Lee's Pharmaceutical granted exclusive license to Jennerex' lead product for HCC

Jennerex, Inc., a clinical-stage biotherapeutics company developing a proprietary breakthrough class of targeted oncolytic virus therapeutics, today announced in conjunction with Lee's Pharmaceutical Holdings (HK Stock code: 8221), the execution of a collaboration and license agreement for Jennerex's lead product candidate, JX-594, in certain Asian territories. Lee's is a fully integrated pharmaceutical group with operations in People's Republic of China (PRC), Hong Kong and Macau.

The agreement grants Lee's an exclusive license to Jennerex's lead product, JX-594 for the treatment of hepatocellular carcinoma (HCC) and other cancers in PRC, Hong Kong and Macau. In return, Jennerex will receive an up-front payment and milestone payments as well as royalties on commercial sales in the licensed territories. In addition, Lee's will participate in the conduct of global clinical trials with Jennerex, including the pivotal Phase 3 trial, by funding and managing all clinical trial sites in the PRC and Hong Kong. JX-594 is currently in Phase 2 clinical development for primary liver cancer and Phase 1/2 for colorectal cancer, and is expected to enter a Phase 3 pivotal trial in the second half of 2010.

"We are delighted to enter into this partnership with Lee's for JX-594 clinical development and commercialization. This represents an expansion of our regional partnering strategy," said David H. Kirn, M.D., President and Chief Executive Officer of Jennerex. "Partnering JX-594 in Asia is particularly advantageous to both Jennerex and our partners due to the product's lead indication for primary liver cancer, which has a very high incidence and high unmet medical need in countries throughout Asia. Our successful long-term partnership with Green Cross in South Korea is an example of this. Lee's is a highly capable development and commercial organization in China, and we look forward to working with Lee's toward the common goal of JX-594 approval and commercialization for the benefit of cancer patients."

"We are excited to announce this partnership with Jennerex for JX-594. The clinical data observed thus far are very strong, and we believe that there will be great interest in this product candidate in China," stated Dr. Benjamin Li, Chief Executive Officer of Lee's. "China reports more than half of the world's liver cancer cases. We are pleased to bring this important new product candidate to China for the many patients in need of an effective treatment for this disease."