Kitov to Acquire Clinical Stage Candidate CM-24 Creating a Transformational Immuno-Oncology Company - Transaction adds immune oncology candidate to Kitov's pipeline which includes promising NT-219 cancer drug resistance

Kitov to Acquire Clinical Stage Candidate CM-24 Creating

a Transformational Immuno-Oncology Company

- Transaction adds immune oncology candidate to Kitov's pipeline

which includes promising NT-219 cancer drug resistance prevention therapeutic candidate

- Kitov to receive $3.5M investment from prominent

life science funds Orbimed, Pontifax, and Arkin Holdings, each becoming a principal shareholder

- Kitov plans to initiate Phase I/II study with

TEL AVIV, Israel, March 14, 2019 (GLOBE

NEWSWIRE) -- Kitov Pharma (NASDAQ/TASE: KTOV), an innovative pharmaceutical company, today announced it has signed an agreement

to acquire FameWave Ltd., a privately held biopharmaceutical company developing CM-24, a clinical stage monoclonal antibody targeting

CEACAM1, a novel immune checkpoint. Kitov is planning initiation of a Phase I/II study in early 2020 to evaluate the safety and

efficacy of CM-24 in combination with an anti PD-1 inhibitor. Kitov to host a conference call to discuss the transaction. The scheduling

of the call will be announced separately.

"Combining this transaction

with our proprietary NT219 program, Kitov will become a clinical stage oncology company backed by the support of leading global

life science funds. With the NT219 and CM-24 oncology candidates, we are opening an exciting future for Kitov and I'm looking

forward to building on this momentum. We are very pleased that the investment and support of three leading global life science

funds will enable Kitov to advance our clinical programs and expand our institutional investor base," stated Kitov CEO, Isaac

"The acquisition of CM-24 is

a tremendous opportunity for Kitov and our shareholders. We believe CM-24 has the potential to treat recurrent and advanced stage

cancers including ovarian, colorectal, melanoma, lung, bladder and gastric cancers, and that our Phase I/II trial design could

result in a strong display of the drug's efficacy to the benefit of patients and their families. The journey Kitov started

with Consensi 's FDA approval and our recently announced distribution partnership for Consensi in the US, when

combined with our plans to submit an IND for NT-219 in 2019 and the acquisition of CM-24, transforms Kitov into a robust immune-oncology

development company," Mr. Israel concluded.

Preclinical studies provide strong

justification for CM-24's mechanism of action in activating the immune system through multiple pathways as validated by world

renowned researchers at Harvard Medical School and MIT, in an article published in Nature* as well as by Prof.

Gal Markel from the Tel Hashomer Medical Center**. Additional preclinical studies showed that a combination of CM-24

with a PD-1 antibody resulted in a synergistic anti-cancer effect. Kitov plans to explore higher doses and to test CM-24 in combination

with an anti PD-1 inhibitor. A significant amount of data is available for the existing Investigational New Drug (IND) to support

the continuation of the clinical studies.

FameWave will enter into a

joint clinical collaboration agreement, which is now in an advanced stage of negotiation with a major pharmaceutical company,

for a planned Phase I/II study of CM-24 in combination with a PD-1 antibody in early 2020, with preliminary data expected in late

Acquisition Related Financing

As part of the agreement, three leading

life science focused investment funds, Orbimed, Pontifax, and Arkin Holdings, who collectively hold approximately 90% of FameWave,

will invest $3.5 million in Kitov in exchange for newly issued ADSs of Kitov, priced at $1.23 per ADS. Following this investment

and the FameWave share exchange transaction, Orbimed, Pontifax, and Arkin Holdings will each hold approximately 10% of Kitov's

shares on a fully diluted basis.

Kitov is also currently in discussions

with a number of leading healthcare-focused institutional investors, which have expressed interest in investing in Kitov following

completion of the acquisition.

