Electroporation for Vical

Genetronics Biomedical, a late stage developer of oncology and other therapies using electroporation to deliver drugs, nucleic acids, and genes, announces that Vical has exercised its option to establish an exclusive worldwide license and supply agreement to use and purchase Genetronics' MedPulser DNA Delivery System in conjunction with Vical's proprietary DNA delivery technology for a solid tumour application and HIV.

This development and commercialisation agreement broadens the initial option and license agreement that was established in October 2003.

'This agreement emphasises the potential value of our MedPulser DNA Delivery System to facilitate the use of DNA vaccines to treat numerous diseases, including HIV and cancer,' said Dr Avtar Dhillon, Genetronics' president and ceo. 'Vical conducted pre-clinical studies using our electroporation technology, and their decision to establish this agreement is another validation of the instrumental role our company and technology are playing in enabling partners to advance their DNA vaccine programs. We will continue to execute our business strategy of licensing our platform delivery technology to important life sciences companies like Vical and Merck as well as internally developing therapeutic products, such as our cancer therapy, targeting significant unmet clinical needs.'

'Genetronics' electroporation technology has performed well in pre-clinical testing,' said Vijay Samant, ceo of Vical. 'Based on these results, we are advancing toward clinical testing of an initial application with the MedPulser DNA Delivery System in solid tumours and evaluating electroporation for HIV.'

Under the terms of the agreement, Vical receives the right to use Genetronics' proprietary technology for a solid tumour application and HIV, with an option to extend the agreement to include a limited number of additional products. Genetronics will receive an upfront payment as well as milestone payments linked to the successful development of a product. Royalties would be payable on sales of a product utilising the device developed under the agreement. Additional fees would be payable if Vical exercises its option to add additional targets included in this agreement.