Viral Genetics Creates Subsidiary to Develop Cancer Therapy

Viral Genetics Creates Subsidiary to Develop Cancer Therapy 

SAN MARINO, Calif., Aug. 7 -- Biotechnology company Viral Genetics (Pink Sheets: VRAL) has formed a wholly owned subsidiary called MetaCytoLytics, Inc. This company was created to advance a technology developed by University of Colorado Professor M. Karen Newell called "metabolic disruption technology" (MDT), which focuses on blocking a tumor cell's ability to generate energy from glucose or from fatty acids. That process has been found in animal studies to not only directly cause cancer cells to die but also to synergize with existing treatments such as chemotherapy and radiation therapy to further limit the growth of tumor cells. Dr. Richard J. Trauger, Ph. D., will be chief executive officer of the new company. He will focus on bringing this concept forward into clinic trials and expanding the indications provided by the technology platform.

"The potential for this technology platform is quite exciting," said Dr. Trauger. "Metabolic disruption is a concept that has tantalized cancer researchers for decades. We believe that we finally have the knowledge and tools to turn this concept into a clinical reality."

Dr Karen Newell and her team at the University of Colorado at Colorado Springs have performed over 400 metabolic disruption technology experiments with a large panel of disrupting compounds for proof of principal--either in vitro or in animal models. Dr. Newell, who has been on the cutting edge of metabolic disruption of tumor cells for many years helped develop the process for Viral Genetics.

"The results are consistently supportive that metabolic disruption, in combination with conventional therapies, is very promising for combating drug resistant tumors," said Dr. Newell.

Prior to joining MetaCytoLytics, Inc., Dr. Trauger was the senior director for infectious disease and cancer at Hollis Eden Pharmaceuticals. He served as product leader for that company's lead cancer compound to treat prostate and breast cancer.

"Metabolic disruption technology holds tremendous hope for patients with drug resistant tumors," said Haig Keledjian, CEO of Viral Genetics. "Dr. Trauger has worked in the biotech industry for 20 years and for the last 15 years has focused exclusively on bringing new cancer therapies to the clinic. We believe that he has the knowledge and experience to take this program forward. Creating a new corporation dedicated to that effort is critical to give this science the attention it deserves. At the same time, it enables Viral Genetics to remain focused on its core mission of pursuing treatments for autoimmune diseases, in addition to our primary focus of HIV and AIDS."

Viral Genetics has an option to acquire exclusive rights to the metabolic disruption technology from the University of Vermont and the University of Colorado, where the technology was invented and developed by Dr. Newell. Viral Genetics is completing negotiations to convert the option into an exclusive worldwide license covering a broad range of uses and specific therapeutic compositions.

Upon completion of certain benchmarks, Dr. Trauger will have the opportunity to acquire a 25% stake in the new company.

Viral Genetics has taken additional steps to strengthen its place in the marketplace by filing an unaudited financial statement at That statement covers the company's financials for the last 18-months through March 31, 2009. Viral Genetics also recently retired a significant portion of its debt, enabling the majority of any new funding to go directly to bringing new drugs to the marketplace.


Headquartered in San Marino, California, Viral Genetics discovers and develops drug therapies to treat infectious, autoimmune, and immunological deficiency disorders using its thymus nuclear protein compound (TNP). The company recently entered into an Exclusive License Agreement with the University of Colorado and V-Clip Pharmaceuticals (a subsidiary of the Company) to license technology developed by M. Karen Newell, Ph. D., that appears to explain TNP and provide a means to optimize therapies based on TNP for future clinical trials. Viral Genetics believes that its investigational HIV/AIDS drug based on TNP, called VGV-1, represents a unique approach to treating HIV due to the apparently novel mechanism, low toxicity profile, simple dosing regimen, and short-course of treatment. Online at


This news release contains forward-looking statements that involve risks and uncertainties associated with financial projections, budgets, milestone timelines, clinical development, regulatory approvals, and other risks described by Viral Genetics, Inc. from time to time in its periodic reports filed with the SEC. VGV-1 is not approved by the US Food and Drug Administration or by any comparable regulatory agencies elsewhere in the world. While Viral Genetics believes that the forward-looking statements and underlying assumptions contained therein are reasonable, any of the assumptions could be inaccurate, including, but not limited to, the ability of Viral Genetics to establish the efficacy of VGV-1 in the treatment of any disease or health condition, the development of studies and strategies leading to commercialization of VGV-1 in the United States, the obtaining of funding required to carry out the development plan, the completion of studies and tests on time or at all, and the successful outcome of such studies or tests. Therefore, there can be no assurance that the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the forward-looking statements should not be regarded as a representation by Viral Genetics or any other person that the objectives and plans of Viral Genetics will be achieved.