VBI Announces Agreement to Sell Manufacturing Capabilities, Certain Related Assets, and Enter Into New License Agreement with Brii Biosciences
February 14 2024 - 6:00AM
Business Wire
- VBI to receive up to $33 million in consideration, subject to
achievement of certain activities, for:
- VBI’s manufacturing capabilities and certain related assets at
Rehovot manufacturing facility
- Intellectual property for VBI-2601, VBI’s hepatitis B
immunotherapeutic candidate
- Exclusive Asia Pacific (APAC), excluding Japan, license for
development and commercialization of VBI-1901, VBI’s glioblastoma
immunotherapeutic candidate
- Following completion of the full transaction, VBI expects its
total debt principal under its current facility with K2
HealthVentures to be significantly reduced to $17 million
VBI Vaccines Inc. (Nasdaq: VBIV) (“VBI” or the “Company”), a
biopharmaceutical company driven by immunology in the pursuit of
powerful prevention and treatment of disease, today announced
agreements whereby Brii Biosciences (“Brii Bio”), subject to
certain activities, is expected to: (i) acquire the intellectual
property for VBI-2601, VBI’s HBV immunotherapeutic development
program, and eliminate payment obligations from the July 2023
agreements between VBI and Brii Bio, (ii) acquire manufacturing
capabilities and certain related assets at VBI’s Rehovot, Israel
manufacturing facility, and (iii) enter into an exclusive license
to develop and commercialize VBI-1901, VBI’s glioblastoma (GBM)
immunotherapeutic candidate, in the Asia Pacific region (APAC),
excluding Japan. Additionally, subject to certain approvals, VBI
and Brii Bio will work together to transfer the manufacturing
technologies of VBI-2601 to a site designated by Brii Bio. VBI
received $2.5 million of consideration upon signing of definitive
documents and is expected to receive up to an additional $30.5
million of consideration, subject to achievement of certain
activities, with a target completion date of June 30, 2024.
Jeff Baxter, President and CEO of VBI, stated: “We believe that
this transaction improves the financial stability of VBI and
balances the potential value creation within our development and
commercial portfolio with a streamlined and focused resource
deployment. Upon successful completion of all transactions, we
anticipate that we will have reduced the long-term burn of the
company, and reduced our debt overhang by about 70%. We remain
steadfast in our belief that our pipeline can have a meaningful
impact on patients, providers, and public health, and we believe
this deal better positions us to deliver on this mission.”
The proceeds from these agreements will be used for reduction of
debt under the Company’s current facility with K2
HealthVentures.
About VBI Vaccines Inc.
VBI Vaccines Inc. (“VBI”) is a biopharmaceutical company driven
by immunology in the pursuit of powerful prevention and treatment
of disease. Through its innovative approach to virus-like particles
(“VLPs”), including a proprietary enveloped VLP (“eVLP”) platform
technology, VBI develops vaccine candidates that mimic the natural
presentation of viruses, designed to elicit the innate power of the
human immune system. VBI is committed to targeting and overcoming
significant infectious diseases, including hepatitis B,
coronaviruses, and cytomegalovirus (CMV), as well as aggressive
cancers including glioblastoma (GBM). VBI is headquartered in
Cambridge, Massachusetts, with research operations in Ottawa,
Canada, and a research and manufacturing site in Rehovot,
Israel.
Website Home: http://www.vbivaccines.com/ News and Resources:
http://www.vbivaccines.com/news-and-resources/ Investors:
http://www.vbivaccines.com/investors/
Cautionary Statement on Forward-looking
Information
Certain statements in this press release that are
forward-looking and not statements of historical fact are
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and are forward-looking information within the meaning of Canadian
securities laws (collectively, “forward-looking statements”). The
Company cautions that such forward-looking statements involve risks
and uncertainties that may materially affect the Company’s results
of operations. Such forward-looking statements are based on the
beliefs of management as well as assumptions made by and
information currently available to management. Actual results could
differ materially from those contemplated by the forward-looking
statements as a result of certain factors, including but not
limited to, the Company’s ability to satisfy all of the conditions
to the consummation of the transactions with Brii described above,
the Company’s ability to comply with its obligations under its loan
agreement with K2 HealthVentures, the impact of general economic,
industry or political conditions in the United States or
internationally; the impact of the COVID-19 pandemic and the
continuing effects of the COVID-19 pandemic on our clinical
studies, manufacturing, business plan, and the global economy; the
ability to successfully manufacture and commercialize
PreHevbrio/PreHevbri; the ability to establish that potential
products are efficacious or safe in preclinical or clinical trials;
the ability to establish or maintain collaborations on the
development of pipeline candidates and the commercialization of
PreHevbrio/PreHevbri; the ability to obtain appropriate or
necessary regulatory approvals to market potential products; the
ability to obtain future funding for developmental products and
working capital and to obtain such funding on commercially
reasonable terms; the Company’s ability to manufacture product
candidates on a commercial scale or in collaborations with third
parties; changes in the size and nature of competitors; the ability
to retain key executives and scientists; and the ability to secure
and enforce legal rights related to the Company’s products. A
discussion of these and other factors, including risks and
uncertainties with respect to the Company, is set forth in the
Company’s filings with the SEC and the Canadian securities
authorities, including its Annual Report on Form 10-K filed with
the SEC on March 13, 2023, and filed with the Canadian security
authorities at sedar.com on March 13, 2023, as may be supplemented
or amended by the Company’s Quarterly Reports on Form 10-Q. Given
these risks, uncertainties and factors, you are cautioned not to
place undue reliance on such forward-looking statements, which are
qualified in their entirety by this cautionary statement. All such
forward-looking statements made herein are based on our current
expectations and we undertake no duty or obligation to update or
revise any forward-looking statements for any reason, except as
required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240214531599/en/
VBI Nicole Anderson Director, Corporate Communications
& IR Phone: (617) 830-3031 x124 Email: IR@vbivaccines.com
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