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05/28/2007

Inovio Biomedical Closes $16.2 Million Equity Financing

 

Inovio Biomedical Corporation , focused on the development of DNA-based vaccines for cancers and infectious diseases and a novel alternative to surgery to treat localized cancers, announced recently the closing of the sale, directly to institutional and accredited investors based in Singapore and North America, of 4,595,094 shares of the common stock of Inovio Biomedical at $3.52 per share, resulting in cash proceeds to Inovio Biomedical of approximately $16.17 million before offering expenses. The price per share of the Inovio Biomedical common stock issued upon completion of this direct financing represents an approximate 7% discount to the closing price of Inovio Biomedical's common stock on May 14, 2007, the date of execution of the definitive sale agreements.

“While we continue to execute the commercialization strategy for our solid tumor therapy using Bleomycin, this financing gives Inovio a strong balance sheet that will allow us to further leverage the recent successes in our DNA delivery programs,” noted Dr. Avtar Dhillon, CEO.

The shares were offered and sold pursuant to a prospectus supplement to Inovio Biomedical’s registration statement on Form S-3 (File No. 333-134084), including a base prospectus dated May 25, 2006, registering up to $75,000,000 of Inovio Biomedical equity securities and the offering thereof from time to time in accordance with Rule 415 under the Securities Act, which incorporates by reference documents which registrant has filed or will file in accordance with the Securities Exchange Act of 1934, as amended, and the rules and regulations there under.

Inovio Biomedical is focused on developing its DNA delivery technology for gene-based therapies and commercializing its Selective Electrochemical Tumor Ablation (SECTA) therapy. Inovio is a leader in developing human applications of electroporation, which uses brief, controlled electrical pulses to increase cellular uptake of a useful biopharmaceutical and, in the case of DNA-based treatments, levels of gene expression. Initial human validation of its DNA delivery technology has shown safety, tolerability, and the ability to significantly enhance immune responses induced by DNA-based immunotherapies. Partners in this program include Merck and Wyeth. The SECTA therapy for locally treating solid tumors is designed to selectively kill cancerous cells and minimize cosmetic or functional detriments often caused by surgical removal of predominantly healthy tissue typically treated around a tumor. SECTA is advancing through pre-marketing studies for head & neck and skin cancers in Europe and a U.S. Phase III pivotal study for head and neck cancer. Enrollment of a Phase I/II trial for breast cancer is complete. An extensive patent portfolio covering in vivo electroporation protects Inovio’s technology.

For more information, please visit www.inovio.com