About the Proposed Transaction

Kitov is acquiring 100% of FameWave

from its shareholders in exchange for $10 million worth of its newly issued ADSs with a long term lock-up period, priced at $1.23

per ADS, plus 50% warrant coverage based on an exercise price of $1.98 per ADS with a 4-year term. In addition, Kitov will provide

a loan to FameWave of up to approximately $2 million to be paid to cCAM BioTherapeutics Ltd., a wholly owned subsidiary of Merck

Sharp and Dohme Corp., known as "MSD" in Israel, which discovered CM-24, or to repay certain loans provided by FameWave's

shareholders. In an initial Phase I dose ranging study of CM24 as single agent, no efficacy signals were detected and the decision

was made to discontinue development, although such decision was not due to any known safety risks. MSD is therefore returning the

rights to CM-24 to former cCAM shareholders and founders of FameWave. Based on a review of the Phase I study results by external

scientific advisors retained by Kitov, coupled with their assessment that CM-24 was found to be generally safe, Kitov plans to

explore higher doses in order to reach receptor saturation, and test CM-24 in combination with an anti PD-1 inhibitor in a well-defined

The transaction has been approved

by the boards of Kitov and FameWave and is expected to close during the third quarter of 2019, subject to: approval of Kitov shareholders;

closing of the transaction for the return of CM-24 to FameWave by MSD; finalization by FameWave of the joint clinical collaboration

agreement; and satisfaction of other customary closing conditions. Should the complete transaction not close, Kitov will be entitled

to repayment of the amounts loaned by Kitov out of amounts actually received by FameWave from commercialization transactions of

CM-24. If no such commercialization transaction is consummated within 36 months from termination, Kitov will be entitled to 20%

of FameWave in return for the approximately $2 million loan which was previously provided. Furthermore, should the transaction

not close due to the failure of FameWave to finalize the clinical collaboration agreement, or the failure of certain other closing

conditions to be fulfilled by the current shareholders of FameWave, then Kitov will be entitled to 100% of FameWave in return for

the approximately $2 million loan which was previously provided.

In connection with the proposed acquisition,

Kitov intends to file relevant materials with the Securities and Exchange Commission, or the SEC, including a proxy statement.

Investors and security holders of Kitov are urged to read these materials when they become available because they will contain

important information about Kitov, FameWave and its shareholders and the proposed acquisition. The proxy statement and other relevant

materials (when they become available), and any other documents filed by Kitov with the SEC, may be obtained free of charge at

the SEC web site at www.sec.gov. Investors and security holders are urged to read the proxy statement and the other relevant materials

when they become available before making any voting decision with respect to the proposed transaction.

This communication does not constitute

an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there

be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration

or qualification under the securities laws of any such jurisdiction. The securities of Kitov will be issued to the selling shareholders

in FameWave, and to the investors in the investment transaction, on a private placement basis pursuant to applicable exemptions

from the prospectus requirements under applicable Israeli securities laws and from the registration requirements of the United

States Securities Act of 1933, as amended (the "U.S. Securities Act"). The securities offered have not been registered

under the U.S. Securities Act or any U.S. state or Israeli securities laws, and may not be offered or sold in the United States

or in Israel, or to, or for the account or benefit of, United States persons or persons in Israel absent registration or any applicable

exemption from the registration and/or prospectus requirements of the U.S. Securities Act and applicable U.S. state and/or Israeli

About CEACAM1 and CM-24

CM-24 is a humanized monoclonal antibody

directed against CEACAM1, an immune checkpoint protein belonging to the Human CEA (Carcino-Embryonic Antigen) protein family. Evidence

has shown that CEACAM1 is expressed on tumor infiltrating lymphocytes and is up-regulated in several cancer types. Preclinical

studies have shown evidence that CM-24 enhances the cytotoxic activity of tumor-infiltrating lymphocytes (TILs) against various

CEACAM1-positive tumor cell lines. CM-24 is being developed for multiple oncological indications according to the expression pattern

of its target protein.

Kitov Pharma (Kitov Pharma Ltd.; NASDAQ/TASE:

KTOV) is an innovative pharmaceutical drug development company. Leveraging deep regulatory and clinical-trial expertise, Kitov's

veteran team of healthcare and business professionals maintains a proven track record in streamlined end-to-end drug development

and approval. Kitov's combination drug, Consensi , treating osteoarthritis pain and hypertension simultaneously, was approved

by the FDA for marketing in the U.S and is partnered in the U.S, China and South Korea. In addition, Kitov's NT219, is a

novel patented small molecule designed to overcome cancer drug resistance that is currently in pre-clinical development. By lowering

development risk and cost through fast-track regulatory approval of novel late-stage therapeutics, Kitov plans to deliver rapid

ROI and long-term potential to investors, while making a meaningful impact on people's lives. For more information on Kitov, the

content of which is not part of this press release, please visit http://www.kitovpharma.com.

* Huang Y-H, et al., (2015) Nature,

517(7534): 386-390. doi:10.1038/nature13848