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Vical Receives Payment from AnGes MG for Allovectin-7(R) Phase 3 Pivotal Trial
Date:1/17/2008

SAN DIEGO, Jan. 17 /PRNewswire-FirstCall/ -- Vical Incorporated (Nasdaq: VICL) today announced the receipt of a $2.1 million cash payment from AnGes MG, Inc. for costs associated with the ongoing Allovectin-7(R) Immunotherapeutic for Metastatic Melanoma (AIMM) Phase 3 trial.

AnGes is funding the Phase 3 pivotal trial of Allovectin-7(R) under a previously announced collaborative agreement through a scheduled series of cash payments and equity investments totaling $22.6 million, for which AnGes received exclusive marketing rights in Japan and other key Asian countries, and also will receive certain royalties for sales in the United States and European countries. Vical is conducting the trial in accordance with a Special Protocol Assessment (SPA) completed with the U.S. Food and Drug Administration (FDA).

The payment was triggered by utilization of previous cash balances, reflecting progress in the trial. The cash payment was received as anticipated in late December, and will be included in Vical's year-end 2007 cash balances, consistent with the company's guidance of a projected 2007 net cash burn of $27 million to $32 million. Revenue related to the cash payment will be deferred and matched to trial expenses as they are incurred.

About Vical

Vical researches and develops biopharmaceutical products based on its patented DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases. Potential applications of the company's DNA delivery technology include DNA vaccines for infectious diseases or cancer, in which the expressed protein is an immunogen; cancer immunotherapeutics, in which the expressed protein is an immune system stimulant; and cardiovascular therapies, in which the
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SOURCE Vical Incorporated
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