Navigation Links
CEL-SCI Corporation Releases Letter to Shareholders
Date:2/20/2009

VIENNA, Va., Feb. 20 /PRNewswire-FirstCall/ -- The following letter is being released by CEL-SCI Corporation (NYSE Alternext US: CVM) to its shareholders:

Dear Fellow Shareholders:

I am writing today to provide you with a review of 2008 as well as to update you on our plans for dealing with the current financial downturn. In looking back at the last year, I see a year of meaningful accomplishments which put CEL-SCI in a valuable position, and among a very select group of companies that have a completely novel medicine with blockbuster potential ready to go into a Phase III clinical trial.

Key Company highlights of 2008:

  • We extended our Multikine licensing agreement with Orient EuroPharma of Taiwan (a leading pharmaceutical company in Taiwan) to cover additional countries in the Far East. Orient EuroPharma will also participate in and pay for part of our Phase III trial.

  • At the end of 2008 we took delivery of the Multikine manufacturing facility in Baltimore. This facility will supply Multikine for the Phase III clinical trial as well as commercial sale following approval. We have also designed the facility to be used as a contract manufacturing facility during those times (e.g., during certain times in the Phase III study) when we will not be producing Multikine. This lucrative business could quickly become a multi-million dollar revenue generator for CEL-SCI.

  • We presented very promising data on a new rheumatoid arthritis vaccine discovered by CEL-SCI scientists. The data presented was as good as that achieved with Enbrel, a leading treatment for rheumatoid arthritis.

  • We started planning and pricing our global clinical trial designed to lead to marketing approval for Multikine. The recent strength of the dollar will reduce our Phase III study costs by several million dollars.

While we are pleased by these accomplishments, we also recognize that there are major challenges due to the severe financial downturn. This downturn has affected all of us, but we have taken immediate action. We very quickly reduced our expenditures and expanded our discussions with various pharmaceutical companies for a world-wide Multikine partnership. Things are very difficult all around for most companies, but we are seeing new strength in the bigger biotechnology names. This will hopefully trickle down to the smaller ones like us as well. The huge buyouts in the industry, Pfizer buying Wyeth and Roche trying to buy Genentech, will add over $100 billion in liquidity to the industry, and that too should help us down the road.

Let me share with you how we at CEL-SCI are dealing with and planning for recovery from this financial downturn. In our opinion, during such a difficult time as this you cannot rely on one strategy alone. Therefore we are pursuing the following multi-pronged strategy. To help us with this process we have hired BroadOak Capital Partners, an investment bank with a comprehensive focus on the life sciences industry.

  1. We are working on licensing agreements for Multikine to pay for the Phase III trial because raising the amount of money required for the trial at the current prices would be harmful to our shareholders;
  2. We are working on a joint venturing agreement for the same reason;
  3. We are in discussions to use our manufacturing facility as a contract manufacturing facility while it is not being used to produce Multikine;
  4. We have also signed a $5 million line of credit to be used if necessary. This line is not intended to be our primary funding source but does serve as additional insurance to shareholders;
  5. We have a few other, some of them "out of the box" ideas, ongoing.

We hope to bring at least one of these projects to a conclusion very soon.

We cannot change the economic climate or the damage that the financial crisis has caused to the countless stocks, us included, but we are trying to structure our future steps to create the greatest value for CEL-SCI shareholders. We are being very careful and deliberate, working closely with our various partners, suppliers, etc as we adapt to the current environment.

We believe that as a cancer company ready to start a pivotal Phase III clinical trial with a completely novel and non-toxic cancer therapy, we are well positioned for licensing, joint venture and other business arrangements. In normal times these deals might already have been completed a while ago and we would have already started the Phase III trial. In the last few months almost all investments have been hit hard and everything just seems to take longer. Our valuation is currently very low. However, please do not confuse our share price with the real underlying value of the company. One announcement can change the share price dramatically. We have created a late stage cancer company with very large potential both to help patients and create profit, particularly since Multikine is not toxic. What is the value of such a product? Once proven to work, probably billions of dollars. Therefore I believe that our value should be much higher today than the current share price, particularly since a cancer drug is not really related to the economic conditions. If we are successful in just some of the projects listed above, the additional value should very quickly be recognized and the current times will be quickly forgotten.

