Crown Laboratories Acquires Xycrobe™ Therapeutics, Inc., an Innovator in Skin Microbiome Technology

Crown Laboratories Invests in Cutting-Edge Technological Capabilities

JOHNSON CITY, Tennessee, May 22, 2019 /PRNewswire/ -- Crown Laboratories, Inc. ("Crown"), a leading, fully integrated skin care company, today announced it has acquired Xycrobe Therapeutics, Inc. ("Xycrobe").

Xycrobe's technology focuses on utilizing the ubiquitous nature of skin microbes by turning them into vehicles for the delivery of biotherapeutics. By developing innovations that take advantage of these microbes, better solutions are possible for an array of clinical indications. Xycrobe technology addresses the needs of patients with inflammatory skin disease through the development of "good" bacteria strains, designed to be used for therapeutic purposes. Xycrobe's technology is challenging the current treatment paradigm for inflammatory skin issues.

The skin microbiome is comprised of good and bad microbes. Depending upon a multitude of factors such as age, sex, environment, genetics and lifestyle, a person may experience a break down or flare in their skin leading to inflammation or even skin infections. Xycrobe has developed patent-pending "probiotic-like" Xycrobes intended to replace pathogenic bacterial flora with microbes expressing skin-healthy biotherapeutics.

"Acquiring Xycrobe Therapeutics is a significant milestone, as it not only allows us to explore the ways we will leverage microbiome science across our portfolio, but also brings a very talented team of scientists to our R&D group," said Jeff Bedard, Crown's President and CEO. "Incorporating this technology into our portfolio will be a major focus and once commercialized, will elevate our place in therapeutic skin care.  I am inspired by the team and the research to date and look forward to significant innovation coming out of this group in the near future."

"Using naturally occurring, skin-healthy microbes to deliver biotherapeutic molecules to the skin allows for safe and controlled treatments," said Thomas Hitchcock, Ph.D., Founder and CEO of Xycrobe and Chief Science Officer of Crown Laboratories. "Current therapies often can have safety or side-effect issues that can limit efficacy and compliance. By using our own skin microbes, we are optimizing our natural skin environment and reducing the need for harsh, system-altering treatments. Xycrobe technology is an important development in improving the way skin treatments are delivered. The opportunities Crown has identified for Xycrobe's technology are synergistic with the vision I had for the company, and I am thrilled to advance to the next stage the remarkable efforts of everyone who was instrumental in getting Xycrobe to this point."

"We continue to seek opportunities that will enhance our portfolio," added David Solomon, Partner of Hildred Capital Partners and Chairman of Crown. "Investing in innovative science to deliver novel skin care treatments supports our mission of providing high quality therapies for our physicians and their patients. Xycrobe's cutting edge microbiome science is a great addition as we continue to build a world class skin care company."

Crown intends to explore use of the Xycrobe technology across its brand portfolio; including its Aesthetics (Bellus Medical), Beauty (Vita Liberata) and Consumer divisions. Financial terms of the transaction were not disclosed.

About Crown Laboratories, Inc.
Crown Laboratories, Inc., a privately held, fully integrated global skin care company is committed to developing and providing a diverse portfolio of aesthetic, beauty, therapeutic OTC and prescription skin care products that improve the quality of life for its customers. As an innovative company with key products such as the first FDA-cleared medical grade microneedling device, SkinPen®, Crown has enjoyed rapid growth and is poised to become a leader in Dermatology. Crown has a robust portfolio of therapeutic OTC skin care products, including Blue Lizard® Australian Sunscreen, PanOxyl® acne wash, Sarna® anti-itch lotion, Zeasorb® and Desenex® anti-fungal powders, Mineral Ice® pain-relieving gel, Keri® Lotion, and Vita Liberata sunless tanning and skin care beauty products. Crown has been listed on the Inc. 5000 Fastest Growing Privately Held Companies List for six consecutive years. For more information about Crown or its products, visit www.crownlaboratories.com.

Forward Looking Statements
In this press release, the use of words such as "expect," "anticipate," "possible," "potential," "believe," "commit," "intend," "continue," "may," "would," "could," "should," or similar expressions is intended to identify forward-looking statements that represent Crown Laboratories management's current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or results, and actual results may differ materially due to a variety of important factors. Such risks and uncertainties may include, but are not limited to: the satisfaction of closing conditions to the investment by Hildred; the possibility that the transaction will not be completed or, if completed, not completed in the expected timeframe; the potential that the expected benefits and opportunities of the transaction may not be realized or may take longer to realize than expected; and adverse litigation or government action. Crown Laboratories undertakes no obligation to update the information contained in this release.