Virpax Pharmaceuticals Announces Proposed Settlement of Litigation with Sorrento Therapeutics, Inc. and Scilex Pharmaceuticals, Inc.

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.”

About Virpax Pharmaceuticals

Virpax is developing branded, non-addictive pain management products candidates using its proprietary technologies to optimize and target drug delivery. Virpax is initially seeking FDA approval for two prescription drug candidates that employ two different patented drug delivery platforms. Probudur is a single injection liposomal bupivacaine formulation being developed to manage post-operative pain and Envelta is an intranasal molecular envelope enkephalin formulation being developed to manage acute and chronic pain, including pain associated with cancer. Virpax is also using its intranasal Molecular Envelope Technology (MET) to develop one other prescription product candidate, NobrXiol, which is being developed for the nasal delivery of a pharmaceutical-grade cannabidiol (CBD) for the management of rare pediatric epilepsy. Virpax has competitive cooperative research and development agreements (CRADAs) for two of its prescription drug candidates, one with the National Institutes of Health (NIH) and one with the Department of Defense (DOD). Virpax is also seeking approval of two nonprescription product candidates: AnQlar, which is being developed to inhibit viral replication caused by influenza or SARS-CoV-2, and Epoladerm, which is a topical diclofenac spray film formulation being developed to manage pain associated with osteoarthritis. For more information, please visit virpaxpharma.com and follow us on Twitter, LinkedIn and YouTube.