World News: 13:30 GMT Friday 9th November 2018. [SELLAS Life Sciences Group via Globe Newswire via SPi World News]
NEW YORK, Nov. 09, 2018 (GLOBE NEWSWIRE) -- 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.”
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 .
David Moser, JDSELLAS Life Sciences Group813-864-2571
Globe Newswire: 13:30 GMT Friday 9th November 2018
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