SAN DIEGO, Oct. 26 /PRNewswire-FirstCall/ -- Genetronics Biomedical Corporation , a late stage developer of oncology and other therapies using electroporation to deliver drugs, nucleic acids, and genes, announces that Vical Incorporated has exercised its option to establish an exclusive worldwide license and supply agreement to use and purchase Genetronics' MedPulser(R) DNA Delivery System in conjunction with Vical's proprietary DNA delivery technology for a solid tumor application and HIV. This development and commercialization agreement broadens the initial option and license agreement that was established in October 2003.
"This agreement emphasizes the potential value of our MedPulser(R) DNA Delivery System to facilitate the use of DNA vaccines to treat numerous diseases, including HIV and cancer," said Avtar Dhillon, MD, Genetronics' president and CEO. "Vical conducted pre-clinical studies using our electroporation technology, and their decision to establish this agreement is another validation of the instrumental role our company and technology are playing in enabling partners to advance their DNA vaccine programs. We will continue to execute our business strategy of licensing our platform delivery technology to important life sciences companies like Vical and Merck as well as internally developing therapeutic products, such as our cancer therapy, targeting significant unmet clinical needs."
"Genetronics' electroporation technology has performed well in pre-clinical testing," said Vijay Samant, CEO of Vical. "Based on these results, we are advancing toward clinical testing of an initial application with the MedPulser(R) DNA Delivery System in solid tumors and evaluating electroporation for HIV."
Under the terms of the Agreement, Vical receives the right to use Genetronics' proprietary technology for a solid tumor application and HIV, with an option to extend the agreement to include a limited number of additional products. Genetronics will receive an upfront payment as well as milestone payments linked to the successful development of a product. Royalties would be payable on sales of a product utilizing the device developed under the agreement. Additional fees would be payable if Vical exercises its option to add additional targets included in this agreement. Further financial details of the transaction were not disclosed.
About Genetronics Biomedical Corporation
Genetronics Biomedical Corporation is a late stage biomedical company focused on building an oncology franchise based on its proprietary electroporation therapy. The therapy targets a significant unmet clinical need: the selective killing of cancer cells and local ablation of solid tumors while preserving healthy tissue. The company is moving its lead product, the MedPulser(R) Electroporation Therapy System, through pre-sales studies for head and neck cancer in Europe, where it has CE Mark accreditation, and a U.S. Phase III pivotal study for recurrent head and neck cancer. Merck, Vical, Chiron, the US Navy and other partners are also employing Genetronics' electroporation technology, which facilitates local delivery of drugs, nucleic acids, and genes, in their development of novel DNA vaccines and gene therapies. Genetronics is a leader in electroporation, with over 240 patents worldwide that are issued, allowed or pending. More information can be obtained at http://www.genetronics.com/.
This press release contains certain forward-looking statements relating to Genetronics' plans to develop its electroporation drug and gene delivery technology and to maximize shareholder value. Actual events or results may differ from Genetronics' expectations as a result of a number of factors, including the uncertainties inherent in clinical trials and product development programs, evaluation of potential opportunities, the level of corporate expenditures, the assessment of Genetronics' technology by potential corporate partners, and capital market conditions, and others set forth in the Genetronics Annual Report, on Form 10-K for the 12-month period ended December 31, 2003, and the Form 10-Q for the 3-month period ended June 30, 2004, and other regulatory filings. There can be no assurance that any product in the Genetronics product pipeline will be successfully developed or manufactured, or that final results of human pilot studies or clinical studies will be supportive of regulatory approvals required to market licensed products. The American Stock Exchange has not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
Genetronics Biomedical Corporation