Market Overview

Can-Fite Signs Multi-Million Dollar Development and Distribution Agreement for Piclidenoson and Namodenoson in China with CMS Medical

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Upfront and milestone payments total up to $74.5M plus
double-digit royalties

CMS will be responsible for the development, registration and
marketing of the drugs in China

Can-Fite
BioPharma Ltd
. (NYSE:CANF) (TASE:CFBI), a biotechnology
company advancing a pipeline of proprietary small molecule drugs that
address cancer, liver and inflammatory diseases, today announced it has
signed a License, Collaboration and Distribution Agreement with CMS
Medical Venture Investment Limited ("CMS Medical") for the
commercialization of Can-Fite's Piclidenoson for the treatment of
rheumatoid arthritis and psoriasis and Namodenoson for the treatment of
advanced liver cancer and NAFLD/NASH in China (including Hong Kong,
Macao and Taiwan).

Under the terms of the agreement, CMS Medical is making an upfront
payment of $2,000,000 to Can-Fite and is required to pay to Can-Fite
milestone payments of up to $14,000,000 upon the achievement of certain
regulatory milestones and payments of up to $58,500,000 upon the
achievement of certain sales milestones. In addition, the agreement
provides for double-digit royalty payments on net sales.

CMS Medical is a wholly-owned subsidiary of China Medical System
Holdings Limited ("CMS"; SEHK: 867), a specialty pharmaceutical company
based in China, focusing on marketing, promotion and sales of
prescription drugs and other medicinal products to therapeutic
departments in hospitals. CMS builds up its product portfolio for its
target markets by asset acquisition, equity investment, licensing and
distribution as well as in-house R&D. CMS is listed on the Hong Kong
Stock Exchange with a current market capitalization of approximately
HK$34 billion as at August 1, 2018.

According to the agreement, CMS will be responsible for the development
of Piclidenoson and Namodenoson to obtain regulatory approval in China
and shall be further responsible for obtaining and maintaining
regulatory approval in China for the indications described above.
Can-Fite may, at the option of CMS, supply finished product to CMS.

"We are very excited to enter into this agreement with CMS, with their
broad and professional experience in development, registration and
marketing of diverse drugs in the Chinese market and believe that they
are the right partner for us to penetrate this big market," stated Dr.
Sari Fishman, VP Business Development of Can-Fite. "We believe that
CMS's commitment to us is strong validation of our development efforts
to date."

Can-Fite is currently enrolling patients for its Phase III ACRobat™
trial of Piclidenoson for the treatment of rheumatoid arthritis and
plans to shortly initiate patient enrollment for its Phase III Comfort™
trial of Piclidenoson for the treatment of psoriasis. The rheumatoid
arthritis and psoriasis therapeutic market is dominated by biological
drugs that are primarily administered via intravenous injection (IV) and
have potential side effects. Rheumatoid arthritis and psoriasis are huge
unmet need markets, where rheumatoid arthritis is estimated to reach
$35B in 2020 and psoriasis is forecast to reach $9B in 2018.

Phase II studies with Namodenoson for the treatment of advanced liver
cancer (hepatocellular carcinoma, Child Pugh B) and NAFLD/NASH are
currently ongoing. The last patient for the advanced liver cancer trial
was enrolled in August 2017, and treatment of remaining patients is
still ongoing.

About Can-Fite BioPharma Ltd.

Can-Fite BioPharma Ltd. (NYSE:CANF) (TASE: CFBI) is an
advanced clinical stage drug development Company with a platform
technology that is designed to address multibillion-dollar markets in
the treatment of cancer, inflammatory disease and sexual dysfunction.
The Company's lead drug candidate, Piclidenoson, is currently in a Phase
III trial for rheumatoid arthritis and is expected to enter a Phase III
trial for psoriasis in 2018. Can-Fite's liver cancer drug, Namodenoson,
is in Phase II trials for hepatocellular carcinoma (HCC), the most
common form of liver cancer, and for the treatment of non-alcoholic
steatohepatitis (NASH). Namodenoson has been granted Orphan Drug
Designation in the U.S. and Europe and Fast Track Designation as a
second line treatment for HCC by the U.S. Food and Drug Administration.
Namodenoson has also shown proof of concept to potentially treat other
cancers including colon, prostate, and melanoma. CF602, the Company's
third drug candidate, has shown efficacy in the treatment of erectile
dysfunction in preclinical studies and the Company is investigating
additional compounds, targeting A3AR, for the treatment of sexual
dysfunction. These drugs have an excellent safety profile with
experience in over 1,000 patients in clinical studies to date. For more
information please visit: www.can-fite.com.

Forward-Looking Statements

This press release may contain forward-looking statements, about
Can-Fite's expectations, beliefs or intentions regarding, among other
things, market risks and uncertainties, its product development efforts,
business, financial condition, results of operations, strategies or
prospects. In addition, from time to time, Can-Fite or its
representatives have made or may make forward-looking statements, orally
or in writing. Forward-looking statements can be identified by the use
of forward-looking words such as "believe," "expect," "intend," "plan,"
"may," "should" or "anticipate" or their negatives or other variations
of these words or other comparable words or by the fact that these
statements do not relate strictly to historical or current matters.
These forward-looking statements may be included in, but are not limited
to, various filings made by Can-Fite with the U.S. Securities and
Exchange Commission, press releases or oral statements made by or with
the approval of one of Can-Fite's authorized executive officers.
Forward-looking statements relate to anticipated or expected events,
activities, trends or results as of the date they are made. Because
forward-looking statements relate to matters that have not yet occurred,
these statements are inherently subject to risks and uncertainties that
could cause Can-Fite's actual results to differ materially from any
future results expressed or implied by the forward-looking statements.
Many factors could cause Can-Fite's actual activities or results to
differ materially from the activities and results anticipated in such
forward-looking statements. Factors that could cause our actual results
to differ materially from those expressed or implied in such
forward-looking statements include, but are not limited to: the
initiation, timing, progress and results of our preclinical studies,
clinical trials and other product candidate development efforts; our
ability to advance our product candidates into clinical trials or to
successfully complete our preclinical studies or clinical trials; our
receipt of regulatory approvals for our product candidates, and the
timing of other regulatory filings and approvals; the clinical
development, commercialization and market acceptance of our product
candidates; our ability to establish and maintain corporate
collaborations; the implementation of our business model and strategic
plans for our business and product candidates; the scope of protection
we are able to establish and maintain for intellectual property rights
covering our product candidates and our ability to operate our business
without infringing the intellectual property rights of others; estimates
of our expenses, future revenues, capital requirements and our needs for
additional financing; competitive companies, technologies and our
industry; statements as to the impact of the political and security
situation in Israel on our business; and risks and other risk factors
detailed in Can-Fite's filings with the SEC and in its periodic filings
with the TASE. In addition, Can-Fite operates in an industry sector
where securities values are highly volatile and may be influenced by
economic and other factors beyond its control. Can-Fite does not
undertake any obligation to publicly update these forward-looking
statements, whether as a result of new information, future events or
otherwise.

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