Medicago Signs $15 Million Non-Dilutive Loan Agreement With A Major Pharmaceutical Partner
- Continuing discussion towards further cooperation -
QUEBEC CITY, Jan. 17, 2013 /PRNewswire/ - Medicago Inc. (TSX: MDG; OTCQX: MDCGF), a biopharmaceutical company focused on developing highly effective and competitive vaccines based on proprietary manufacturing technologies and Virus-Like Particles (VLPs), today announced the execution of $15,000,000 loan agreement with a major Pharmaceutical company. The principal of the loan is repayable on January 14, 2014 but can be extended by Medicago at its option until January 14, 2016 and will bear an interest rate of not more than 10% per year. Interest on this loan will be paid quarterly.
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;
- 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;
- 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;
- 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.
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