Dallas, Texas 05/28/2014 (FINANCIALSTRENDS) – Inovio Pharmaceuticals Inc (NYSEMKT:INO) announced that VGX Animal Health, Inc. (VAH), the company’s 90%-owned subsidiary, has now concluded the agreement for sale of its animal-health assets to the Plumb line Life Sciences of Korea. These assets that are being transferred include the exclusive license with INO for the animal applications of the growth hormone-releasing-hormone technology & the animal DNA vaccines as well as the non-exclusive licenses to INO electroporation-delivery systems. Also, VGX Animal Health will receive $2M in cash in the multiple payments and 20 percent of these outstanding shares of PLS.
VAH’s 20 percent equity-ownership position in PLS will also be maintained without any dilution upto $10M of the additional equity fund- raising by PLS. INO will also receive the milestone payments & the royalties on its product sales. The company retains human applications of the GHRH technology. President and CEO, of the company, Dr. J. Joseph Kim, said that INO is very sharply focused on the human immunotherapy products, and consequently they own very promising assets which are also not being allocated the appropriate resources.
The company’s animal and GHRH product candidates have very significantly improved cancer-related-morbidity in dogs & increased herd-productivity in the live-stock animals. They are very pleased to monetize the assets with the deal that will result in the committed development of the products as well as market opportunities.
Positive results on study
In separate news, Inovio Pharmaceuticals Inc (NYSEMKT:INO) has announced that the company’s novel and DNA-based therapeutic monoclonal antibody that is targeting the Chikungunya virus has completely protected the mice from the lethal CHIKV challenge. In the pre-clinical study, the prototype DNA plasmid-construct encoding for the monoclonal-antibody for the CHIKV envelope protein had been created using INO’s patented DNA -optimization technology & delivered with the CELLECTRA® device. These results were all presented as the poster at – 17th Annual Meeting of American Society of Gene and Cell Therapy at Washington, DC.