that is expected to form the foundation of the Investigational New Drug (“IND”) application for LADR-7 to the FDA. In the fourth quarter of 2023, the Company submitted a pre-IND to the FDA, outlining our proposed toxicology program. If the FDA agrees with our proposed toxicology program, management expects the toxicology studies to be completed and the IND for LADR-7 to be filed with the FDA by the end of the third quarter of 2024 or the beginning of the fourth quarter of 2024. Absent a clinical hold from the FDA, this timeline should allow the Company to be ready for first-patient dosing with LADR-7 by the end of 2024 (the period for the FDA review of an IND is 30 days). If the Company encounters difficulties with the toxicology program or fails to meet the FDA’s requirements for the IND, the first-patient dosing could be substantially delayed. With the $1 million milestone payment from XOMA, management projects the resulting cash on hand should be sufficient to reach at least the IND filing for LADR-7. In addition to receiving this additional cash influx, LadRx making an IND submission for LADR-7 by the end of the third quarter of 2024 or the beginning of the fourth quarter of 2024 is dependent on the toxicology program going smoothly, and on the FDA accepting LadRx’s proposed toxicology program. In the second half of 2023, the Company made material progress on the patent protection of its LADR-based molecules. LadRx’s auristatin-based drugs were granted patents in Europe, Japan, Australia and South Africa, while the maytansinoid-based drugs received a patent in Israel. The broader LADR platform, which we employ in both auristatin- and maytansinoid-based drugs, received a patent in Brazil. The prosecution of patents covering the LADR drugs has been met with success, and there remain additional patents pending for both the LADR platform and its derivative drugs. We look forward to continuing to build on our momentum at LadRx and a successful 2024. Sincerely, Stephen Snowdy, PhD CEO of LadRx *** Forward-Looking Statements This press release may contain certain statements relating to future results which are forward-looking statements, including whether the company’s strategic review will be successful and whether the stock split will help the company be more successful in evaluating strategic alternatives. These statements are not historical facts, but instead represent only LadRx’s belief regarding future events, many of which, by their nature, are inherently uncertain and outside of LadRx’s control. Such statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements; and other risks and uncertainties described in the most recent annual and quarterly reports filed by LadRx with the SEC, including disclosures under the heading “Risk Factors,” and current reports filed since the date of the LadRx’s most recent annual report. All forward-looking statements are based upon information available to LadRx on the date the statements are first published. LadRx undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. About LadRx LadRx Corporation (OTCQB: LADX) is a biopharmaceutical company with expertise in discovering and developing new therapeutics principally to treat patients with cancer. LadRx transferred the royalty and milestone rights associated with its previously developed drugs, arimoclomol and aldoxorubicin, to XOMA Corporation (NASDAQ: XOMA) in exchange for $5 million in gross proceeds and up to an additional $6 million based on regulatory and commercial milestones related to the development of arimoclomol and aldoxorubicin by their respective sponsors, Zevra, Inc. and ImmunityBio, Inc. (net of the existing licensing and milestone obligations owed by LadRx related to arimoclomol and aldoxorubicin). LadRx Corporation’s website is www.ladrxcorp.com .

