Onconova Therapeutics, Inc. and Trawsfynydd Therapeutics, Inc. Announce Business Combination to Form Traws Pharma, Inc, a Best-in-Class Virology and Oncology Company - Closing cash balance of approximately $28 million ex

Onconova Therapeutics, Inc. and Trawsfynydd

Therapeutics, Inc. Announce Business Combination to Form Traws Pharma, Inc, a Best-in-Class Virology and Oncology

NEWTOWN, PA and Rockville,

MD - April 2, 2024 (GLOBE NEWSWIRE) - Onconova Therapeutics, Inc. (NASDAQ: ONTX) ("Onconova"), and Trawsfynydd

Therapeutics, Inc. ("Trawsfynydd"), a privately-held biotechnology company developing next-generation, best-in-class

antivirals for influenza, COVID and other infectious diseases, today announced that the companies have entered into a definitive merger

agreement to combine in an all-stock transaction (the "Merger"). Under the terms of the agreement, Onconova acquired 100%

of Trawsfynydd's outstanding equity interests. In connection with the transaction and concurrent with the Merger, the combined

company which has been renamed "Traws Pharma, Inc." ("Traws") will trade on NASDAQ under

the new ticker symbol "TRAW", commencing prior to the opening of trading Wednesday, April 3, 2024.

In connection with the Merger,

Traws announced that it will raise $14 million in a committed private placement financing by OrbiMed and Torrey Pines, expected to close

on April 3, 2024. Upon closing of the private placement, Traws expects to have in excess of $28 million of cash and cash equivalents

from the proceeds of the private placement and cash from both companies. These proceeds will be used to advance the Traws' programs

through multiple clinical data catalysts and complete the dose ranging study for narazaciclib.

"I am pleased to announce the combination

of Onconova and Trawsfynydd at this important time, as Trawsfynydd readies to initiate Phase 2 studies in H2 2024 for its lead antiviral

programs for influenza and COVID19, supported by advisors with unparalleled expertise in viral disease, and Onconova is preparing to finalize

the recommended Phase 2 dose (RP2D) for narazaciclib," said Dr. Cautreels incoming Chief Executive Officer of the

Commented Steven Fruchtman, M.D., President

and Chief Executive Officer of Onconova and President and CSO, Oncology of the combined company, "Trawsfynydd has a differentiated

pipeline and an accomplished leadership team poised to advance their lead programs. With a shared focus on developing best-in-class medicines

for patients with unmet needs, we look forward to Traws' continued progress with its anti-viral programs and narazaciclib."

Traws Proprietary Portfolio:

TRX100 (viroksavir): a cap-dependent endonuclease

inhibitor for influenza: Phase 1

Next milestones: H2 2024

TRX01 (travaltrevir): Mpro protease inhibitor

for COVID19: Phase 1

Narazaciclib: CDK 4/6 inhibitor for LGEEC:

Management and Organization

Traws will be led by incoming Chief Executive

Officer, Werner Cautreels, Ph.D.; President and Chief Scientific Officer, Oncology, Steven Fruchtman M.D., (Onconova); Chief Financial

Officer, Mark Guerin (Onconova), Chief Medical Officer, Robert Redfield, M.D., (Trawsfynydd), Chief Scientific Officer, Virology, C. David

Pauza, Ph.D., (Trawsfynydd) and Chief Operating Officer, Nikolay Savchuk, Ph.D., (Trawsfynydd/Torrey Pines), as well as several other

members of the Onconova and Trawsfynydd teams.

Traws' Board of Directors will be comprised

of Trawsfynydd's Chairman Iain Dukes, DPhil (Venture Partner at OrbiMed), Executive Chairman, Werner Cautreels, Nikolay Savchuk,

Ph.D. (General Partner of Torrey Pines) as well as existing Onconova Directors Trafford Clarke, Ph.D, James Marino, J.D. and M. Theresa

Shoemaker and Jack E. Stover.

