SOURCE: BioMedReports


August 27, 2010 08:00 ET

Cleveland BioLabs Well Positioned as Candidate for Multiple Government Contracts

LOS ANGELES, CA--(Marketwire - August 27, 2010) -  In an exclusive interview with BioMedReports, the CEO & President of Cleveland BioLabs (NASDAQ: CBLI), Michael Fonstein discusses a highly significant development for his company. In the first quarter of this year, the Company submitted a response to the Department of Defense's Request For Proposal (RFP) for development and acquisition of a radiation countermeasure. Cleveland BioLabs engages in the discovery, development, and commercialization of products for human protection from radiation.

"We and the rest of the world are currently awaiting the final contract award to be made public, and we believe CBLB502 is well positioned as a potential award candidate. A potential contract to come from this award is likely to have two primary components: a budget for advanced development of a radiation countermeasure through FDA licensure, and conditional commitments to purchase up to 37,500 doses, upon licensure. While we wouldn't expect the total dollar value of such a contract to exceed a few tens of millions, it would be highly significant in terms of validation, as the DoD is globally recognized as a leader in radiation research. It also potentially sets up a successful program for potential purchases from the even bigger potential customer in the United States, the Biomedical Advanced Research and Development Authority (BARDA) of the Department of Health and Human Services (HHS), whose mandate is to develop and acquire countermeasures for the Strategic National Stockpile," explains Fonstein.

"Based on similar types of acquisitions for other countermeasures that have taken place over the last 2 years, one would expect this type of contract to be valued somewhere in the range of $100-300 million. Then there are other potential foreign buyers, such as Israel, or other countries with a seemingly imminent nuclear threat."

BioMedReports broke news to its subscribers on Thursday that they were hearing some "very loud and credible chatter that long-awaited good news may be on the horizon for Cleveland BioLabs."

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