Timber Pharmaceuticals Provides Business Update and Announces Fourth Quarter and Year End 2022 Financial Results

– Lead asset TMB-001 is only compound to receive official orphan drug designation from European Commission for two severe subtypes of congenital ichthyosis, ARCI and XLRI –

– Timber has enrolled 50% of patients for pivotal TMB-001 Phase 3 ASCEND clinical trial –

WARREN, NJ – (NewMediaWire) – March 31, 2023 – Timber Pharmaceuticals, Inc. (“Timber” or the “Company”) (NYSE American: TMBR), a clinical-stage biopharmaceutical company focused on the development and commercialization of treatments for rare and orphan dermatologic diseases, today provided a business update and announced financial results for the fourth quarter and year ended December 31, 2022.

John Koconis, Chairman and Chief Executive Officer of Timber, commented, “Timber had an exciting year in 2022 and achieved several significant milestones. These include launching the pivotal Phase 3 ASCEND trial for our lead asset, TMB-001, in June 2022, after a successful planning meeting with the U.S. Food and Drug Administration (FDA) earlier in the year.  In the meeting, the FDA also reviewed the positive results of the Phase 2b CONTROL study that demonstrated clinically meaningful efficacy with a favorable safety profile, which we believe resulted in our receipt of Breakthrough Therapy designation and Fast Track status for TMB-001 from the FDA in Spring 2022. These designations, combined with the positive Phase 2b results, are assisting in our Phase 3 ASCEND clinical trial recruitment, which has now reached 50%. We’re gratified with the pace of enrollment as we continue to work hard to advance the study and potentially bring relief to the many patients that suffer from chronic congenital ichthyosis (CI).

“During the year we also received official orphan drug designation for TMB-001 from the European Commission (EC) for two severe subtypes of CI, autosomal recessive CI (ARCI), and more recently, X-linked recessive ichthyosis (XLRI). These new designations are in addition to the orphan designation and associated potential for market exclusivity that TMB-001 was previously awarded by the FDA for the U.S. market. We have also expanded our Intellectual Property with approvals in South Korea, Japan, and Australia, with additional applications pending in several other countries. Concurrent with all the achievements in TMB-001’s development program, we are exploring ways to efficiently fund the company including entering into non-dilutive partnerships or licensing agreements,” concluded Mr. Koconis.

2022 Highlights

·       Timber launched its pivotal Phase 3 ASCEND clinical trial in June 2022 after its review and planning meeting with the FDA earlier in the year. The pivotal trial is evaluating TMB-001, a topical isotretinoin formulated using Timber’s patented IPEG^TM delivery system, for the treatment of XLRI and ARCI. The trial is expected to enroll more than 140 patients with moderate to severe CI at leading research centers in the U.S., Canada, Italy, France, and Germany. Recruitment has now reached 50% of the anticipated total enrollment.

·       In Spring 2022, Timber received Breakthrough Therapy designation and Fast Track designation from the FDA for TMB-001. Breakthrough Therapy designation, in particular, is difficult to achieve and, when awarded, is designed to expedite the development and review of drugs that are intended to treat serious or life-threatening conditions and that have demonstrated substantial improvement over available therapy on a clinically significant endpoint on preliminary clinical evidence.

·       Throughout the year, Timber presented the results from the previously completed Phase 2b CONTROL study that demonstrated clinically meaningful efficacy with a favorable safety profile for TMB-001 at multiple medical conferences in the U.S. and Europe. The data was published online in the world renowned, peer-reviewed Journal of the American Academy of Dermatology. Most recently, in March 2023, Timber announced the publication of a sub-analysis of the Phase 2b CONTROL study in Clinical and Experimental Dermatology which showed that treatment with TMB-001 demonstrated greater proportions of participants achieving primary and key secondary endpoints versus vehicle regardless of the subtype of CI.

• For the years ended December 31, 2022 and 2021, Timber recognized revenue of $83,177 and $886,532, respectively. Revenue for all periods consisted of reimbursements from achieving certain clinical milestones in the development of TMB-001, including a portion of a $1.5 million grant from the FDA’s Orphan Products Clinical Trials Grants Program.

·       At December 31, 2022, Timber had approximately $9.1 million in cash, which included $1.3 million in gross proceeds raised through the sale of common stock and warrants in October 2022. Timber ended 2022 with approximately 3.0 million shares of common stock outstanding after giving retroactive effect to a 1-for-50 reverse split of its shares of common stock in November 2022 that was undertaken in order to regain compliance with the NYSE American’s continued listing standards.

For Timber’s complete financial results for the fourth quarter and year ended December 31, 2022, see the Company’s Annual Form 10-K filed with the Securities and Exchange Commission on March 31, 2023.