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Vical Incorporated At Credit Suisse Group Healthcare Conference Call Transcript

With that, I will move on to Allovectin-7. It’s first-in-class systemic immunotherapeutics. Immunotherapy is now something that everybody gets excited, but we have been working on this for a long time. I think people are starting to believe that immunotherapy has really a place in the treatment of cancer. We have dosed several hundred patients, I think 900 patients up to date, from doses ranging from 300 micrograms to 2 milligrams. Allovectin’s advantage is it’s given locally but invokes a systemic response, and I will demonstrate that to you in the next few slides.

The other important attribute is it’s very well tolerated. You can see the side-effects of the newly approved therapies and you really understand the contract that Allovectin-7 brings to the table. It has a unique mechanism of action that drives a systemic effect. We have a Fast Track status, we have an Orphan Drug status and we expect the Phase 3 results to be available in the middle of 2012.

What’s the commercial opportunity for Allovectin-7? People say, Vijay, well, you have two new products approved. First of all, those two new products are not cure for melanoma. One is the Bristol-Myers drug Yervoy, and the other is Zelboraf from Roche. They have significant toxicities, they have short-lived responses in some cases. There is plenty of room for additional treatments in the field of melanoma, and I think particularly drugs which have good and safety profile and efficacious. And Allovectin falls into that sweet spot. Quality of life is very important. Allovectin has given an outpatient treating with minimal side effects. The mechanism of action by the way is synergistic with other treatments. We believe them and we actually demonstrated in one of those (inaudible), I will show you some of the preclinical data.

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