Arno Therapeutics Raises $15 Million in Private Placement To Advance Clinical Development of Oncology Compounds
"We are extremely pleased to have the continued support of the investment community as we work to advance our promising technologies for the treatment of cancer," said Arie Belldegrun, M.D., FCAS, Chairman of Arno. "We believe these funds will provide us with sufficient capital to complete our on-going clinical trials and generate meaningful clinical data."
The net proceeds of the financing will be used to advance Arno’s three clinical stage compounds:
•AR-12, is a potentially first-in-class, orally available PDK1 inhibitor that blocks the PI3K/Akt pathway and may also cause cell death through the induction of endoplasmic reticulum stress. AR-12 is currently being studied in a multi-centered Phase I clinical trial in adult patients with advanced or recurrent solid tumors or lymphoma.
•AR-67, is a novel, third-generation camptothecin analogue that inhibits Topoisomerase I activity. AR-67 has demonstrated activity and an excellent safety profile in clinical studies as well as improved pharmacokinetic properties when compared to approved second-generation products Hycamtin® (topotecan) and Camptosar® (irinotecan). AR-67 is currently enrolling patients in Phase II clinical studies in glioblastoma multiforme (GBM) and myelodysplastic syndrome (MDS).
•AR-42 is an orally available, broad spectrum inhibitor of both histone and non-histone deacetylation proteins (a “pan-DAC”). AR-42 is currently being studied in an investigator sponsored Phase I/IIa clinical study in adult patients with relapsed or refractory multiple myeloma (MM), chronic lymphocytic leukemia (CLL) or lymphoma. In preclinical studies, AR-42 has compared favorably to vorinostat (“SAHA,” or Zolinza®) and other deacetylase inhibitors. These data demonstrate the potent and differentiating activity of AR-42. Additionally, pre-clinical findings presented at the 2009 American Society of Hematology (ASH) Annual Meeting and Exposition showed that AR-42 potently and selectively inhibits leukemic stem cells in acute myeloid leukemia (AML).
Under the terms of a Securities Purchase and Registration Rights Agreement, Arno sold units consisting of an aggregate of approximately 15.1 million shares of Series A Convertible Preferred Stock (the “Preferred Stock”) and warrants to purchase up approximately 7.6 million additional shares of the Preferred Stock. Each unit was sold at a price equal to $1.00 per unit. Warrants to purchase approximately 1.2M shares of Preferred Stock are exercisable for two and one half years at a price per share equal to $1.00, and warrants to purchase approximately 6.4M shares of Preferred Stock are exercisable for five years at a price per share equal to $1.15. Arno has agreed to file a registration statement covering the resale of the shares of common stock issuable upon conversion of the Preferred Stock issued in the private placement, including the shares issuable upon exercise of the warrants. Upon the effectiveness of the registration statement all shares of Preferred Stock shall automatically convert into shares of common stock of the Company, and the warrants to purchase Preferred Stock shall thereafter convert to warrants to purchase shares of common stock.
The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration under such act and applicable state securities laws or an applicable exemption from those registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
Forward Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding the timing, progress and anticipated results of the clinical development, regulatory processes, potential clinical trial initiations, potential IND and NDA filings, as well as our strategy, future operations, outlook, milestones, the success of Arno’s product development, future financial position, future financial results, plans and objectives of management, are forward-looking statements. We may not actually achieve these plans, intentions or expectations and Arno cautions investors not to place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. Various important factors could cause actual results or events to differ materially from the forward-looking statements that we make. Such factors include, among others, risks that the results of clinical trials will not support our claims or beliefs concerning the effectiveness of our product candidates, our ability to finance the development of our product candidates, regulatory risks, and our reliance on third party researchers and other collaborators. Arno is providing this information as of the date of this presentation and does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise.
For more information on Arno please visit www.arnothera.com
Contacts Arno Therapeutics, Inc. David M. Tanen President 862-703-7170 dt@arnothera.com