LOS ANGELES--( BUSINESS WIRE )--LadRx Corporation (OTCQB: LADX) (“LadRx” or the “Company”), a biopharmaceutical innovator focused on research and development of life-saving cancer therapeutics, announced today that it has initiated a process to explore a range of strategic and financing alternatives, and provided updates. Review of Strategic Alternatives LadRx has initiated a process to explore a range of strategic and financing alternatives focused on maximizing stockholder value. Potential alternatives that may be explored or evaluated include a strategic sale, a merger or reverse merger, implementing a reverse stock split for the purposes of up-listing to NASDAQ, seeking additional financing or some combination of the aforementioned scenarios. Stephen Snowdy, PhD, the Company’s Chief Executive Officer stated: “ We believe that LadRx has great potential if Arimoclomol and Aldoxorubicin successfully navigate clinical trials and regulatory approvals, and we have additional next-generation oncology drugs in the pipeline. We do not feel that our current market capitalization reflects the value of our partnerships and assets, so we are embarking on efforts to maximize value for our shareholders.” As part of the strategic review process, the Company has engaged Roth Capital Partners, LLC to act as strategic advisor to assist the Company in evaluating certain alternatives. There can be no assurance that this strategic review process will result in the Company pursuing any transaction or that any transaction, if pursued, will be completed. The Company has not established a schedule for completion of this strategic review process, nor has it made any definitive decisions related to strategic alternative transactions. If the Company is unable to complete a transaction, it may be required to seek alternatives for restricting and resolving its liabilities. The Company does not expect to disclose or provide an update concerning developments related to this process until the Company enters definitive agreements or arrangements with respect to a transaction or otherwise determines that additional disclosure is necessary or appropriate. Arimoclomol The Company sold the rights to Arimoclomol to Orphazyme A/S in exchange for milestones and royalties. Arimoclomol is being developed for the treatment of Nieman-Pick Type C, a neurological disease, and if certain regulatory and commercial milestones are achieved, Arimoclomol could bring up to $120M to LadRx and additional royalties on sales. In May of 2022, after receiving a Complete Response Letter (CRL) from the FDA, Orphazyme’s assets were purchased by KemPharm Denmark A/S, a wholly-owned subsidiary of KemPharm, Inc. KemPharm recently rebranded as Zevra, Inc. Zevra has announced that it plans on resubmitting the NDA for Arimoclomol to the FDA as early as Q3 2023, and Zevra has expressed confidence that the Company will be able to address deficiencies that led to the prior CRL from the FDA. Aldoxorubicin The Company’s first-generation cancer therapeutic, Aldoxorubicin, was licensed to Immunity Bio, Inc. for up to $343M in milestones, in addition to royalties on sales. Immunity Bio has reported positive data in a Phase II non-randomized clinical trial in pancreatic cancer, and recently initiated enrollment in a randomized clinical trial in response to guidance from the FDA provided in a Type B meeting held in 4Q 2022. Next-generation Cancer Drugs Based on LADR (“Linker Activated Drug Release”) The next-generation LADR-based drugs employ an improved linker and highly potent chemotherapeutic agents. The Company’s pre-clinical drug candidates are based on this next-gen LADR design, namely LADR7-10. LADR7 and 8 employ the highly potent chemotoxin Auristatin E, while LADR9 and 10 employ another highly potent chemotoxin called Maytansine. LADRs7-10 have demonstrated powerful anti-cancer activity in pre-clinical animal models in several different types of solid tumors, and have shown acceptable toxicity profiles. These compounds are positioned to move into IND-enabling activities, and could be IND-ready and into Phase I clinical trials in as little as 18 months from funding of the LADR program. Forward-Looking Statements This press release may contain certain statements relating to future results which are forward-looking statements. These statements are not historical facts, but instead represent only LadRx’s belief regarding future events, many of which, by their nature, are inherently uncertain and outside of LadRx’s control. Such statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements; and other risks and uncertainties described in the most recent annual and quarterly reports filed by LadRx with the SEC, including disclosures under the heading “Risk Factors”, and current reports filed since the date of LadRx’s most recent annual report. All forward-looking statements are based upon information available to LadRx on the date the statements are first published. LadRx undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. About LadRx LadRx Corporation (OTCQB: LADX) is a biopharmaceutical company with expertise in discovering and developing new therapeutics principally to treat patients with cancer. LadRx’s most recent advanced drug conjugate, Aldoxorubicin, is an improved version of the widely used anti-cancer drug doxorubicin and has been out-licensed to ImmunityBio, Inc. In addition, LadRx’s drug candidate, Arimoclomol, was sold to Orphazyme A/S (now Zevra Therapeutics) in exchange for milestone payments and royalties. Zevra is developing Arimoclomol and is currently focused on Niemann-Pick disease Type C (NPC). LadRx Corporation’s website is www.ladrxcorp.com .