CardioVascular BioTherapeutics (CVBT), Inc has entered into its first clinical development agreement for its Coronary Heart Disease drug candidate with Cardio Neo-Genesis, LP. The agreement, dated November 11, 2008 states that CNG can fund up to $15,000,000 of the clinical development for the Company's Coronary Heart Disease (CHD) drug candidate. The agreement also provides for a royalty to CNG payable from 5 per cent of CVBT's cash-flow stream on its CHD drug up to 20 times return to CNG's limited partners.
"CVBT is currently utilizing clinical development agreements to fund and advance our drug development candidates," according to Mickael A Flaa, CVBT's chief financial officer. Flaa continued, "Given the stress in the financial markets at this time, we looked to the lessons of history for a strategy to finance CVBT's drug development program. The clinical development arrangements that CVBT has entered into are similar in structure to those used successfully by Amgen, Genentech, Biogen, and others over 20 years ago to fund their drug development programmes."
"This development agreement is a positive step in advancing CVBT's CHD drug candidate given today's financial markets," said Daniel C Montano, CVBT's CEO. Montano continued, "I believe that CVBT's existing shareholders will benefit from this new source of funding which does not permanently dilute their shareholdings."
CVBT is a biopharmaceutical company developing human FGF-1 for cardiovascular diseases characterized by inadequate blood flow to a tissue or organ.