Inovio Biomedical Corporation
AMEX : INO

Inovio Biomedical Corporation
Merck & Co., Inc.
NYSE : MRK

Merck & Co., Inc.

July 13, 2005 06:00 ET

Inovio Biomedical Receives Milestone Payment from Merck Regarding MedPulser® DNA Delivery System

SAN DIEGO--(CCNMatthews - Jul 13, 2005) -

Inovio Biomedical Corporation (AMEX:INO) announced today that it will receive a $2 million milestone payment from Merck & Co., Inc. (NYSE:MRK) resulting from the achievement of a clinical milestone by Merck for a plasmid-based vaccine using Inovio's MedPulser® DNA Delivery System. The milestone relates to Inovio's license and collaboration agreement with Merck that was initiated in May 2004 for the development of certain DNA vaccines. Further development of the product may lead to additional milestone payments and royalties to Inovio.

Inovio will receive this milestone payment for its contribution to the collaboration, which has demonstrated the high level of gene delivery and expression that is thought to be necessary for the induction of a therapeutic immune response. Merck has funded all clinical development costs of this product to date.

"Achievement of this milestone demonstrates Inovio's ability to collaborate with a large pharma partner and achieve timely results," said Avtar Dhillon, MD, Inovio's president and CEO. "Inovio started working with Merck just one year ago to develop the MedPulser for use with DNA vaccines and has moved the product from concept to clinic in a very efficient manner."

About Inovio Biomedical Corporation

Inovio Biomedical Corporation is a late stage biomedical company focused on building an oncology franchise based on its proprietary electroporation therapy. The therapy targets a significant unmet clinical need: the selective killing of cancer cells and local ablation of solid tumors while preserving healthy tissue. Inovio is moving its lead product, the MedPulser® Electroporation Therapy System, through pre-marketing studies for head and neck cancer and skin cancers in Europe, where it has CE Mark accreditation, a U.S. Phase III pivotal study for recurrent head and neck cancer, and a Phase I pancreatic cancer trial. Merck, Vical, Chiron, the U.S. Navy, and other partners are employing Inovio's electroporation technology, which enhances local delivery and cellular uptake of useful biopharmaceuticals, in their development of novel DNA vaccines and gene therapies. Inovio is a leader in electroporation, with 57 U.S. and 125 corresponding foreign issued patents, plus numerous pending patents in the U.S. and abroad. More information can be obtained at www.inovio.com.

This press release contains certain forward-looking statements relating to our plans to develop our electroporation drug and gene delivery technology and to maximize shareholder value. Actual events or results may differ from our expectations as a result of a number of factors, including the uncertainties inherent in clinical trials and product development programs, evaluation of potential opportunities, the level of corporate expenditures, the assessment of our technology by potential corporate partners, capital market conditions, and other factors set forth in the our Annual Report on Form 10-K for the twelve-month period ended December 31, 2004, and our Form 10-Q for the three-month period ended March 31, 2005, and other regulatory filings. There can be no assurance that any product in our product pipeline will be successfully developed or manufactured, or that final results of clinical studies will be supportive of regulatory approvals required to market licensed products.

Contact Information

  • Inovio Biomedical Corporation, San Diego
    Bernie Hertel, 858-410-3101
    Investor Relations
    858-597-0119 (FAX)
    email: investor.relations@inovio.com
    or
    Atkins + Associates
    Rebecca Wong, 858-527-3495
    Media Relations