Panacela Signs Contract For Approximately $4.6 Million With Russian Ministry Of Industry And Trade For Development Of Mobilan; Announces Appointment Of Michael Fonstein As CEO And President
BUFFALO, N.Y., Oct. 23, 2013 (GLOBE NEWSWIRE) -- Cleveland BioLabs, Inc. (Nasdaq:CBLI) today announced that Panacela Labs, Inc., a majority-owned subsidiary of CBLI, has entered into a contract valued at approximately 149 million rubles, or approximately $4.6 million, with the Ministry of Industry and Trade of the Russian Federation for development of Mobilan, a cancer vaccine in preclinical development. Under the contract, the Russian Federation has agreed to match Panacela's funding of Mobilan over a period of approximately three years, for support of preclinical and clinical studies.
Mobilan is a recombinant adenovirus which expresses both toll-like receptor 5 (TLR5) and its agonistic ligand. Administration of Mobilan in animal models leads to constitutive autocrine stimulation of TLR5 signaling causing strong induction of the innate immune system with subsequent development of adaptive anti-tumor immune responses.
Panacela also announced the appointment of Michael Fonstein, Ph.D. as Chief Executive Officer and President replacing, Dmitry Tyomkin, who was recently appointed Chief Executive Officer of Buffalo BioLabs, LLC, a laboratory and preclinical services company."This is Panacela's second development contract with the Russian Ministry of Industry and Trade," noted Dr. Fonstein. "Our goal is to advance two of our product candidates into the clinic in the coming year. We are honored to partner with the Ministry to support a substantial part of our clinical development program." About Panacela Labs Panacela Labs is a biotechnology startup company developing a portfolio of novel treatments in the fields of oncology and infectious diseases. Panacela Labs, Inc. was founded in 2011 as a joint venture between Cleveland BioLabs, Inc. and Open Joint Stock Company "RUSNANO", a Russian investment company, in collaboration with Roswell Park Cancer Institute, Children's Cancer Institute of Australia and Cleveland Clinic Foundation. Panacela Labs is 54.6% owned by Cleveland BioLabs. To learn more about Panacela Labs, please visit the Company's website at http://www.panacelalabs.com About Cleveland BioLabs Cleveland BioLabs, Inc. is a clinical-stage biotechnology company leveraging deep understanding of molecular and cellular mechanisms of biological stress responses to develop a robust pipeline of compounds primarily focused on oncology applications and mitigation of radiation injury. The company's lead compound is being developed as both a radiation countermeasure and a cancer treatment. The Company has three operating subsidiaries, Incuron, LLC, BioLabs 612, LLC and Panacela Labs, Inc., and strategic relationships with the Cleveland Clinic, Roswell Park Cancer Institute, the Children's Cancer Institute Australia for Medical Research and the Armed Forces Radiobiology Research Institute. To learn more about Cleveland BioLabs, Inc., please visit the Company's website at http://www.cbiolabs.com . This press release contains certain forward-looking information about Cleveland BioLabs that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. Words such as "expect(s)," "feel(s)," "believe(s)," "will," "may," "anticipate(s)" and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding the likelihood of receiving funding; our ability to successfully develop and commercialize our therapeutic products; the conduct and results of our various clinical trials; and future performance. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These factors include, among others, the decisions of third parties regarding whether or not to fund the Company through grants; the Company's failure to successfully and timely develop existing and new products; the Company's collaborative relationships and the financial risks related thereto; the Company's inability to obtain regulatory approval in a timely manner or at all; the risks inherent in the early stages of drug development and in conducting clinical trials; the Company's ability to comply with its obligations under license agreements; the Company's history of operating losses and the potential for future losses, which may lead the Company to not be able to continue as a going concern. Some of these factors could cause future results to materially differ from the recent results or those projected in forward-looking statements. See also the "Risk Factors" and "Forward-Looking Statements" described in the Company's periodic filings with the Securities and Exchange Commission. Contact: Rachel Levine, Vice President, Investor Relations Cleveland BioLabs, Inc. T: (646) 284-9439 E: firstname.lastname@example.org
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