PolyPid Ltd. Reports First Quarter 2021 Financial Results and Provides Corporate Update Recruitment Progressing as Planned with Nearly 200 Patients Enrolled into Phase 3 SHIELD I Trial of D-PLEX 100 in Abdominal Surgery

PolyPid Ltd. Reports First Quarter 2021 Financial

Provides Corporate Update

Recruitment Progressing as Planned with Nearly 200 Patients Enrolled into Phase 3 SHIELD I Trial of D-PLEX100 in Abdominal

Recruitment Rate in SHIELD I trial Doubled in the Last Three Weeks

Manufacturing Facility Now Fully Scaled Up and Capable of Supporting at Least First 30 Months of Anticipated Commercial Demand for

Conference Call Scheduled for Today at 8:30 AM ET

TIKVA, Israel, May 12, 2021 -- PolyPid

Ltd. (Nasdaq: PYPD), a late-stage biopharma company aiming to improve surgical outcomes

through locally administered, controlled, extended-release therapeutics, today provided a corporate update and reported financial results

for the three months ended March 31, 2021.

Corporate Highlights:

have made significant progress advancing our promising development programs and continuing our evolution towards successful commercialization,"

said Amir Weisberg, PolyPid's Chief Executive Officer. "Our robust Phase 3 trials for D-PLEX100 for the prevention

of SSIs, SHIELD I and SHIELD II, continue to enroll patients at the expected rate. To this end, we are thrilled to report that the recruitment

rate in SHIELD I trial doubled in the last three weeks and that we have now enrolled nearly 200 patients in the trial. We continue to

anticipate the availability of top-line results for SHIELD I by year-end 2021 and top-line results from SHIELD II by the end of

"We also continue to generate additional

compelling preclinical data with OncoPLEX, including positive safety data in a promising solid tumor indication," continued Mr.

Weisberg. "We are excited to further progress our OncoPLEX development program and potentially initiate a first-in-man Phase 1 clinical

"Our strong balance sheet continues to drive our robust clinical

development program. Our cash runway extends into 2022 and we remain well-positioned to complete the SHIELD I study and conduct SHIELD

II, as well as prepare for the submission of a New Drug Application to the FDA with cash on hand," concluded Mr. Weisberg.

results for three months ended March 31, 2021

Call Dial-In & Webcast Information:

PolyPid's lead product candidate, D-PLEX100, is a

novel drug product candidate designed to provide local prolonged and controlled anti-bacterial activity directly at the surgical site

to prevent SSIs. Following the administration of D-PLEX100 into the surgical site, the PLEX technology enables a prolonged

and constant release of the broad-spectrum antibiotic doxycycline, resulting in high local concentration of the drug for a period of four

weeks for the prevention of SSIs, with additional potential to prevent SSIs caused by antibiotic-resistant bacteria at the surgical site.

D-PLEX100 has received Breakthrough Therapy Designation from the U.S. Food and Drug Administration (FDA) for the prevention

of SSIs in patients undergoing elective colorectal surgery. D-PLEX100 has also received two Qualified Infectious Disease Product

(QIDP) designations as well as two Fast Track designations for the prevention of post-abdominal surgery incisional infection and for the

prevention of sternal wound infection post-cardiac surgery.

PolyPid Ltd. (Nasdaq: PYPD) is a late-stage biopharma company aiming

to improve surgical outcomes through locally administered, controlled, extended-release therapeutics. PolyPid's proprietary PLEX

(Polymer-Lipid Encapsulation matriX) technology pairs with medications, enables precise delivery of drugs at effective release rates,

over durations ranging from several days to months. PolyPid's lead product candidate D-PLEX100 is in Phase 3 clinical

trials for the prevention of sternal and abdominal surgical site infections (SSIs).

For additional company information, please visit http://www.polypid.com

Forward-looking Statements

This press release contains "forward-looking statements"

within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as "expects," "anticipates,"

"intends," "plans," "believes," "seeks," "estimates" and similar expressions

or variations of such words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements

when it discusses statements relating to the expected recruitment for trials, timing of trials and release of the results thereof, the

capacity of the Company's manufacturing facility, the potential benefits of PLEX and OncoPLEX, the sufficiency of the Company's

cash to fund future operations, and all statements (other than statements of historical facts) that address activities, events, or developments

that the Company intends, expects, projects, believes, or anticipates will or may occur in the future. Forward-looking statements are

not historical facts, and are based upon management's current expectations, beliefs and projections, many of which, by their nature,

are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that

management's expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed

in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause

actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description

of the risks and uncertainties affecting the Company, reference is made to the Company's reports filed from time to time with the

Securities and Exchange Commission ("SEC"), including, but not limited to, the risks detailed in the Company's Annual

Report on Form 20-F filed on March 5, 2021. Forward-looking statements speak only as of the date the statements are made. The Company

assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions

or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the

Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates

with respect thereto or with respect to other forward-looking statements.

References and links to websites have been provided as a convenience,

and the information contained on such websites is not incorporated by reference into this press release. PolyPid is not responsible for

the contents of third-party websites.

Dikla Czaczkes Akselbrad

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands (except share and per share data)

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except share and per share data)