IR BioScience Holdings Inc. CFO Interview: John N. Fermanis

• On 3:11 pm EDT, Tuesday September 15, 2009

67 WALL STREET, New York - September 15, 2009 - The Wall Street Transcript has just published its Medical Research Services report offering a timely review of the sector to serious investors and industry executives. This 23 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Medical Device Research Services - Pharmaceutical Research Services - Diagnostics - Life Science Research Supplies - Biology R & D - Lab Services Business Model - International Economic Exposure - Effect of Recession on Sector Stocks - Top Stock Winners and Losers in Medical Research Services - Top Stock Winners and Losers in Medical Diagnostics

Companies include: Arrowhead Research (ARWR); Cleveland BioLabs (CBLI); IR BioSciences Holdings (IRBS); Power3 Medical Products (PWRM); Illumina (ILMN); Luminex (LMNX); Waters (WAT); Life Technologies (LIFE); QIAGEN (QGEN); Sangamo BioSciences (SGMO); Beckman Coulter (BEC); Invitrogen (IVGN); Amgen (AMGN); Bristol-Myers (BMY); Eli Lilly & Co. (LLY); Myriad Genetics (MYGN); Genomic Health (GHDX); Targeted Genetics (TGEN); Dow Chemical (DOW); Sigma-Aldrich (SIAL); MDS (MDZ); Danaher (DHR); Cepheid (CPHD); Inverness Medical Innovations (IMA); Quidel (QDEL); Meridian Bioscience (VIVO); Gen-Probe (GPRO); Sequenom (SQNM); Genoptix (GXDX); Response Genetics (RGDX); Affymetrix (AFFX); Monogram Bioscience (MGRN); LabCorp (LH)

In the following brief excerpt from the 23 page report, John N. Fermanis discusses the outlook for the sector and for investors.

TWST: Would you give me a brief history of the company and what your focus is on now?

Mr. Fermanis: The company was founded in 2002 as a private corporation and the science was born out of the Air Force Office of Scientific Research Studies conducted at the University of Arizona, AFOSR, for short, which provided the initial funding. They were looking for a treatment for lung damage caused by jet fuels fumes, very toxic fumes. Studies were conducted in the lung laboratory at the U of A. The research scientists there tested different compounds and came up with one that is found to be effective in protecting the lungs, which is an analog of Substance P, a naturally occurring neuropeptide. The researchers identified this analog as Substance P, which we call Homspera, and found it to be effective in protecting the lungs and blood of laboratory animals.

TWST: What lung diseases or conditions is this targeted for?

Mr. Fermanis: We have tested for a host of indications. Right now, we have filed an IND for pulmonary fibrosis.

TWST: When did the company decide to move to more of a health care-focused operation?

Mr. Fermanis: I would say in early 2005 we saw how things were going with the government funding. There was a situation with VaxGen that had an anthrax contract for $500 million or so with the government that was eventually cancelled. They just weren't spreading money around for biodefense, and so we decided to look at more commercial applications. Now having the immune stimulation activity that we had, one of the first areas we looked at was influenza, and that remains a big focus today. We have lots of data from influenza studies. We studied effects on H5N1, H3N2 and H1N1, and we've demonstrated efficacy against all these viruses.

TWST: At what stage of trials?

Mr. Fermanis: These are all pre-clinical, I'd say, advanced pre-clinical. Right now, we are performing our toxicity studies and once these are completed, we will be going into the clinic with at least three indications, influenza, cancer and idiopathic pulmonary fibrosis, which we filed the IND for. Now that could be induced by radiation exposure and, as I said, we have a lot of data on the effects of and efficacy against radiation exposure. And so that's part of the reason that pulmonary fibrosis was the direction we wanted with our first IND. It's an unmet medical need and the FDA is seeking treatments for pulmonary fibrosis. They are helping us and guiding us along with our studies relating to the IND filing.

TWST: You recently entered into a partnership with the University of Pittsburgh's Center for Vaccine Research exploring Viprovex, correct?

Mr. Fermanis: Viprovex is a derivative of Homspera. So the root drug is Homspera. Viprovex and Radilex are trade names that we use to describe potential formulations that will be used in different applications, Viprovex being the influenza formulation and Radilex being the radiation formulation. Those formulations are being developed right and are not finished products. But we are testing different formulations and routes of administration. We've tested influenza with different routes of administration and have been successful. We think our influenza drug can be stockpiled for possible pandemic flu threats that we're all well aware of now.

TWST: Including Swine Flu?

Mr. Fermanis: Including Swine Flu. We've also tested it as an adjuvant for influenza vaccine. And we've had good results there as an adjuvant.

TWST: And at what level have you tested this as well?

Mr. Fermanis: Again, pre-clinical. But we've got a lot of data on therapeutic and adjuvant testing for influenza that show good results. Those studies are continuing, they are ongoing and we are showing these and talking to perspective industry partners. One of our tests was in conjunction with Tamiflu, and we believe the results show that we can boost the effectiveness of Tamiflu when used in conjunction with our compound.

TWST: What are your priorities for the next four to eight quarters?

Mr. Fermanis: Priorities for the next four to eight quarters are concluding our tox studies and getting into the clinic. We believe that will drive the value of our company greatly because being in the clinic is a highly visible inflection point. We're seeking industry partners, a very important focus right now. We're working on new funding sources as well as continuing to work with our existing partners on the next round of funding. That is our focus for the next four quarters at least.

TWST: What are two or three reasons for investors to look closely at your company right now?

Mr. Fermanis: One, inflection point, because we are about to go into the clinic. Two, the unique characteristics and immune system boosting effects of this drug, and the immediate need for high profile diseases like influenza. Influenza is here to stay. If not this year, we may be able to treat it next year.

TWST: What do you consider your competitive advantage?

Mr. Fermanis: I'd have to say it is that the drug itself has unique potential.

TWST: What drug are we talking about?

Mr. Fermanis: Homspera. That is our trade name for Sar9, Met (O2)11-Substance P. Sar9, Met (O2)11, as we discussed early on, is an analog of Substance P, it was developed for its longer-lasting effect than endogenous Substance P.

TWST: Is there anything else that you'd like to add?

Mr. Fermanis: I'd like to thank you for this opportunity and hope that within a few months you will want to follow-up with an ImmuneRegen success story.

TWST: Thank you. (MRR)

JOHN N. FERMANIS Chief Financial Officer IR BioSciences Holdings Inc. 8777 E. Via de Ventura Suite 280 Scottsdale, AZ 85258 (480) 922-3926 (480) 922-4781 - FAX www.immuneregen.com

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