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Buffalo biotech firm lands $45 million contract

By David Robinson
News Business Reporter
Published:September 17, 2010

Cleveland BioLabs has won a $45 million contract to potentially supply the U.S. military with tens of thousands of doses of the anti-radiation sickness drug it is developing, the Buffalo biotechnology company said today.

The contract, which includes $15 million to complete development of the drug and options to purchase $30 million in doses that would be stockpiled, is a major victory for Cleveland BioLabs.

"We view this initial commitment as the first potential commercial validation of [its anti-radiation sickness drug] and the beginning of our shift from development to procurement," said Michael Fonstein, Cleveland BioLabs' president and chief executive officer.

The contract from the U.S. Department of Defense will provide important funding for the final stages of testing and development for Cleveland BioLabs' Protectan radiation sickness drug, which currently is in the later stages of its clinical trials.

Those trials so far have shown that the drug can be effective if administered as long as 48 hours after initial exposure. Side effects were described as largely mild or moderate. Those in the trial found that flu-like symptoms, the most common, went away within two to four hours, Cleveland BioLabs executives have said.

In July, Cleveland BioLabs' efforts to develop Protectan as an anti-radiation sickness drug were granted fast-track status for a review by the U.S. Food and Drug Administration. The fast-track status means that Protectan will get a quicker review by federal authorities determining whether the new development-stage drug is safe and effective enough to be approved for use.