About the Merger and Private

Onconova issued the following in the transactions:

in connection with the merger, the stockholders of Traswfynydd received an aggregate of 3,549,538

shares of common stock and 10,359.0916 shares of newly issued Series C non-voting convertible preferred stock (with a conversion

ratio of preferred to common at 1:10,000) (the "Series C preferred stock"), and in connection with the private financing,

OrbiMed and Torrey Pines received an aggregate of 496,935 shares of common stock and 1,578.2120 shares of

Series C preferred stock. This represents, on a fully diluted basis, 75.7% for Trawsfynydd, 13.7% for Onconova and 10.6% for

new investors with a combined fully diluted equity value of $132 million (excluding transaction fees). In connection with the transactions,

a non-transferrable contingent value right (a "CVR") will be distributed to Onconova stockholders of record as of the close

of business on April 15, 2024. Holders of the CVR will be entitled to receive certain proceeds received by Onconova, if any, related

to the disposition, net sales or monetization of narazaciclib and rigosertib.

The shares of common stock issuable upon conversion

of the Series C preferred stock issued in the Merger and the private financing shall be subject to stockholder approval in compliance

with the rules of the NASDAQ Stock Market.

Tungsten Advisors served as the exclusive financial

advisor and placement agent to Onconova. Orrick, Herrington & Sutcliffe, LLP and Morgan, Lewis & Bockius LLP are serving

as legal counsel to Onconova. Snell & Wilmer L.L.P. is serving as legal counsel to Trawsfynydd.

Webcast Presentation

The companies will host a webcast presentation

to discuss the proposed transaction tomorrow, April 2 at 8:30 a.m. ET.

Dial-in details are:

Call me : Participants can use Guest dial-in

#s above and be answered by an operator OR click the Call me link for instant telephone access to the event.

Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1663864&tp_key=8103bfd962:

A replay of the webcast will also be available

via Onconova's investor website approximately two hours after the call's conclusion.

About Onconova Therapeutics, Inc.

Onconova is a clinical-stage biopharmaceutical

company focused on discovering and developing novel products for patients with cancer. Onconova has been focused on developing targeted

anti-cancer agents designed to disrupt specific cellular pathways that are important for cancer cell proliferation including the novel,

multi-kinase inhibitor narazaciclib, under evaluation for low grade endometroid endometrial cancer (LGEEC).

About Trawsfynydd Therapeutics, Inc.

Trawsfynydd is an antiviral drug development company

committed to reducing disease and death among people with respiratory viral diseases including Influenza and COVID19. Trawsfynydd combines

excellence in medicinal chemistry with the tools of AI and machine learning, to guide and accelerate the drug development process. We

are especially committed to developing best-in-class treatments for the elderly, immunocompromised and other vulnerable populations who

are at increased risk for severe disease and death from respiratory virus infections.

About Traws Pharma, Inc.

Traws is developing next-generation, best-in-class

antivirals for influenza, COVID and other respiratory infections and narazaciclib. Traws was formed from the business combination of Onconova

Therapeutics, Inc. and Trawsfynydd Therapeutics, Inc. and is headquartered in Newtown, PA and will trade on NASDAQ as "TRAW"

starting on April 3, 2024.

contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities

Litigation Reform Act of 1995, including but not limited to, express or implied statements regarding the structure, the combined company's

listing on Nasdaq; expectations regarding the ownership structure of the combined company; expectations regarding the issuance and value

of CVRs; expectations regarding the conversion of the Series C preferred stock and related stockholder approval; expectations regarding

the structure, timing and funding of the private placement financing, expected proceeds and impact on ownership structure; each company's

and the combined company's expected cash position at the closing of the Merger and the expected cash runway of the combined company

following the Merger and private financing; the nature, strategy and focus of the combined company; the development and commercial potential

and potential benefits of any product candidates of the combined company; anticipated clinical drug development activities, related timelines

and expected milestones; and other statements that are not historical fact. All statements other than statements of historical fact contained

in this communication are forward-looking statements. These forward-looking statements are made as of the date they were first issued,

and were based on the then-current expectations, estimates, forecasts, and projections, as well as the beliefs and assumptions of management.

There can be no assurance that future developments affecting Traws, the Merger or the private placement financing will be those that

have been anticipated.

statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Traws'

control. Traws' actual results could differ materially from those stated or implied in forward-looking statements due to a number