ASX Announcement (295)3 June 2008Virax Co-X-GeneTM Technology...

ASX Announcement (295)
3 June 2008
Virax Co-X-GeneTM Technology Licence with Transgene
Successful Phase IIb trial Result for TG4010 in Non-Small Cell Lung Cancer

Virax Holdings Limited (ASX:VHL) advises that Transgene SA of Strasbourg, France, reported successful Phase IIb data for its therapeutic cancer vaccine TG4010 when used as an adjunct to first line chemotherapy in patients with advanced non-small cell lung cancer.

TG4010 uses Virax’s Co-X-GeneTM technology under the Licence Agreement between the Company and Transgene.

Transgene stated that the trial met its primary endpoint for progression free survival at six months and that the response rate was substantially higher for the combination of TG4010 with chemotherapy compared to chemotherapy alone. Chief Executive Officer of Transgene, Phillipe Archinard, said “These results clearly warrant pursuing development into a Phase III program and we will be seeking to establish a partnership in order to complete the last stages of clinical development and bring TG4010 to the market”.

Virax’s Chief Executive Officer, Larry Ward stated “these positive trial results are further validation of both the Co-X-GeneTM technology and the significant commercial value of the Transgene Licence. It is very exciting that both TG4010 and TG4001, products covered in the Agreement with Transgene, should now soon enter Phase III testing.” The Virax-Transgene Licence Agreement allows Virax to share in fees and milestone payments in the event that Transgene sub-licences out either of the products and reaches development milestones. In addition Virax will receive a royalty on net sales for the licensed products in North America.

Bryan Garnier and Co Ltd (Manager of public offering by Transgene) estimated peak annual sales of €750 million for TG4010 and €250 million for TG4001 in its “Emerging Growth Research Report” dated 6 June 2005.

Under the Transgene Licence, the Company has already received milestone payments for TG4001 and licence fees totalling $2.2m.