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
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.
Rachel Levine, Vice President, Investor Relations
Cleveland BioLabs, Inc.
T: (646) 284-9439
Cleveland BioLabs, Inc. Logo
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