Our lead product, JBT-101, is an orally active non-psychotropic
CB1/CB2 agonist that has reduced penetration of the blood brain
barrier and consequently reduced CNS side effects normally associated
with cannabinoids.  The current body of knowledge of cannabinoids in
neuropathic and inflammatory pain suggests that CB1 and CB2
receptors play an important role in the initiation and maintenance of
peripheral, spinal and central neurological and immune mechanisms
related to nociception, sensitization, pain signal transmission and pain
processing. JBT-101 has a high affinity for both CB1 and CB2 receptors
with a Ki for hCB1 of 5.7nM and for hCB2 of 56nM.

JBT-101 has shown to be effective in 15 animal models of pain and
inflammation. JBT-101 has been evaluated in a number of safety
pharmacology and toxicology studies to assess potential effects on
cardiovascular, CNS, gastrointestinal, renal, and respiratory
functioning.  Three clinical studies have been conducted to date for
JBT-101 to establish pharmacokinetics, safety, efficacy and tolerability
with a total of 155 patients and healthy volunteers have been treated.  

A single phase 2 study in chronic refractory neuropathic pain patients
was conducted with JBT-101.  The study reveals a strong analgesic
signal in the primary pain efficacy endpoint and a clinically meaningful
benefit of the secondary endpoints.

JBT-101 is currently in clinical development for the treatment of
osteoarthritis and other pain indications where it is expected to offer
relief from both pain and inflammation.

Osteoarthritis (OA) is a type of inflammation that effects joints –
primarily knees, hips, and hands. It is characterized by inflammation
and pain that is caused by the breakdown and eventual loss of the
cartilage in joints. OA affects more than 21 million people, especially as
people get older, and more women than men. Other risk factors
include genetic, weight and life style considerations. X-rays that show
loss of joint cartilage, narrowing of the joint space between adjacent
bones and bone spur formation, typically diagnose OA. OA
symptoms include joint pain, and limitation of joint function due to
inflammation, with joint destruction and cartilage loss over time.

More advanced cases result in severe pain, joint dysfunction and
destruction, requiring joint replacement surgery. Surgery is generally
reserved for those patients with OA that is particularly severe
and unresponsive to medication. Currently around 300,000 hip
replacements and 500,000 knee replacements are conducted annually.
It is estimated that by 2015, 600,000 hip replacements and 1.5 million
knee replacements will be performed (Arthritis Care & Research 2004).
Although joint replacement surgery becomes more common, there are
risks involved due to infection, blood clot formation, damage of blood
vessels and nerves near the joint, loosening and dislocation of the
joint. In 2005, $11 billion was spent in the US on 500,000 knee
replacement procedures.

The symptoms can be treated with over-the-counter treatments (such
as NSAIDs (Aspirin, Ibuprofen, Ketoprofen, Naproxen), Tylenol,
Glucosamine and Chondroitin). Prescription drugs for OA include COX-2
inhibitors, which were designed to have less toxicity to the stomach
and bowels than other NSAIDs. COX-2 inhibitors have now increasingly
been associated with serious cardiac side effects and are increasingly
less prescribed. More advanced cases are treated with opioids;
however, these drugs have significant side effects.

The OA drug therapy market is forecast to grow steadily and to reach
$7 billion by 2015 (December 2006; BioPortfolio; Datamonitor).

Pain is one of the most common medical conditions effecting over
85 million Americans annually. Chronic pain, defined as pain lasting
several days, accounts for over 100 million doctor office visits per
year; medications that can effectively treat chronic pain without
producing side effects such as dependence, psychotropic effects,
nausea and constipation present a large unmet medical need. It is
estimated that the pain market exceeds $30 billion while the impact on
the economy is greater than $100 billion due to lost productivity. The
table below shows the number of patients in some of the largest pain
indications. While JB Therapeutics is initially focused on osteoarthritis,
other indications such as lower back pain and peripheral diabetic
neuropathy are also of interest.

Pain Indication	US Occurence (yr)
Chronic Lower Back Pain	32,000,000
Migraine	28,000,000
Osteoarthritis	21,000,000
Fibromyalgia	4,000,000
Peripheral Diabetic Neuropathy	3,500,000
Rheumatoid Arthritis	2,100,000
Gout	2,100,000
Postherpetic Neuralgia	1,000,000
Cancer Pain	500,000
Polymyalgia Rheumatica	450,000

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