Medicago, Inc. Signs $15 Million Agreement With a Major Pharmaceutical Partner
Medicago and its partner are continuing discussions to finalize a licensing agreement which may also include co-promotion rights of Medicago vaccines in certain markets and, if successfully concluded will result in the principal of the loan being applied as upfront payments upon the execution of the licensing agreement. In such an event, Medicago will not be required to pay interest on the loan. Whilst Medicago and its Pharma partner are pursuing discussions together under a term sheet, there can be no assurance that any additional transactions will be successfully concluded between Medicago and its partner.
"This additional investment by a major partner in our company clearly validates our rapid plant-based VLP vaccine technology given their scientific and commercial leadership in vaccines," said Andy Sheldon, President and CEO of Medicago. "This significant agreement provides a non-dilutive infusion of cash for the continued development and commercialization of our vaccines."
Medicago's pipeline includes:
-
The initiation of a U.S. Phase IIa clinical trial for a quadrivalent
seasonal flu vaccine with interim data expected in summer of 2013;
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Phase I clinical trial for an H5N1 VLP vaccine with a new adjuvant that
is ongoing in partnership with the Infectious Disease Research
Institute (IDRI). Interim data are expected in the first quarter of
2013;
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New clinical trial of the H5N1 VLP vaccine designed to determine the
lowest possible dose by two different administration routes (IM and ID)
and combining the vaccine with a GLA adjuvant is planned to start in
spring of 2013, with interim data expected in summer of 2013;
-
GMP process development and a GLP toxicology study for a rabies vaccine
are ongoing;
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Medicago is also working with Mitsubishi Tanabe Pharma under a strategic
alliance to develop a vaccine for rotavirus and at least two additional
vaccine candidates;
- In addition to vaccines, Medicago is conducting research and development in the area of biosimilar products.
About Medicago
Medicago is a clinical-stage biopharmaceutical company developing novel vaccines and therapeutic proteins to address a broad range of infectious diseases worldwide. The Company is committed to providing highly effective and competitive vaccines and therapeutic proteins based on its proprietary VLP and manufacturing technologies. Medicago is a worldwide leader in the development of VLP vaccines using a transient expression system which produces recombinant vaccine antigens in plants. This technology has potential to offer more potent vaccines with speed and cost advantages over competitive technologies, enabling the development of a vaccine for testing in approximately one month after the identification and reception of genetic sequences from a pandemic strain. This production time frame has the potential to allow vaccination of the population before the first wave of a pandemic, and supply large volumes of vaccine antigens to the world market. Medicago also intends to expand development into other areas such as biosimilars and biodefense products where the benefits of our technologies can make a significant difference. Additional information about Medicago is available at www.medicago.com.
Forward Looking Statements
This news release includes certain forward-looking statements or
forward-looking information for the purposes of applicable securities
laws and such statements and information are based upon current
expectations, which involve risks and uncertainties associated with
Medicago's business and the environment in which the business operates.
Any statements contained herein that are not statements of historical
facts may be deemed to be forward-looking, including those identified
by the expressions "anticipate", "believe", "plan", "estimate",
"expect", "intend", and similar expressions to the extent they relate
to Medicago or its management. The forward-looking statements are not
historical facts, but reflect Medicago's current expectations regarding
future results or events. These forward-looking statements are subject
to a number of risks and uncertainties that could cause actual results
or events to differ materially from current expectations, including the
matters discussed under "Risk Factors and Uncertainties" in Medicago's
Annual Information Form filed on March 29, 2012, with the regulatory
authorities. Medicago assumes no obligation to update the
forward-looking statements, or to update the reasons why actual results
could differ from those reflected in the forward-looking statements.
SOURCE Medicago Inc.