VANCOUVER, June 14, 2012 /PRNewswire/ - Allon Therapeutics Inc. (TSX: NPC) said today that its shareholders have approved the terms of the $10 million brokered private placement equity offering
previously announced by the Company May 2. The approval triggers the
conversion of the subscription receipts sold as part of the financing
making the full $10 million raised available to the Company for
development of its lead product davunetide.
Davunetide is proceeding in a fully enrolled pivotal clinical trial in
an orphan indication, progressive supranuclear palsy (PSP), under a Special Protocol Assessment (SPA) with the U.S. Food and
Drug Administration (FDA). The trial is expected to complete patient
dosing and release top-line data by late 2012. This pivotal trial is
based upon statistically significant human efficacy demonstrated in
patients with amnestic mild cognitive impairment, cognitive impairment
associated with schizophrenia, and positive biomarker data.
Gordon McCauley, President and CEO of Allon Therapeutics, said the
shareholder vote was undertaken in conjunction with the Company's
Annual General Meeting (AGM) on Wednesday, June 13, 2012. "The
financing ensures we have the resources needed to complete the trial
and data analysis and to advance davunetide towards commercialization," McCauley said. "PSP is a devastating
neurodegenerative disease with no approved treatments and a market
potential in excess of $700 million in the U.S. and Europe."
The Company now looks forward to completing the pivotal study in PSP.
"We are grateful for our shareholders' continued support as we move
toward pivotal data at the end of this year. Our shareholders stand
with thousands of patients, caregivers, families, and health
professionals in search of a treatment for this debilitating and fatal
disease", McCauley said.
Shareholders also re-elected the Company's Board of Directors: Dr. James
J. Miller, Gordon C. McCauley, Dr. Anthony G. Phillips, Professor
Illana Gozes, Frank Holler, Dr. Martin Barkin and Michael Aldridge.
Allon Therapeutics Inc. is a clinical-stage biotechnology company
focused on bringing to market innovative central nervous system
therapies. Allon's lead drug davunetide is proceeding in a pivotal clinical trial in an orphan indication, progressive supranuclear palsy (PSP), under a Special Protocol Assessment (SPA) with the U.S. Food and
Drug Administration (FDA). The trial is fully enrolled and is expected
to complete patient dosing and release top-line data by late 2012. This
pivotal trial is based upon statistically significant human efficacy
demonstrated in patients with amnestic mild cognitive impairment,
cognitive impairment associated with schizophrenia, and in positive
biomarker data. The Company is listed on the Toronto Stock Exchange
under the trading symbol "NPC".
Forward Looking Statements
Statements contained herein, other than those which are strictly
statements of historical fact may include forward-looking information.
Such statements will typically contain words such as "believes", "may",
"plans", "will", "estimate", "continue", "anticipates", "intends",
"expects", and similar expressions. While forward-looking statements
represent management's outlook based on assumptions that management
believes are reasonable, forward-looking statements by their nature are
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, events or developments to be
materially different from any future results, events or developments
expressed or implied by them. Such factors include, among others, the
inherent uncertainty involved in scientific research and drug
development, Allon's early stage of development, lack of product
revenues, its additional capital requirements, the risks associated
with successful completion of clinical trials and the long lead-times
and high costs associated with obtaining regulatory approval to market
any product which Allon may eventually develop. Other risk factors
include the limited protections afforded by intellectual property
rights, rapid technology and product obsolescence in a highly
competitive environment and Allon's dependence on collaborative
partners and contract research organizations. These factors can be
reviewed in Allon's public filings at www.sedar.com and should be considered carefully. Readers are cautioned not to place
undue reliance on such forward-looking statements. Similarly, nothing
in this press release is meant to promote a pharmaceutical product or
make a regulated claim of efficacy.
SOURCE Allon Therapeutics Inc.