Medgenics Prices Public Offering of Common Stock

Medgenics, Inc. (NYSE MKT:

) today announced the pricing of 5,125,000 shares of its common stock in a previously announced underwritten public offering at a price to the public of $4.10 per share. In connection with the offering, Medgenics has also granted the underwriters a 30-day option to purchase up to an additional 768,750 shares of its common stock. Gross proceeds to Medgenics from the sale of shares are expected to be approximately $21.0 million, excluding any exercise of the underwriters' option to purchase additional shares of common stock. If the underwriters' option is exercised in full, gross proceeds will be $24.2 million. The offering is expected to close on or about December 1, 2014 subject to customary closing conditions. Medgenics intends to use net proceeds from this offering for the following purposes: (i) clinical development of TARGTEPO™ for three renal anemia and two hematological indications, (ii) clinical development of TARGTGLP-2™ for short bowel syndrome (iii) research and development activities with Children's Hospital of Philadelphia under the recently announced collaboration agreement, (iv) advancement of additional preclinical programs, and (v) for general corporate purposes. Piper Jaffray & Co. is acting as the sole book-running manager and JMP Securities LLC, is acting as co-manager for the offering. A shelf registration statement relating to the shares of common stock described above has been previously filed with and declared effective by the U.S. Securities and Exchange Commission (SEC). This press release does not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale is not permitted. This offering is being made by means of a prospectus supplement and related prospectus. A preliminary prospectus supplement relating to the offering has been filed with the SEC and is available on its website at www.sec.gov. Copies of the preliminary prospectus supplement and accompanying prospectus may be obtained from Piper Jaffray & Co. by mail at 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, Attention: Prospectus Department, by telephone at (800) 747-3924 or by e-mail at prospectus@pjc.com.