BERWYN, Pa.– Virpax® Pharmaceuticals, Inc. (“Virpax” or the “Company”) (NASDAQ: VRPX), a company specializing in developing non-addictive products for pain management, post-traumatic stress disorder, central nervous system (CNS) disorders and anti-viral barrier indications, today announced that it has entered into a term sheet to settle the litigation with the Company and Sorrento Therapeutics, Inc. (Sorrento) and Scilex Pharmaceuticals, Inc. (Scilex and Sorento, collectively, the “Plaintiffs”). The term sheet sets forth the principal terms of a mutual release and settlement agreement to be entered into by the Company and the Plaintiffs. However, if the parties fail to do so by or before March 1, 2024, the term sheet will become binding.
As part of the settlement, the parties have agreed to a cash payment from Virpax to the Plaintiffs of $3.5 million by March 1, 2024, and $2.5 million by July 1, 2024, to settle all claims against Virpax. Additionally, Virpax will pay the plaintiffs royalties of 6% of annual net sales of products developed from drug candidates Epoladerm™, Probudur™ or Envelta™ until the expiration of the last-to-expire valid patent claim and the expiration of any period of regulatory exclusivity. Each party releases all claims against the other party and neither party admits liability for any claim including those asserted in the lawsuit. Plaintiff’s release of Virpax is conditioned upon Virpax making its initial payment.
“I am pleased that we were able to bring this litigation to a satisfactory conclusion,” stated Gerald Bruce, CEO of Virpax Pharmaceuticals. “We are now able to fully focus all of our efforts on the development of our drug product candidates as well as the Investigational New Drug Applications (IND) for our two lead programs.”
