Cleveland BioLabs Sees Promise in Cancer Drug to Negate Chemo Side Effects

Sep.11.09 | About: Cleveland BioLabs, (CBLI)

Cleveland BioLabs, Inc. (NSDQ: CBLI) has granted an exclusive China license for Protectan CBLB612, an investigational cancer drug, to Zhejiang Hisun Pharmaceutical Co. Ltd. (SHSE: 600267). In animal studies, the drug has been shown to stimulate hematopoietic stem cell proliferation and mobilization. Cleveland BioLabs says the drug shows promise as a treatment for the negative side effects of chemotherapy.

Cleveland BioLabs received $1.65 million upfront for the license and will receive a 10% royalty on sales over the 20-year lifespan of the agreement. If Protectan CBLB612 does not receive patent protection, the royalty will be reduced to 5%. Zhejiang Hisun will be responsible for obtaining SFDA approval of the drug.

Michael Fonstein, President and Chief Executive Officer of Cleveland BioLabs, said in a statement that the company would use the insights gained from preclinical and clinical data produced by Zhejiang Hisun in its own work to obtain approval of the drug from the FDA.

According to Cleveland BioLabs, a single injection of Protectan CBLB612 produced a “favorable” comparison with multiple injections of granulocyte-colony stimulating factor (G-CSF) drugs that are given to counteract the side-effects of chemotherapy treatments. These commonly prescribed drugs include Neupogen, Granocyte and Neulasta.

Since its founding in 1956, Zhejiang Hisun has become a leading API manufacturer, producing both antibiotics and oncology drugs. It was listed on the Shanghai A Share Stock Exchange in 2000.

According to one source, Cleveland BioLabs has been focused on the use of another version of Protectan as a protection against the harmful effects of radiation oncology treatments.

Disclosure: none.