SOUTH SAN FRANCISCO, Calif., April 30, 2015 (GLOBE NEWSWIRE) -- Achaogen, Inc. (Nasdaq:AKAO), a clinical-stage biopharmaceutical company developing novel antibacterials to treat multi-drug resistant (MDR) gram-negative infections, today announced it has reached a settlement of its claim with the Defense Threat Reduction Agency (DTRA), a division of the US Department of Defense. The $7.1 million settlement payable to Achaogen is related to the Company's 2007 contract with DTRA to develop novel antibacterials for the treatment of biodefense pathogens.
"We are extremely grateful for the partnership experience and significant support from DTRA. The support of government agencies such as DTRA continues to play an integral role in advancing our programs and we are appreciative of the government's on-going funding for next generation gram-negative antibacterial medicines to treat serious infections," commented Dr. Kenneth Hillan, Chief Executive Officer of Achaogen.
In November 2012, DTRA terminated the contract for convenience and the settlement follows an audit by the Defense Contract Audit Agency. The net settlement of $7.1 million, together with sums previously received, constitutes complete and final settlement of the contract.
Achaogen is a clinical-stage biopharmaceutical company passionately committed to the discovery, development, and commercialization of novel antibacterials to treat MDR gram-negative infections. Achaogen is developing plazomicin, Achaogen's lead product candidate, for the treatment of serious lung, bloodstream, and urinary tract infections due to Enterobacteriaceae, including, but not limited to, carbapenem-resistant Enterobacteriaceae (CRE). Achaogen's plazomicin program is funded in part with a contract from the Biomedical Advanced Research and Development Authority. Plazomicin is the first clinical candidate from Achaogen's gram-negative antibiotic discovery engine, and Achaogen has other programs in early and late preclinical stages focused on other MDR gram-negative infections. For more information, please visit www.achaogen.com.
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