CEL-SCI Announces Update on Ongoing Arbitration against Former Clinical Research Organization
October 05 2017 - 8:45AM
Business Wire
CEL-SCI Corporation (NYSE American: CVM)
announced today that as it nears the conclusion of its arbitration
with its former clinical research organization (CRO), the Company
has restructured its agreement with the litigation funding firm
Lake Whillans to further incentivize the law firm representing
CEL-SCI in the arbitration.
Geert Kersten, CEO of CEL-SCI said, “We are finally near the end
of this arbitration. Both Lake Whillans, very experienced in
commercial litigation, and CEL-SCI believe that this special
incentive to the law firm representing our interests may be very
beneficial to our shareholders.”
In 2013, CEL-SCI filed an arbitration seeking $50 million from
its former CRO that used to run the Company’s Phase 3 head and neck
cancer study with Multikine. In October 2015, Lake Whillans
Litigation Funding (“Lake Whillans”) agreed to fund the remaining
costs of the arbitration hearing in return for a part of the
proceeds from the hearing. Under the 2015 arrangement with Lake
Whillans, the first $10 million went to Lake Whillans and any
amounts in excess of $10 million would be split 15% to Lake
Whillans and 85% to CEL-SCI.
On October 3, 2017, Lake Whillans Litigation Funding and CEL-SCI
agreed to give an incentive to the law firm, Wilk Auslander, which
is handling the case for CEL-SCI against the former CRO. Pursuant
to this new arrangement, Lake Whillans has agreed to reimburse Wilk
Auslander up to $250,000 for expenses incurred. In addition, Lake
Whillans and CEL-SCI have each agreed to give the law firm of Wilk
Auslander 3.75% of the proceeds in excess of $10 million.
Therefore, the distribution of the proceeds above $10 million, if
awarded, will be 7.5% to Wilk Auslander, 11.25% to Lake Whillans
and 81.25% to CEL-SCI.
About CEL-SCI Corporation
CEL-SCI's work is focused on finding the best way to activate
the immune system to fight cancer and infectious diseases. Its lead
investigational immunotherapy, Multikine (Leukocyte Interleukin,
Injection), is currently being studied in a pivotal Phase 3
clinical trial as a potential neoadjuvant treatment for patients
with squamous cell carcinoma of the head and neck. The study was
designed with the objective that, if the study endpoint, which is
an improvement in overall survival of the subjects treated with the
Multikine treatment regimen plus the current standard of care (SOC)
as compared to subjects treated with the current SOC only, is
satisfied, the study results will be used to support applications
that the Company plans to submit to regulatory agencies in order to
seek commercial marketing approvals for Multikine in major markets
around the world. The Company’s LEAPS technology is being developed
as a therapeutic vaccine for rheumatoid arthritis and is supported
by grants from the National Institutes of Health. CEL-SCI has
patents on Multikine from the US, Europe, China, and Japan.
The Company has operations in Vienna, Virginia, and in/near
Baltimore, Maryland.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. When used in this press release, the words "intends,"
"believes," "anticipated," "plans" and "expects," and similar
expressions, are intended to identify forward-looking statements.
Such statements are subject to risks and uncertainties that could
cause actual results to differ materially from those projected.
Factors that could cause or contribute to such differences include,
an inability to duplicate the clinical results demonstrated in
clinical studies, timely development of any potential products that
can be shown to be safe and effective, receiving necessary
regulatory approvals, difficulties in manufacturing any of the
Company's potential products, inability to raise the necessary
capital and the risk factors set forth from time to time in
CEL-SCI’s filings with the Securities and Exchange Commission,
including but not limited to its report on Form 10-K and 10-K/A for
the year ended September 30, 2016. The Company undertakes no
obligation to publicly release the result of any revision to these
forward-looking statements which may be made to reflect the events
or circumstances after the date hereof or to reflect the occurrence
of unanticipated events.
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version on businesswire.com: http://www.businesswire.com/news/home/20171005005794/en/
CEL-SCI CorporationGavin de Windt,
703-506-9460www.cel-sci.com
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