PolyPid Ltd. (NASDAQ:PYPD) ("PolyPid" or the "Company"), an innovative biopharmaceutical company dedicated to elevating treatment effectiveness, right where care begins, today announced that it has entered into an exclusive commercial partnership agreement (the "Agreement") with Azurity Pharmaceuticals ("Azurity"), a privately held specialty pharmaceutical company, for the commercialization of D-PLEX100 in the United States and Canada for the prevention of surgical site infections ("SSIs").

Under the terms of the Agreement, PolyPid will receive an upfront payment of $15 million due upon signing and an additional near-term milestone payment of $15 million payable upon U.S. Food and Drug Administration ("FDA") acceptance of the D-PLEX100 New Drug Application ("NDA"), which is expected in August 2026. PolyPid is eligible to receive up to approximately $300 million in additional regulatory, development, and sales-based milestone payments. Upon commercialization, the Company will manufacture and supply D-PLEX100 to Azurity for a transfer price and will be entitled to tiered royalties ranging from mid-teen to mid-twenties percentages.