Novelos Therapeutics, Inc. Closes Last Tranche in $9 Million Private Placement
NEWTON, Mass.--(BUSINESS WIRE)--Novelos Therapeutics, Inc. (OTCBB: NVLT - News), a biopharmaceutical company focused on the development of therapeutics to treat cancer and hepatitis, today announced that Novelos issued and sold to Purdue Pharma L.P., an existing investor, 8,333,334 shares of Novelos’ common stock and warrants, expiring on December 31, 2015, to purchase 2,916,668 shares of common stock at an exercise price of $0.66 per share, for gross proceeds of $5.5 million. The sale represented the subsequent and final closing under a securities purchase agreement dated August 25, 2009 between the parties. At that time, Novelos issued and sold to Purdue 5,303,030 shares of Novelos’ common stock and warrants to purchase 1,856,062 shares of its common stock for gross proceeds of $3.5 million. The final closing followed shareholder approval of an amendment to Novelos’ certificate of incorporation that increased the number of authorized shares of common stock to 225,000,000 from 150,000,000.
“I am very pleased with Purdue’s continued support, providing Novelos funds for a robust development program into 3Q 2010,” said Harry Palmin, President and CEO of Novelos. “We continue to expect our pivotal 900-patient Phase 3 lung cancer trial to conclude in early 2010. The trial was fully enrolled in March 2008, with the primary endpoint of increased median overall survival to be evaluated following the occurrence of 725 deaths.”
The common stock and warrants were issued in a private placement transaction under Regulation D of the Securities of Act of 1933 and have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the “SEC”) or an applicable exemption from the registration requirements. Novelos has agreed to file a registration statement with the SEC covering resales of the common stock and the common stock issuable upon exercise of the warrants.
About Purdue Pharma L.P.
Purdue Pharma L.P. and its associated U.S. companies are privately-held pharmaceutical companies known for pioneering research on persistent pain. Headquartered in Stamford, CT, Purdue is engaged in the research, development, production, and distribution of both prescription and over-the-counter medicines and hospital products. Additional information about Purdue can be found at www.purduepharma.com.
About Novelos Therapeutics, Inc.
Novelos Therapeutics, Inc. is a biopharmaceutical company commercializing oxidized glutathione-based compounds for the treatment of cancer and hepatitis. NOV-002, the lead compound currently in Phase 3 development for lung cancer under SPA and Fast Track, acts together with chemotherapy as a chemopotentiator and a chemoprotectant. NOV-002 is also in Phase 2 development for early-stage breast cancer and chemotherapy-resistant ovarian cancer. Novelos has a partnership with Mundipharma, an independent associated company of Purdue, to develop and commercialize NOV-002 in Europe and Asia (excluding China). Novelos’ second compound, NOV-205, acts as a hepatoprotective agent with immunomodulating and anti-inflammatory properties. NOV-205 is in Phase 1b development for chronic hepatitis C non-responders. Both compounds have been partnered with Lee’s Pharm in China. For additional information about Novelos please visit www.novelos.com.
This news release contains forward-looking statements. Such statements are valid only as of today, and we disclaim any obligation to update this information. These statements are subject to known and unknown risks and uncertainties that may cause actual future experience and results to differ materially from the statements made. These statements are based on our current beliefs and expectations as to such future outcomes. Drug discovery and development involve a high degree of risk. Factors that might cause such a material difference include, among others, uncertainties related to the ability to attract and retain partners for our technologies, the identification of lead compounds, the successful preclinical development thereof, the completion of clinical trials, the FDA review process and other government regulation, our pharmaceutical collaborators’ ability to successfully develop and commercialize drug candidates, competition from other pharmaceutical companies, product pricing and third-party reimbursement.
Contact:
Novelos Therapeutics, Inc. Company Harry S. Palmin, 617-244-1616 x11 President and CEO hpalmin@novelos.com or Investor Relations Stephen Lichaw, 201-240-3200 slichaw@novelos.com