CEL-SCI Secures Manufacturing Facility for Multikine Cancer Drug
Biomedical Real Estate Group Backs Construction of Facility
CEL-SCI Corporation announced that it has entered into an agreement with a biomedical real estate group under which CEL-SCI acquires long term use of a dedicated manufacturing facility for its cancer drug Multikine(R). The financial value of this transaction to CEL-SCI is about $15 million. This facility is located near Baltimore, Maryland. Once fully built out to CEL- SCI's specifications, the facility will produce Multikine for both its Phase III clinical trials for head and neck cancer, as well as other cancers, and following marketing approval, for sale. This transaction is of great importance to CEL-SCI because it allows the Company to preserve its cash and, at the same time, pursue the development of its cancer drug in the most prudent manner.
BioRealty, Inc., a privately held real estate firm specializing in the biomedical sector, acquired the facility and is responsible for its build out pursuant to CEL-SCI's specifications. CEL-SCI leases the facility for 20 years, with options to extend the lease or purchase the facility at a later time. BioRealty, Inc. also committed to provide development management services and funding for the build-out of this facility, which, once fully built out, will be able to supply over $1 billion worth of drug. The Company had entered into a letter of intent with BioRealty on this transaction in January 2007.
The manufacturing facility will allow the Company to produce Multikine, a biologic, in the same manufacturing facility for Phase III clinical trials as for commercial production. Regulatory authorities prefer to see biologics such as Multikine produced in the same manufacturing facility for Phase III clinical trials and the sale of the product because this arrangement helps to ensure that the drug lots used to conduct the clinical trials will be consistent with those that will be marketed subsequent to approval.
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