PolyPid Ltd. Reports Third Quarter 2021 Financial Results and Provides Corporate Update Recruitment Progressing as Planned with Approximately 480 Patients Enrolled in Phase 3 SHIELD I Trial of D-PLEX 100 in Abdominal Sur

Ltd. Reports Third Quarter 2021 Financial Results and Provides Corporate Update

Progressing as Planned with Approximately

480 Patients Enrolled in Phase 3 SHIELD I Trial of D-PLEX100 in Abdominal Surgery

FDA Agreement that a Single Pivotal Phase 3 Study is Sufficient for Potential Approval of D-PLEX100 for

the Prevention of Surgical Site Infections in Colorectal Surgery, Company Intends to Target Higher

End of Patient Enrollment Range in SHIELD I to Leverage Key Clinical, Commercial and Financial Benefits

Cash Runway Extends to Year-End 2022, ahead of Prior Forecast of Q2 2022

Conference Call Scheduled for Today

PETACH TIKVA, Israel, November 10, 2021 --

PolyPid Ltd. (Nasdaq: PYPD) ("PolyPid" or the "Company"), a phase 3 biopharmaceutical company focusing

on developing targeted, locally administered, and prolonged-release therapeutics to improve surgical outcomes, today provided a

corporate update and reported financial results for the three and nine months ended September 30, 2021.

Recent Corporate Highlights:

"We continue to expeditiously advance our

multiple development programs, as well as our commercial preparations," said Amir Weisberg, PolyPid's Chief Executive Officer.

"Most importantly, the pace of enrollment in the SHIELD I trial has continued to increase over the last several months and we expect

an even greater acceleration in the months ahead. Having now passed the mid-point in our planned enrollment for SHIELD I, and with over

600 patients now enrolled in both SHIELD I and SHIELD II studies combined, we are well-positioned to leverage the expected clinical, commercial

and financial benefits of targeting the higher end of our patient enrollment range for SHIELD

I. Additionally, we are having ongoing discussions with commercialization partners in the United States, Europe and Asia, based upon the

anticipated data from our Phase 3 trial in 2022."

"We continue to be excited about the compelling

preclinical data being generated by our promising OncoPLEX development platform initially targeting brain tumors. The most recent results

further support our work toward the completion of a preclinical package for the filing of an Investigative New Drug application with the

FDA to potentially initiate a Phase 1/2 clinical trial. We look forward to meeting with the Agency later this month to discuss the clinical

and non-clinical development plan for OncoPLEX in GBM," continued Mr. Weisberg.

"In addition, we are progressing our robust

clinical development program from a position of financial strength. Our cash runway now extends to year-end 2022, a significant improvement

over our prior target of the second quarter of 2022. We continue to have sufficient cash resources to complete the SHIELD I study, prepare

for the submission of a New Drug Application to the FDA and further advance our OncoPLEX program," concluded Mr. Weisberg.

Financial results for the three months ended

Research and development expenses for the three

months ended September 30, 2021 were $7.5 million, compared to $4.2 million in the same three-month period of 2020, as expenses increased

due to the ongoing SHIELD I and SHIELD II Phase 3 clinical trials in abdominal surgery.

Marketing and business development expenses for

the three months ended September 30, 2021 were $0.4 million, compared to $0.3 million for the same period in 2020, as expenses increased

primarily due to an increase in marketing and business development personnel hired in the Company's New Jersey offices.

General and administrative expenses for the three

months ended September 30, 2021 were $2.1 million, consistent with $2.2 million in the prior year period. The decrease was due to lower

non-cash share-based compensation expenses.

For the three months ended September 30, 2021,

the Company had a net loss attributable to ordinary shares of $9.9 million, compared to a net loss of $6.5 million in the three-month

period ended September 30, 2020.

As of September 30, 2021, the Company had cash,

cash equivalents, short-term deposits, and long-term deposits in the amount of $42.0 million, compared to $67.0 million at December 31,

2020. PolyPid expects that its cash on hand will be sufficient to fund operations until the end of 2022.

Financial results for the nine months ended

Research and development expenses for the nine

months ended September 30, 2021 were $20.9 million, compared to $11.9 million in the same nine-month period of 2020, as expenses increased

due to the ongoing SHIELD I and SHIELD II Phase 3 clinical trials in abdominal surgery.

Marketing and business development expenses for

the nine months ended September 30, 2021 were $1.8 million, compared to $0.9 million for the same period of 2020. These expenses increased

primarily due to an increase in marketing and business development personnel hired in the Company's New Jersey offices.

General and administrative expenses for the nine

months ended September 30, 2021 were $6.7 million, compared to $5.5 million in the prior year period. The increase in general and administrative

expenses was due to the increase in costs associated with the Company's status as a publicly

traded company with higher D&O insurance costs.

For the nine months ended September 30, 2021,

the Company had a net loss attributable to ordinary shares of $29.1 million, as compared to a net loss of $31.4 million in the nine months

ended September 30, 2020.

Conference Call Dial-In & Webcast

PolyPid Ltd. (Nasdaq: PYPD)

is a phase 3 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

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 its cash runway and sufficiency of its cash resources, ongoing

clinical trials, plans to use the guidance provided by the FDA to progress with its SHIELD I program, the pace of enrollment in the SHIELD

I trial, the timing of last-patient-in or of top-line results of the SHIELD I trial, the size and design of the SHIELD I trial, potential

initiation of Phase 1/2 clinical trial of OncoPLEX in GBM in 2022 and D-PLEX100 NDA submission timelines. 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 STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except share and