Cynata Therapeutics Ltd (ASX:CYP) Commentary on Industry News

Dear Cynata Supporter

RE: COMMENTARY ON INDUSTRY NEWS

Many of you will be aware of the announcement issued today by Mesoblast (ASX:MSB) regarding its global heart failure program and certain related developments.  I would like to reassure you that this announcement has no direct implications for Cynata.  We are a different company with different science.  Cynata continues to make good progress with its business strategy and in particular differentiates itself from other stem cell companies with its unique, innovative stem cell manufacturing technology that yields a premium quality, clinical grade product.

The stem cell product manufacturing technologies used by first generation stem cell companies are markedly different from Cynata's proprietary Cymerus™technology.  The current, traditional manufacturing relies on multiple donors and massive expansion in culture of the purified cells (ie mesenchymal stem cells or MSCs), two processes that are mandatory under existing, first generation techniques.  Cynata strongly believes (backed by scientific evidence) that reliance on first generation stem cell production methods is a major barrier to effective commercialisation of MSC-based therapeutic products.

Cynata has a proprietary, leading-edge stem cell manufacturing technology that does not require multiple donors or massive expansion of MSCs.  Instead, our new generation process, Cymerus, effectively distances Cynata from the shortcomings of current processes and provides a robust, scalable production technology enabling the manufacture of commercial quantities of MSCs.

In the face of today's news from Mesoblast, which is proceeding with its phase 3 clinical trial in heart failure, it is also timely to remind ourselves that allogenic MSC-based medicines continue to make major inroads in the treatment of many diseases that represent substantial medical challenges.  Whilst not endorsing the clinical studies of other stem cell companies, Cynata has used social media platforms to draw stakeholder's attention to the exciting results being seen in clinical trials of MSCs around the world. With the right stem cell production technology and effective execution, we firmly believe that MSC-based therapeutics will be a major force in medicine and Cynata is well positioned to capitalise on this rapidly growing and critical field of medicine.

Yours sincerely

Ross Macdonald