Additional Information
Market: NASDAQ
Sector: Pharmaceuticals
EPIC: CBLI
Latest Price: 0.35  (1.44% Ascending)
52-week High: 1.24
52-week Low: 0.33
Market Cap: 19.72M
1 year chart
1 day chart
Cleveland BioLabs
www.cbiolabs.com

 

Established in 2003, Cleveland BioLabs is a biotechnology company leveraging its proprietary discoveries around programmed cell death to develop a robust pipeline of drugs for multiple medical and defense applications.

US Dept of Defense awards Cleveland BioLabs $45m contract for radiation counter-measure drug

17th Sep 2010, 3:34 pm by Deborah Sterescu
US Dept of Defense awards Cleveland BioLabs $45m contract for radiation counter-measure drug

Drug discovery company Cleveland BioLabs (NASDAQ: CBLI) has been awarded a $45 million contract from the United States Department of Defense (DoD) to develop and stockpile drug CBLB502 as a way to prevent death from lethal doses of radiation, it said Friday.

The $45 million contract, which was awarded by the US DoD's Chemical Biological and Medical Systems (CBMS) and Medical Identification and Treatment Systems (MITS) departments, is worth roughly 40% of Cleveland BioLabs' $144 million market capitalization.

Under the terms of the contract, CBMS and MITS will initially pay $14.8 million for the company to develop CBLB502 and bring it through to FDA approval.

Once the drug is licensed, the contract then gives the option to purchase $30 million worth of CBLB502 troop equivalent doses.

The DoD selected CBLB502 based on a thorough examination over a span of two years of safety and efficacy data, manufacturing capacity, the company's development plan and proposed schedule, it said.

"We view this initial commitment as the first potential commercial validation of CBLB502 and the beginning of our shift from development to procurement. We believe that CBLB502 will play a significant role in domestic and global biodefense preparedness," said president and CEO of Cleveland BioLabs, Michael Fonstein.

Once licensed, CBLB502 would protect warfighters from the effects of lethal doses of radiation following a radiation disaster, decreasing incapacitation from radiation.

In July, CBLB502 was granted fast track status from the FDA for reducing the risk of death following a radiation disaster, as there is currently no FDA-approved medical counter-measure for this purpose.

CBLB502 is a derivative of a microbial protein that reduces injury from acute stresses, such as radiation and chemotherapy, by mobilizing several natural cell protective mechanisms.

Data from 50 human subjects in an initial Phase I study showed that CBLB502 was well tolerated and that results corresponded to previous results of animal testing.

A second human study of 100 subjects was completed in May, for which analysis is still ongoing.

Cleveland BioLabs uses its discoveries around programmed cell death to develop treatments for cancer and protection of normal tissues from exposure to radiation and other stresses.

The company was up more than 12% on Friday morning, trading at $5.49 as of 10:35am ET on the Nasdaq.

No investment advice


Proactive Investors North America Inc, trades as "Proactiveinvestors USA & Canada".


You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.


You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.


From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.


You understand that we may be providing advertising and/or marketing services to companies mentioned on the site. A full list of companies that are paying for services from us, or our affiliated companies in the UK and Australia can be viewed here