Hemispherx Enters into Sale/Leaseback Agreement for NJ Development and Production Facility
January 17 2018 - 8:30AM
Hemispherx Biopharma, Inc. (NYSE American:HEB),
focused on pharmaceutical research, today said it has entered
into a sale and leaseback agreement for the property it owns at 783
Jersey Lane, New Brunswick, NJ., which houses the company’s
development and production facilities.
Under the terms of the agreement, Hemispherx is selling the real
estate for $4.0 million, and simultaneously entering into a 10-year
lease with options to extend the lease for another 10-years. The
company will retain the right to repurchase the property at any
time during the initial lease. The facility’s lease payments under
the agreement are offset by about 50% by the contemporaneous
termination of the very expensive lease on its Philadelphia
offices. The combination of these transactions raises cash for
operations with only a modest increase in the burn rate.
“This is a timely transaction for Hemispherx on favorable terms.
It allows us to increase our production capabilities for Ampligen®
to meet existing demands and projected higher requirements during
the balance of this year and beyond,” said Thomas K. Equels, Chief
Executive Officer of the Company.
Hemispherx is in the final stages of producing commercial lots
which are needed to launch Ampligen® in Argentina, where it is the
first and only drug ever approved anywhere in the world as a
therapy for Myalgic Encephalomyelitis, commonly known as Chronic
Fatigue Syndrome or ME/CFS. Increased production is important to
allow clinical activities in both ME/CFS and oncology to move
forward in the U.S. Furthermore, Ampligen production is key to
Early Access Programs in Europe and planned programs in Canada.
“Hemispherx commitment to success is unwavering and converting
wholly owned real estate into cash for operations and drug
production without a dramatic increase in the burn rate is just a
part of our overall financial plan,” states Equels, “We must
remember that Ampligen stands as a potentially powerful mediator
for dire unmet medical needs. We cannot serve those in need if we
do not take the important financial steps necessary to manufacture
Ampligen in sufficient quantities to allow it to gain regulatory
approvals in major markets.”
About Hemispherx Biopharma
Hemispherx Biopharma, Inc. is an advanced specialty pharmaceutical
company engaged in the clinical development of new drug entities
for treatment of seriously debilitating disorders. Hemispherx’s
flagship products include Alferon N Injection® and the experimental
therapeutic rintatolimod (tradenames Ampligen® or Rintamod®).
Rintatolimod is an experimental RNA nucleic acid being developed
for globally important debilitating diseases and disorders of the
immune system, including Myalgic Encephalomyelitis/Chronic Fatigue
Syndrome (ME/CFS). Hemispherx’s platform technology includes
components for potential treatment of various severely debilitating
and life threatening diseases. Because rintatolimod is experimental
in nature, it is not designated safe and effective by the FDA for
general use and is legally available only through clinical
trials.
Cautionary StatementSome of the statements
included in this press release may be forward-looking statements
that involve a number of risks and uncertainties. For those
statements, we claim the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. Any forward-looking statements set
forth in this press release speak only as of the date of this press
release. We do not undertake to update any of these forward-looking
statements to reflect events or circumstances that occur after the
date hereof. This press release and prior releases are available at
www.hemispherx.net. The information found on our website is not
incorporated by reference into this press release and is included
for reference purposes only.
ContactHemispherx Biopharma Phone Number:
800-778-4042 Email: IR@hemispherx.net
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