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ARTICLE | Company News

Cleveland BioLabs, Rusnano OJSC cancer, infectious news

October 3, 2011 7:00 AM UTC

Cleveland BioLabs and the Russian Federation's Rusnano will form a JV called Panacela Labs Inc. (Buffalo, N.Y.) to develop and commercialize products for cancer and infectious diseases. Rusnano will invest up to $26 million in the JV over four years, with an initial investment of $9 million and three additional investments, subject to developmental milestones. Cleveland BioLabs will invest $3 million and use best efforts to obtain a third party-investment of at least $6 million in Panacela within 15 months of the closing date. Both partners have options for additional investments at two and four years. Cleveland BioLabs will initially own 55% of the JV and expects to retain a 51% stake after giving effect to all investments under the terms of the deal. ...