Cleveland BioLabs (CBLI) Poised to Capitalize Massively on Multiple Government Contracts for Radiation Countermeasures

President and CEO of CBLI, Michael Fonstein, detailed excitement over CBLB502, the Company’s radiation countermeasure being favorably positioned to receive the final contract award by the DOD (pursuant to a Q1 FY10 Request For Proposal response).

In an exclusive interview with BioMedReports, Fonstein revealed that the CBLB502 defense program is based on CBLI’s unique pharmacological approach of achieving radioprotectant (preventative) and radiation damage mitigation parameters via Protectans, molecules which shield the cell against radiation or other cellular stress factors.

The contract is likely to be comprised of two components:

• Budget for radiation countermeasures R&D via FDA licensure
• Conditional commitments for some 37.5k doses upon licensure

While the total dollar value probably won’t be over a few tens of millions, according to Fonstein, it would really solidify the Company and its products due to the global recognition of the DOD as a leader in radiation research.

Landing the contract would put CBLI in prime position to develop a huge program for purchases from an even bigger client, the Department of Health and Human Services’ Biomedical Advanced Research and Development Authority, which is tasked with fulfilling countermeasure requirements for the Strategic National Stockpile.

Fonstein projected a contract value somewhere in the neighborhood of $100-300M; mind you, this is before considering the broad potential applications in foreign markets like Israel and others, where the seemingly imminent implementation of at least tactical nuclear capability is a distinct possibility.