Arch Therapeutics, Inc. confirmed the first shipments of AC5® Advanced Wound System (“AC5”) under the Company's new reimbursement support program (the “Program”). This development represents a significant milestone in the Company's overall commercialization effort, which management believes will support the accelerated growth and utilization of AC5 in doctor's offices and wound care clinics. AC5 is a synthetic self-assembling wound care product that provides clinicians with multi-modal support and utility across all phases of wound healing.

AC5 was cleared by the Food and Drug Administration (“FDA”) for the management of partial and full-thickness wounds, such as pressure sores, leg ulcers, diabetic ulcers, and surgical wounds. The Program seeks to leverage recently announced policy changes from the Centers for Medicare and Medicaid Services (“CMS”) for synthetic skin substitutes while the Company is awaiting a response on its HCPCS application for a unique code for AC5. The Program is also intended to facilitate the Company's engagement with payors to advocate for clinically appropriate AC5 coverage and payment policies.