AnGes MG, Inc. has licensed exclusive, worldwide rights to use Vical Incorporated’s patented non-viral gene delivery technology in the development and commercialization of DNA-based products encoding Hepatocyte Growth Factor (HGF) for cardiovascular applications. Under the license agreement, Vical will receive an initial upfront payment of $1.0 million, and further development may lead to milestone and royalty payments.

AnGes MG is developing DNA-based delivery of HGF for indications related to peripheral arterial disease (PAD), which affects blood flow in the lower limbs, and ischemic heart disease (IHD), which affects blood supply to the heart muscle. AnGes MG initiated Phase 2 trials in the United States and Phase 3 trials in Japan in 2003 and 2004, respectively, with DNA-based HGF for PAD. The company also initiated Phase 1 trials in the United States for IHD in 2004. AnGes MG has partnered with Daiichi Pharmaceutical Co., Ltd. for worldwide development and commercialization of DNA-based HGF for PAD and IHD.

Vijay B. Samant, president and CEO of Vical said, "We are excited by the pace of their development in an area of tremendous unmet medical need. In addition to validating our international gene delivery intellectual property, our new partnership with AnGes MG offers the potential for rapid advancement into a significant sector of the global healthcare market."

HGF is known to facilitate the growth of new blood vessels. DNA-based delivery is intended to cause production of HGF locally, at the site of injection, for an extended period. The resulting angiogenic effect is expected to alleviate ischemic disease, in which narrowed or diseased blood vessels restrict blood flow. DNA-based HGF may be effective for people who do not sufficiently respond to conventional drugs, balloon catheterization, or surgery.