Friday, 21 August 2009 09:18
Company's biotechnology activates the immune system and targets the H1N1 flu's hemagglutinin molecule. The treatment apparently induces a defined immune response which could help infected swine flu patients. Shares of Cel-Sci corporation (AMEX: CVM) traded down two days ago after the company announced an agreement to Raise $4.4 Million in a registered direct offering, but shares are likely to rebound after investors hear more regarding the reasons behind the move by company CEO, Geert Kersten.
The strategic maneuver was primarily designed to not only pay off some convertible debt, but also to continue work on a somewhat secretive, yet exciting drug technology which would be directed at helping very ill patients infected with the current form of H1N1.
The CEO told BioMedReports that CEL-SCI expects to give updated communication within the next few weeks on not only that new program, but also another one dealing with ongoing work being conducted against non-changing parts of the virus (which I covered in a recent article). Apparently, the new work will target regions of the hemagglutinin molecule which are highly conserved and essential for the virus' survival.
"We are extremely pleased as this solidifies our balance sheet and allows us to buy out the convertible debt in the near term while taking care of our financial needs for the immediate future," said Kersten. "It will give us the latitude to continue our on-going tests in H1N1 and rheumatoid arthritis. It will allow us to move forward rapidly in the preparation for the Phase III trial for Multikine®, still the most important step for the Company. "
Multikine® is the first immunotherapeutic agent being developed as a first-line standard of care treatment for cancer. The company's flagship product, is also the first of a new class of cancer immunotherapy drugs called Immune SIMULATORs which simulates the activities of a healthy person's immune system.
"The deal was done at a 12.5% premium to the last financing only 60 days ago," said Kersten. "We are now in a much better position to move forward and the strength of balance sheet speaks for itself, as does our ability to raise money twice at improved prices and terms."
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