SELLAS Life Sciences Announces Settlement of Counterclaims Against JGB (Cayman) Newton, Ltd. for $6.6 Million Payment by JGB
November 09 2018 - 8:30AM
SELLAS Life Sciences Group, Inc. (Nasdaq:SLS) (“SELLAS” or the
“Company”), a clinical-stage biopharmaceutical company focused on
the development of novel cancer immunotherapies for a broad range
of cancer indications, today announced that it has agreed to a
settlement with JGB (Cayman) Newton, Ltd. (JGB) regarding Sellas'
counterclaims against JGB which were asserted in the litigation
originally commenced by JGB. As part of the settlement, JGB has
paid SELLAS approximately $6.6 million in exchange for a full
discharge of all claims and counterclaims asserted by SELLAS and
JGB in the litigation. SELLAS and JGB have also agreed to terminate
the debenture agreement and all related agreements, with JGB
releasing all of its interests in the collateral for the debenture.
JGB filed the litigation in connection with a senior secured
debenture entered into by SELLAS’ predecessor company, Galena
BioPharma, Inc., prior to Galena's reverse merger with SELLAS on
December 29, 2017. Sellas’ counterclaims related to breach of
contract by JGB, among other issues.
As SELLAS previously announced, on October 23, 2018, the
U.S. District Court for the Southern District of New York (SDNY)
entered an order granting in full SELLAS’ motion to dismiss the
complaint brought by JGB in connection with the debenture. SELLAS'
counterclaims relating to breach of contract by JGB were not
dismissed, as the court found SELLAS' interpretation of the
contract to be prevailing.
“We are pleased with both the Court’s order dismissing all of
the claims made by JGB and the settlement with JGB of our
counterclaims,” said Dr. Angelos Stergiou, MD, ScD h.c., President
and Chief Executive Officer of SELLAS. “Terminating this legacy
Galena facility and putting the litigation behind us after having
been made whole is an important milestone for SELLAS. The cash
settlement of $6.6 million further bolsters our balance sheet to
support our strategic objectives.”
Dr. Stergiou continued, “We look forward to significant progress
across our clinical development programs before year-end, including
the enrollment of our first patients in our Phase 1/2 basket trial
of galinpepimut-S (GPS) in combination with Keytruda® and the
advancement of our Phase 3 trial of GPS in acute myeloid leukemia.
Furthermore, following our positive data of NeuVax plus trastuzumab
in triple negative breast cancer announced at ESMO two weeks
ago, with a p-value of 0.013 in favor of the active arm, we plan to
hold a meeting with the FDA in December to reach agreement on the
most optimal and expeditious development and regulatory path
forward as well as advancing potential partnering discussions.”
About SELLAS Life Sciences Group, Inc.
SELLAS is a clinical-stage biopharmaceutical company focused on
novel cancer immunotherapeutics for a broad range of cancer
indications. SELLAS’ lead product candidate, galinpepimut-S (GPS),
is licensed from Memorial Sloan Kettering Cancer Center and targets
the Wilms Tumor 1 (WT1) protein, which is present in an array of
tumor types. GPS has potential as a monotherapy or in combination
to address a broad spectrum of hematologic malignancies and solid
tumor indications. SELLAS has Phase 3 clinical trials planned
(pending funding availability) for GPS in two indications, acute
myeloid leukemia (AML) and malignant pleural mesothelioma (MPM) and
is also developing GPS as a potential treatment for multiple
myeloma (MM) and ovarian cancer. SELLAS plans to study GPS in up to
four additional indications. SELLAS has received Orphan Drug
designations for GPS from the U.S. Food & Drug Administration
(FDA) as well as from the European Medicines Agency for AML, MPM,
and MM; GPS also received Fast Track designation for AML, MPM and
MM from the FDA. SELLAS’ second product candidate, nelipepimut-S
(NeuVax™, NPS), is a HER2-directed cancer immunotherapy being
investigated for the prevention of the recurrence of breast cancer
after standard of care treatment in the adjuvant setting. NPS has
received Fast Track status designation by FDA for the treatment of
patients with early stage breast cancer with low to intermediate
HER2 expression, otherwise known as HER2 1+ or 2+, following
standard of care.
For more information on SELLAS, please visit
www.sellaslifesciences.com.
Forward-Looking StatementsThis press release
contains forward-looking statements. All statements other than
statements of historical facts are “forward-looking statements,”
including those relating to future events. In some cases,
forward-looking statements can be identified by terminology such as
“plan,” “expect,” “anticipate,” “may,” “might,” “will,” “should,”
“project,” “believe,” “estimate,” “predict,” “potential,” “intend,”
or “continue” and other words or terms of similar meaning. These
statements, include, without limitation, statements related to the
further development of GPS and NPS and meetings with regulatory
authorities. These forward-looking statements are based on current
plans, objectives, estimates, expectations and intentions, and
inherently involve significant risks and uncertainties. Actual
results and the timing of events could differ materially from those
anticipated in such forward-looking statements as a result of these
risks and uncertainties, which include, without limitation, risks
and uncertainties associated with immune-oncology product
development and clinical success thereof, the uncertainty of
regulatory approval, and other risks and uncertainties affecting
SELLAS and its development programs as set forth under the caption
“Risk Factors” in Exhibit 99.1 in its Current Report on Form 8-K
filed on July 18, 2018 and in its other SEC filings. Other risks
and uncertainties of which SELLAS is not currently aware may also
affect SELLAS’ forward-looking statements and may cause actual
results and the timing of events to differ materially from those
anticipated. The forward-looking statements herein are made only as
of the date hereof. SELLAS undertakes no obligation to update or
supplement any forward-looking statements to reflect actual
results, new information, future events, changes in its
expectations or other circumstances that exist after the date as of
which the forward-looking statements were made.
Investor Contacts:Will O’ConnorStern Investor
Relations, Inc.212-362-1200ir@sellaslife.com
David Moser, JDSELLAS Life Sciences
Group813-864-2571info@sellaslife.com
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