Press Release

Novartis to Acquire Majority Stake in Hard to Treat Diseases' (HTDS.PK) China Subsidiary H1N1 Vaccine Partner for US$125 Million

Hard to Treat Diseases (HTDS)Posted on:10 Nov 09
Novartis to Acquire Majority Stake in Hard to Treat Diseases' (HTDS.PK) China Subsidiary H1N1 Vaccine Partner for US$125 MillionPR NewswireSHENZHEN, China, November 9

SHENZHEN, China, November 9 /PRNewswire/ -- Hard To Treat Diseases (OTC: HTDS) http://www.htdsmedical.com, announcedtoday that Novartis, a US$41 billion international healthcare company, isacquiring an 85% stake in HTDS' H1N1 Vaccine partner, Zhejiang TianyuanBio-Pharmaceutical Co., Ltd., for US$125 million. Novartis of Switzerlandwill begin a five-year, $1 billionChina initiative with two aims: thecompany will dramatically increase its investment in its China R&D facility,and it will seek to make China one of its top three markets worldwide. Thecomments were made by Novartis' CEO, Daniel Vasella, in an interview with TheWall Street Journal. http://www.chinabiotoday.com/articles/20091103_1

HTDS' Chinese subsidiary, Mellow Hope, is the exclusive agent of ZhejiangTianyuan Bio-pharmaceutical for International marketing and sales. ZhejiangTianyuan Bio-pharmaceutical has been granted a H1N1 license on September 24,2009 by the Chinese government agency, SFDA.

Terry Yuan, HTDS' President/CEO said: "We believe that when you start toappreciate what Novartis' commitment to our partner in China fully means, andthe see the large financial commitment to our partner just for the Chinamarket, you can begin to appreciate the enormous value to HTDS of ourexclusive international marketing and sales relationship with ZhejiangTianyuan Bio-Pharmaceutical. Further, the more you appreciate this value, themore you will find yourself understanding our value to them when theyappointed us exclusive agent for international marketing and sales. As MellowHope owns all of registrations, clinical trials and brands for ZhejiangTianyuan's international markets, the new Novartis-Zhejiang-Tianyuan entitywill continue to leverage our assets and expertise in its internationalmarket. The Novartis purchase was announced by Novartis-Zhejiang-Tianyuan onNovember 4, 2009 (see link below)http://www.marketwatch.com/story/novartis-to-buy-85-of-chinese-vaccines-producer-2009-11-04?siteid=yhoof2. HTDS management, elected not to release this immediately, to allow the HTDS management and its advisors to digest and analyse the long term effects of this transaction for HTDS. HTDS management is very optimistic and foresees its relationship and business with Zhejiang Tianyuan will only be further strengthened by the participation of Novartis."

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Novartis reports that it has made the purchase of a majority interest inZhejiang Tianyuan through proposed acquisition of a majority stake for US$125million to expand its human vaccines presence in China. Zhejiang Tianyuan isa privately-held vaccines company providing a competitive product portfolioand pipeline in China, where Novartis has a limited vaccines presence.Tianyuan and Novartis are to collaborate on building a vaccines industryleader targeting unmet medical needs in China, the world's third-largestvaccines market. Acquisition of 85% stake in Tianyuan for approximatelyUS$125 million will require Chinese regulatory and government approvals.

Tianyuan is a privately-owned vaccine company offering a range ofmarketed vaccine products in China and R&D projects focused on variouspreventable viral and bacterial diseases. Tianyuan has been deliveringdynamic and profitable growth, having more than doubled its net sales toapproximately US$25 million in 2008.

About Hard To Treat Diseases (HTDS)

HTDS operates 2 medical subsidiaries in Mainland China (Mellow Hope)http://www.mellowhope.com and Serbia, Europe (Slavica Bio Chem.)(http://www.slavicabiochem.com)

Mellow Hope is China-based and the biggest exporter of BiologicalVaccines in China. It has a product line that encompasses vaccines forinfluenza, tetanus, diphtheria and other diseases; Blood based productsincluding human rabies immunoglobulin; and active pharmaceutical ingredient(or APIs) for injection such as celesta in. In Serbia the company's primaryfocus involves the enhancement and modification of existing approved drugssuch as "Virazole" for the purpose of chemical repair of damage to the CNS(central nervous system), MS (Multiple Sclerosis), SARS, Hepatitis C and HIV.

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Information in this news release may contain statements about futureexpectations, plans, prospects or performance of Hard to Treat Diseases Inc.that constitute forward-looking statements for purposes of the Safe HarborProvisions under the Private Securities Litigation Reform Act of 1995. Thewords or phrases "can be", "expects", "may affect", "believed", "estimate","project" and similar words and phrases are intended to identify suchforward-looking statements. Hard to Treat Diseases Inc. cautions you that anyforward-looking information provided by or on behalf of Hard to TreatDiseases Inc. is not a guarantee of future performance. None of theinformation in this press release constitutes or is intended as an offer tosell securities or investment advice of any kind. Hard to Treat DiseasesInc.'s actual results may differ materially from those anticipated in suchforward-looking statements as a result of various important factors, some ofwhich are beyond Hard to Treat Diseases Inc.'s control. In addition to thosediscussed in Hard to Treat Diseases Inc.'s press releases, public filings,and statements by Hard to Treat Diseases Inc.'s management, including, butnot limited to, Hard to Treat Diseases Inc.'s estimate of the sufficiency ofits existing capital resources, Hard to Treat Diseases Inc.'s ability toraise additional capital to fund future operations, Hard to Treat DiseasesInc.'s ability to repay its existing indebtedness, the uncertainties involvedin estimating market opportunities, and in identifying contracts which matchHard to Treat Diseases Inc.'s capability to be awarded contracts. All suchforward-looking statements are current only as of the date on which suchstatements were made. Hard to Treat Diseases Inc. does not undertake anyobligation to publicly update any forward-looking statement to reflect eventsor circumstances after the date on which any such statement is made or toreflect the occurrence of unanticipated events.

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