SOURCE: BioMedReports


October 01, 2010 07:00 ET

Cleveland Biolabs' Recent Study Results Will Yield Additional Government Funding and Orders

LOS ANGELES, CA--(Marketwire - October 1, 2010) -  The results of Cleveland BioLabs' (NASDAQ: CBLI) second human safety study for CBLB502, a drug under development for the treatment of Acute Radiation Syndrome, have not been fully digested by Wall Street but the data has set into motion future government funding and purchase orders that will impact CBLI's revenue and share price.

CBLB502 is the same drug for which the Company just recently received a $45 million contract from the US Department of Defense Chemical Biological and Medical Systems Medical Identification and Treatment Systems to develop and stockpile as a medical radiation countermeasure.

As BioMedReports' subscribers were told immediately following the announcement of the study results, additional government funding and orders may be underway and could be substantial.

The Obama administration's strategy on revamping American nuclear strategy is re-setting the nation's nuclear posture for a new age in which rogue states and terrorist organizations are greater threats than traditional powers like Russia and China and under the administration's guidance, BARDA and other federal agencies, have allocated considerable financial resources towards development of defense measures such as CBLB502. In fact, the development of CBLB502 thus far has been funded with considerable government dollars as the drug is designed to protect soldiers and other key personnel from the effects of lethal doses of total body irradiation following a nuclear attack or radiation disaster. The drug decreases incapacitation from radiation in order to maintain military operations.

Given the new study results, additional grant monies for CBLI's Radiation Antidote for Defense may be awarded sometime before the end of October, according to BioMedReports' newly published trade bulletin. The news portal estimates that the value of those research dollars could reach $50 million. In addition, foreign governments like Israel, who were waiting for the human study data, could place their own order for defense stockpiling sometime before January. Additional orders for the U.S. stockpile will also likely start rolling in as soon as Q1, 2011.

As CBLI's CEO Michael Fonstein told BioMedReports exclusively in August: "We believe CBLB502 is well positioned as a potential award candidate... 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... Then there are other potential foreign buyers, such as Israel, or other countries with a seemingly imminent nuclear threat."

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