Inovio is the most exciting, most innovative company in both immune therapeutics and vaccine space. Just since the last four years, Inovio has published more than 70 peer-reviewed journals that's more productivity. The company has zero debt and a very clean balance sheet and Roche’s upfront payment of $10 million allows Inovio to have full cash run rate through the third quarter, end of third quarter of 2015, this is most cash that this company has ever had.
‘We have the best innovative, most productive platform out there and our partnership with Roche has started that validation but our goal is to bring additional partnerships, additional non-dilutive partner in funding. We have received over $50 million in non-dilutive grants and contracts in the last four years, even prior to the Roche deal of this year. And along the way we may partner out each of these products during our developmental cycle’ said Dr. Joseph Kim, President and CEO.
Inovio has taken aggressive approach to start planning for the Phase III studies already. And the company is working to start other cancer targeted studies in cervical cancer as well as head and neck cancer by early 2014. Inovio will also go for the orphan drug designation which brings additional benefits to the product program. So Inovio is taking on approach as a business strategy, a strategic approach to develop and really put together a powerful vaccine and immune therapeutics development program.
Inovio is certainly looking to do some additional partnerships. Roche was not the only one interested in 5150 or 1800 programs and certainly there are additional advancing discussions for other partnership interest for other lead programs in the company’s pipeline.
Inovio certainly has many of that including in the field of cancer for 5150. The company is racing ahead to start trial for their prostate cancer product with Roche and hopes to start Phase I studies study by early part of 2014.
VGX-3100 is Inovio’s key, most advanced program Phase II efficacy data by midyear. INO-1400 is a truly value driving product as we see for Inovio. It's a therapeutic vaccine targeting the hTERT and hTERT accounts for 85% of all cancers. So, if Inovio can develop this successfully, this product 1400 has the potential to become a universal cancer therapy. The company will start with their initial test in breast and lung cancers and then expand to other cancer indications.
Inovio has been able to generate best-in-class T-cell and antibody responses in these patients and they keep pushing the envelope of the technical and scientific development of their technology and efficacy results which is around the corner and mid year 2014 is going to add additional validating value for all of their programs. And Inovio’s win-win partnership with Roche is just the beginning. We expect additional corporate partnerships for their other programs with the additional Big Pharma.
It's a fantastic deal; it's a win-win deal for both Inovio and Roche. For Inovio it brings a validating partner to the table and Inovio is licensing out two of their preclinical candidates, very high value targets for prostate cancer and hepatitis B therapy.
For Roche they get to enjoy a foothold into one of the most exciting immunotherapy and vaccine research and development areas. It was a $10 million upfront deal, fully milestone, there will be over $412 million in milestones and when the products are on the market, up to double-digit percentage royalties. The milestones begin with Phase I, Phase II and so on these are pretty standard royalty and milestone terms.