In closing, we believe that the immune system holds the key to treating cancer. We believe that Multikine will be a multi-billion dollar drug because it works with the body to destroy those tumor metastases thought to be responsible for recurrence of the tumor. In our Phase II studies, Multikine when given for only 3 weeks prior to the normal treatment was able to eliminate all tumor in 12% of the patients, reduce the number of tumor cells by an average of 50% in the treatment group and increase long-term overall survival by 33%. This is why you are a shareholder in CEL-SCI! Tell a friend about our great results.

We thank you for your continued support.

Sincerely,

Geert Kersten

Chief Executive Officer

When used in this report, the words "intends," "believes," "anticipated" and "expects" and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties which 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 or finalize necessary agreements and the risk factors set forth from time to time in CEL-SCI Corporation's SEC filings, including but not limited to its report on Form 10-K for the year ended September 30, 2008. 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.


'/>"/>
SOURCE CEL-SCI Corporation
Copyright©2009 PR Newswire.
All rights reserved

Related medicine technology :

1. CEL-SCI Announces Expansion of Exclusive Licensing Agreement for Cancer Drug Multikine
2. CEL-SCI Enters Agreement With National Institutes of Health Clinical Center To Determine the Molecular Basis of Multikine Anti-Tumor Effect
3. CEL-SCI Expects to Take Delivery of New Manufacturing Facility on October 8, 2008
4. Data Suggest CEL-SCIs CEL-2000 Vaccine Prevents or Retards Permanent Damage of Rheumatoid Arthritis
5. CEL-SCI Corporation Reports First Quarter Financial Results
6. CEL-SCI Corporation Announces 2007 Financial Results
7. Crystal Research Associates, LLC Issues Executive Informational Overview(R) (EIO(R)) on CEL-SCI Corporation
8. CEL-SCI to Present at Rodman & Renshaw 9th Annual Healthcare Conference
9. CEL-SCI CEO to Present at the International Society for Pharmaceutical Engineering 2007 Chesapeake BioShowcase
10. CEL-SCI Presents Data for CEL-1000 as a Vaccine Adjuvant with Recombinant Hepatitis B Virus Protein
11. CEL-SCI CEO to Present Tomorrow at the Biotech / Pharma / Healthcare On-Line Forum
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/24/2016)... 24, 2016  Arkis BioSciences, a leading innovator ... more durable cerebrospinal fluid treatments, today announced it ... funding is led by Innova Memphis, followed by ... private investors.  Arkis, new financing will accelerate the ... market release of its in-licensed Endexo® technology. ...
(Date:6/23/2016)... DUBLIN , June 23, 2016 ... "Dialysis Devices Global Market - Forecast to 2022" report ... is the treatment method for the patients with kidney failure, ... and excess fluid from the patient,s blood and thus the ... sodium, potassium and chloride in balance. Increasing ...
(Date:6/23/2016)... 23, 2016 Research and Markets ... Market by Type (Organic Chemical (Sugar, Petrochemical, Glycerin), Inorganic ... Coating, Parenteral) - Global Forecast to 2021" report ... The global pharmaceutical excipients market is projected to ... of 6.1% in the forecast period 2016 to 2021. ...
Breaking Medicine Technology:
(Date:6/26/2016)... ... June 27, 2016 , ... Quality metrics are proliferating in cancer care, and ... in the eye of the beholder, according to experts who offered insights and commentary ... of Managed Care. For the full issue, click here . , For the ...
(Date:6/26/2016)... ... June 26, 2016 , ... Many women are ... with endometriosis. These women need a treatment plan to not only alleviate symptoms ... can help for preservation of fertility and ultimately achieving a pregnancy. The specialists ...
(Date:6/25/2016)... ... June 25, 2016 , ... First Choice Emergency Room , the largest ... as the Medical Director of its new Mesquite-Samuell Farm facility. , “We are ... Mesquite location,” said Dr. James M. Muzzarelli, Executive Medical Director of First Choice Emergency ...
(Date:6/24/2016)... ... June 24, 2016 , ... A recent article published ... unfamiliar with. The article goes on to state that individuals are now more comfortable ... less common operations such as calf and cheek reduction. The Los Angeles area medical ...
(Date:6/24/2016)... ... June 24, 2016 , ... Global law firm Greenberg Traurig, P.A. announced that ... chosen by their peers for this recognition are considered among the top 2 percent ... special honors as members of this year’s Legal Elite Hall of Fame: Miami ...
Breaking Medicine News(10 mins):