* DoD to fund development of radiation-poisoning drug
* Contract provides options to buy $30 mln worth of drug
* Shares up as much as 18 pct
Sept 17 Cleveland BioLabs Inc (CBLI.O) said it
received a $45 million contract from the U.S. Department of
Defense to develop and stockpile its experimental drug to treat
radiation poisoning, sending its shares up 18 percent to a new
The company, which reported revenue of $14.3 million in
2009, said DoD will provide $14.8 million for the development
of the drug, CBLB502.
Upon U.S. regulatory approval for the drug, the contract
provides options for the department to buy $30 million worth of
CBLB502, aimed at reducing the risk of death following
total body irradiation during or after a radiation disaster,
was granted fast-track designation by the U.S. Food and Drug
Administration in July.
Fast-track status is designed to expedite the review of
drugs that treat serious diseases and fill unmet medical needs.
Cleveland BioLabs also has one cancer drug in a mid-stage
trial and five others in pre-clinical stage.
The company's shares, which have gained 53 percent since
the news of the drug getting a fast-track status, were up 10
percent at $5.38 in morning trade Friday on Nasdaq. They
touched a high of $5.75 earlier in the session.
(Reporting by Esha Dey in Bangalore; Editing by Vinu