Protein Sciences Announces Closing of $6 Million Financing and Partnership in Diabetes Vaccine

Jan 09, 2006, 00:00 ET from Protein Sciences Corporation

    MERIDEN, Conn., Jan. 9 /PRNewswire/ -- Protein Sciences Corporation
 announced today that it closed a $6 million financing with three investors,
 Diamyd Medical AB (OMX: DIAMB) of Sweden ("Diamyd"), Pacific Rim Ventures Co.,
 Ltd. of Japan and a family fund. This brings the total amount raised in the
 past 18 months to approximately $9 million, all of which is now represented by
 Series F Notes that will become equity by the end of 2006.
     In a separate but related event, PSC signed a contract relating to
 Diamyd's lead product, a therapeutic diabetes vaccine called "Diamyd(TM)."
 PSC will prepare and file an Investigational New Drug Application with the
 U.S. Food & Drug Administration (FDA) for the vaccine and will manufacture
 clinical materials, including product suitable for Phase III human clinical
     Daniel D. Adams, President and CEO said, "We are extremely pleased with
 these two events. The funds raised earlier allowed us to conduct a highly
 successful Phase II/III field trial of FluBlOk(TM), our patented, recombinant
 influenza vaccine, which resulted in FDA granting our vaccine 'accelerated
 approval' status. We believe the new funds are sufficient to allow us to take
 advantage of that status and secure market approval for FluBlOk in less than
 two years."  He added, "By structuring the financing so that all previous debt
 converted into Series F Notes, we insure that we will be debt-free not later
 than the end of this year."
     Commenting on the Diamyd contract, Mr. Adams said, "We developed a very
 close relationship with Diamyd over several years and have great respect for
 their people and science.  We are excited about their diabetes vaccine and
 look forward to using our combined technologies and expertise to help bring
 the product to market as quickly as possible.  He added, "Our relationship
 with Diamyd is characteristic of our future strategic direction, pursuant to
 which we intend to get more involved in customers' products that we believe
 are likely to be successful."
     Protein Sciences (PSC) is a biotechnology company based in Meriden,
 Connecticut, USA.  Its business is utilizing recombinant DNA technology to
 develop and manufacture modern protein-based vaccines, diagnostics and
 therapeutics.  A recently completed Phase II/III field trial of FluBlOk
 achieved 100% protection against both circulating and drifted strains of
 influenza and a more than 54% reduction in influenza-like illness (as defined
 by the U.S. CDC) compared to placebo.  As a result, the FDA has advised that
 FluBlOk is eligible for "accelerated approval" status, which allows a company
 to secure market approval prior to performing pivotal clinical end point
 studies.  FDA previously advised PSC that its patented expresSF+(R) insect
 cell line is acceptable for vaccine manufacturing.  FluBlOk also has
 demonstrated significant potential in human clinical trials as a vaccine
 against avian influenza and the ability to protect 100% of vaccinated chickens
 in a challenge study involving a lethal avian influenza virus.  PSC has a
 broad portfolio of patented products in development including a second
 patented influenza vaccine, recombinant neuraminidase, that has completed
 Phase II(b) human clinical trials, a SARS vaccine that is scheduled to enter
 the clinic in 2006, a novel adjuvant and several vaccines and therapeutics
 being developed with customers.   PSC distributes its products and services in
 Japan through Nosan Corporation.

SOURCE Protein Sciences Corporation