SAN DIEGO--(BUSINESS WIRE)--AmpliPhi Biosciences Corporation (NYSEMKT:APHB), a biotechnology company focused on the development and commercialization of novel bacteriophage-based antibacterial therapeutics, today announced the settlement of its pending lawsuit with NRM VII Holdings I, LLC (“NRM”). The lawsuit relates to a complaint filed by NRM against AmpliPhi and the members of its board of directors following the automatic conversion of NRM’s Series B convertible preferred stock into common stock of AmpliPhi in April 2016. The complaint sought unspecified money damages and other relief.
Under the terms of a settlement agreement, NRM has agreed to dismiss with prejudice the lawsuit and AmpliPhi’s insurance carrier will make a cash payment of $2.0 million to NRM. A portion of the settlement payment (approximately $914,000) is attributable to accrued dividends that became payable to NRM upon the automatic conversion of its Series B convertible preferred stock into common stock, which amount is recorded in AmpliPhi’s balance sheet at September 30, 2016. AmpliPhi has agreed to pay its insurance carrier for the accrued dividends amount on an installment basis. AmpliPhi and NRM have agreed to release all claims against each other and all related parties. NRM and its affiliates continue to be significant shareholders in AmpliPhi.
“AmpliPhi is pleased that this matter has been resolved,” said M. Scott Salka, CEO of AmpliPhi Biosciences. “We believe that this settlement is in the best interests of our company and our shareholders. We will continue to focus on advancing our portfolio of innovative phage-based therapies and creating value from our proprietary technologies.”
About AmpliPhi Biosciences
AmpliPhi Biosciences Corporation (NYSEMKT: APHB) is a biotechnology company focused on the development and commercialization of novel bacteriophage-based antibacterial therapeutics. AmpliPhi's product development programs target infections that are often resistant to existing antibiotic treatments. AmpliPhi has reported topline results from two Phase 1 clinical trials of AB-SA01, one for the treatment of Staphylococcus aureus (S. aureus) in chronic rhinosinusitis patients and one to evaluate the safety of AB-SA01 when administered topically to the intact skin of healthy adults. AmpliPhi expects to report final data from each trial by the end of 2016. AmpliPhi is also developing bacteriophage therapeutics targeting Pseudomonas aeruginosa (P. aeruginosa) and Clostridium difficile (C. difficile) in collaboration with a number of leading organizations focused on the advancement of bacteriophage-based therapies.
Bacteriophage are naturally occurring viruses that are highly specific for the bacterial hosts they infect. They can rapidly kill their host, amplifying themselves in the process. Bacteriophage are unaffected by antibiotic resistance and are able to disrupt bacterial biofilms. Such biofilms are a major line of defense for bacteria, contributing to antibiotic resistance. Bacteriophage are able to penetrate biofilms and replicate locally to high levels, to produce strong local therapeutic effects without destroying bacteria important to normal human health.
Forward Looking Statements
Statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements about future payments to be made and actions to be taken in connection with the settlement agreement, the expected timing of reporting complete trial results from AmpliPhi’s two AB-SA01 trials, the expected initiation of a Phase 2 clinical trial in 2017, the potential use of bacteriophages to treat bacterial infections, including infections that do not respond to antibiotics, and the ability to resensitize antibiotic-resistant bacteria to antibiotics, the potential benefits of phage therapy. Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “will,” “may,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements necessarily contain these identifying words. These forward-looking statements are based upon AmpliPhi’s current expectations and involve a number of risks and uncertainties, including the risks and uncertainties described in AmpliPhi’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, as filed with the Securities and Exchange Commission (SEC) and subsequent filings with the SEC. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and AmpliPhi undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
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