VIENNA, Va.--(BUSINESS WIRE)--CEL-SCI Corporation (NYSE American: CVM) announced today that as it nears the conclusion of its arbitration with its former clinical research organization (CRO), the Company has restructured its agreement with the litigation funding firm Lake Whillans to further incentivize the law firm representing CEL-SCI in the arbitration.
Geert Kersten, CEO of CEL-SCI said, “We are finally near the end of this arbitration. Both Lake Whillans, very experienced in commercial litigation, and CEL-SCI believe that this special incentive to the law firm representing our interests may be very beneficial to our shareholders.”
In 2013, CEL-SCI filed an arbitration seeking $50 million from its former CRO that used to run the Company’s Phase 3 head and neck cancer study with Multikine. In October 2015, Lake Whillans Litigation Funding (“Lake Whillans”) agreed to fund the remaining costs of the arbitration hearing in return for a part of the proceeds from the hearing. Under the 2015 arrangement with Lake Whillans, the first $10 million went to Lake Whillans and any amounts in excess of $10 million would be split 15% to Lake Whillans and 85% to CEL-SCI.
On October 3, 2017, Lake Whillans Litigation Funding and CEL-SCI agreed to give an incentive to the law firm, Wilk Auslander, which is handling the case for CEL-SCI against the former CRO. Pursuant to this new arrangement, Lake Whillans has agreed to reimburse Wilk Auslander up to $250,000 for expenses incurred. In addition, Lake Whillans and CEL-SCI have each agreed to give the law firm of Wilk Auslander 3.75% of the proceeds in excess of $10 million. Therefore, the distribution of the proceeds above $10 million, if awarded, will be 7.5% to Wilk Auslander, 11.25% to Lake Whillans and 81.25% to CEL-SCI.
About CEL-SCI Corporation
CEL-SCI's work is focused on finding the best way to activate the immune system to fight cancer and infectious diseases. Its lead investigational immunotherapy, Multikine (Leukocyte Interleukin, Injection), is currently being studied in a pivotal Phase 3 clinical trial as a potential neoadjuvant treatment for patients with squamous cell carcinoma of the head and neck. The study was designed with the objective that, if the study endpoint, which is an improvement in overall survival of the subjects treated with the Multikine treatment regimen plus the current standard of care (SOC) as compared to subjects treated with the current SOC only, is satisfied, the study results will be used to support applications that the Company plans to submit to regulatory agencies in order to seek commercial marketing approvals for Multikine in major markets around the world. The Company’s LEAPS technology is being developed as a therapeutic vaccine for rheumatoid arthritis and is supported by grants from the National Institutes of Health. CEL-SCI has patents on Multikine from the US, Europe, China, and Japan.
The Company has operations in Vienna, Virginia, and in/near Baltimore, Maryland.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this press release, the words "intends," "believes," "anticipated," "plans" and "expects," and similar expressions, are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause or contribute to such differences include, an inability to duplicate the clinical results demonstrated in clinical studies, timely development of any potential products that can be shown to be safe and effective, receiving necessary regulatory approvals, difficulties in manufacturing any of the Company's potential products, inability to raise the necessary capital and the risk factors set forth from time to time in CEL-SCI’s filings with the Securities and Exchange Commission, including but not limited to its report on Form 10-K and 10-K/A for the year ended September 30, 2016. The Company undertakes no obligation to publicly release the result of any revision to these forward-looking statements which may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.