Sangui BioTech:

- Granulox(R) - Follow up

Hamburg, May, 11 2021: With this letter we would like to briefly summarize the events since the acquisition of Sastomed GmbH by the Mölnlycke Health Care Group and point out the latest developments in the Granulox(R) wound spray.

The acquisition of SastoMed GmbH by the Mölnlycke Health Care Group at the end of June 2018 was the starting point for an extensive integration and reorganization program with the target of increasing the market potential of the Granulox(R) wound spray. In addition to adapting the logistical processes, these measures also included legal changes. With the merger of Sastomed GmbH in 2020 with its parent company Mölnylcke Health Care GmbH, Mölnylcke Health Care GmbH is now the contractional licensee of Granulox(R). In addition, extensive and sometimes lengthy restructuring process was carried out in the sales area. The integration of Granulox(R) sales into the sales structure of the Mölnlycke Health Care Group required the reorganization of the partnerships SastoMed GmbH previously entered into in the individual sales territories until 2018. Accordingly, there were temporary slowdown in sales growth in these territories.

At the same time, Granulox(R) was optically integrated into the portfolio for chronic wound solutions of the Mölnlycke Health Care Group by adapting its brand to the Mölnlycke brand identity (https://www.molnlycke.com/products-solutions/granulox/). These measures will accelerate cross-selling effects and help to further expand the customer base. Another step towards the integration and positioning of Granulox(R) within the Mölnlycke Health Care Group with corresponding effects on future sales of Granulox(R) is the integration into a marketing platform (https://www.molnlycke.com/our-knowledge/topical-oxygen- therapy-with-granulox /) as part of the digital strategy of the Mölnlycke Health Care Group, which explains the crucial role of oxygen in the healing of chronic wounds.

Although some measures were impacted by the restrictions associated with the Covid19 pandemic, the integration has been successfully completed.

At the end of 2019, Mölnlycke Health Care Group initiated a European multicenter study to evaluate Granulox(R) in the therapy of chronic venous leg ulcers (https://clinicaltrials.gov/ct2/show/record/NCT04181320?view=record).Despite the Covid19 pandemic, the study is expected to complete as planned. The expected results of this study, which is unique in the wound healing area due to its scope, will provide further excellent clinical data for the use of Granulox(R). This is particularly true in territories such as Germany or France, in which the proof of the effectiveness of the medical device through clinical data will in future be one of the prerequisites for reimbursement by the statutory payers. The results of the study will help establish the treatment of chronic wounds with oxygen as the standard in chronic wound care.

In addition to these encouraging prospects, Mölnlycke Health Care has succeeded in obtaining approval for Granulox(R) for other territories, including Egypt. Out of 100 million people in Egypt, roughly 15% of the adult population suffer from diabetes, a major cause of diabetic leg ulcers. With the recent market approval of Granulox(R), the Egyptian healthcare system has access to a new solution to improve quality and delivery of chronic wound care.

For more information please contact:
Sangui Biotech International, Inc.
Thomas Striepe
e-mail: info@sangui.de

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