Navigation Links
Viral Genetics Settles Litigation and Reacquires African Rights for HIV/AIDS Products
Date:1/28/2011

SAN MARINO, Calif., Jan. 28, 2011 /PRNewswire/ -- Viral Genetics, Inc., (Pinksheets: VRAL) and its President, Haig Keledjian, have entered into a binding Release and Settlement Agreement with Timothy and Thomas LLC ("T&T") and its principals (the "Settlement") that was approved by the court. The Settlement ends the almost 5-year-old lawsuit between the parties that was before the United States District Court for the Northern District of Illinois, originally initiated in March 2006, dismissing all claims without admission of liability by any party. Separately, the Company has also paid or settled all legal fees incurred as a result of this litigation during the last several years.

"We are pleased to put this arduous and time-consuming process behind us as we are now completely free to focus on the development of our drug candidates and our new VG Energy subsidiary," said Haig Keledjian, President. "Reacquiring the development and marketing rights to Africa for our HIV/AIDS products is an important result of this settlement given the size of the HIV epidemic in that region and our past level of development there."  

As part of the Settlement the Company terminated the Distribution Management Agreement (the "DMA") with T&T that was the subject of the lawsuit, effectively reacquiring the rights to develop and market HIV/AIDS products in Africa that had previously been granted to T&T for a period of twenty years. In consideration for the DMA's termination, the Company agreed to pay to T&T over the course of three years and pursuant to a Convertible Debenture (the "Debenture") a total of $1,900,000 as follows: $1,000,000 by November 1, 2011; $450,000 by November 1, 2012; and $450,000 by November 1, 2013.

Under the Debenture and subject to certain terms and conditions, at the Company's option it can elect to make these installment payments in cash or in shares of common stock. The conversion price for a payment in shares is equal to the volume-weighted average closing price of the shares for the 20 trading days ending the day prior to each installment due date, not to exceed $0.15. If the Company's common shares trade at or above $0.20, however, the option to receive payment in shares or cash is at T&T's discretion. The Company may also prepay all or any part of the Debenture in cash or stock at any time without penalty, subject to certain terms and conditions. For additional details of the Debenture and Settlement, please see the Interim Financial Report filed with www.otcmarkets.com and the Company's periodic financial reports.

"Our HIV/AIDS technology and intellectual property portfolio have grown considerably in these last five years. We are now free to pursue possible partnerships and joint ventures at a much higher level that better reflect the value of the work," said Monica Ord, Senior Vice President, Viral Genetics. "Our relationships in Africa are more substantial than ever before and this settlement allows us to resume work in a country that desperately needs an effective treatment for AIDS. We are excited to move forward!"

About Viral Genetics, Inc.

San Marino, California-based Viral Genetics discovers and develops drug therapies. Founded in 1994, the biotech company is researching treatments for HIV/AIDS, Lyme Disease, Strep, Staph and drug resistant tumors. A majority-owned subsidiary called VG Energy is dedicated to exploring biofuel and agricultural applications for one of the technologies in its licensed portfolio. Online at www.viralgenetics.com.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS:

This news release contains forward-looking statements that involve risks and uncertainties associated with financial projections, budgets, milestone timelines, clinical development, regulatory approvals, and other risks described by Viral Genetics, Inc. from time to time in its periodic reports. None of Viral Genetics' drug compounds are approved by the US Food and Drug Administration or by any comparable regulatory agencies elsewhere in the world. While Viral Genetics believes that the forward-looking statements and underlying assumptions reasonable, any of the assumptions could be inaccurate, including, but not limited to, the ability of Viral Genetics to establish the efficacy of any of its drug therapies in the treatment of any disease or health condition, the development of studies and strategies leading to commercialization of those drug compounds in the United States, the obtaining of funding required to carry out the development plan, the completion of studies and tests on time or at all, and the successful outcome of such studies or tests. Therefore, there can be no assurance that the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the forward-looking statements should not be regarded as a representation by Viral Genetics or any other person that the objectives and plans of Viral Genetics will be achieved.Contact:Haig Keledjian, Viral GeneticsT: (626) 334-5310Info(at)viralgenetics(dot)com
'/>"/>

SOURCE Viral Genetics, Inc.
Copyright©2010 PR Newswire.
All rights reserved

Related biology technology :

1. A mix of tiny gold and viral particles -- and the DNA ties that bind them
2. Cellectis Meganuclease Technology Used to Efficiently Prevent Viral Infection
3. Nanotrope, Inc. Receives Patent on New Diagnostic Test for Influenza and Other Viral Infections
4. Roche Diabetes Care Forms Human Blue Circle, Supports Viral Video for World Diabetes Day
5. NVHR: Stop Liver Cancer Dead in Its Tracks By Closing Funding Gap for Viral Hepatitis Education, Screening Programs
6. Peregrine Pharmaceuticals Presents Promising Antiviral Data at 2009 Chemical and Biological Defense Science & Technology Conference
7. FLAVORx Helps Families Fight Pandemic H1N1 Influenza Virus By Making Antiviral Medicine Taste Better
8. Viral Genetics Lead Scientist Dr. M. Karen Newell Will Present at 11th Annual SoCalBio Investor and Partnership Conference
9. Adamas Pharmaceuticals to Present Data on Triple Combination Antiviral Drug Therapy for Drug-Resistant Influenza at 2009 ICAAC Annual Meeting
10. Viral Genetics Responds to Rumors of Imminent FDA Filing and Third Party Press Releases
11. NexBio(R) Demonstrates DAS181 (Fludase(R)*), a Broad-Spectrum Drug Candidate, Inhibits Influenza Viral Infection in Human Lung Tissue
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:9/21/2017)... (PRWEB) , ... September 21, 2017 , ... ... HQ office, which includes executive, engineering and manufacturing functions to The LaunchPort™ Accelerator ... The Factory™, provide a full range of manufacturing and business services to its ...
(Date:9/21/2017)... Jersey (PRWEB) , ... September 21, 2017 , ... ... pharmaceutical and clinical research sector professionals, has announced the addition of 5 new ... 11 training - Compliance with Regulation 21 CFR Part 11 on Electronic ...
(Date:9/20/2017)... New Haven, CT (PRWEB) , ... September 20, ... ... therapeutics company, announced today that it has appointed Vishwas Paralkar to the role ... of Cybrexa’s tumor targeting technology. He will report to Cybrexa’s president and CEO, ...
(Date:9/20/2017)... ... September 20, 2017 , ... From industry leaders, sports stars, and Hollywood icons ... Many of these people had lost all hope. Their stories are told ... (pdf) , “Neil takes readers on a riveting journey through the past, ...
Breaking Biology Technology:
(Date:5/23/2017)... robotic gym for the rehabilitation and functional motor sense evaluation of lower ... . The first 30 robots will be available from June in ... The technology was developed and patented at the IIT laboratories and has ... to a 10 million euro investment from entrepreneur Sergio Dompè. ... ...
(Date:4/19/2017)... York , April 19, 2017 ... as its vendor landscape is marked by the presence ... market is however held by five major players - ... Together these companies accounted for nearly 61% of the ... the leading companies in the global military biometrics market ...
(Date:4/11/2017)... PALM BEACH GARDENS, Fla. , April 11, ... biometric identity management and secure authentication solutions, today ... million contract by Intelligence Advanced Research Projects Activity ... technologies for IARPA,s Thor program. "Innovation ... the onset and IARPA,s Thor program will allow ...
Breaking Biology News(10 mins):