YONKERS, NY--(Marketwired - September 04, 2013) - ContraFect Corporation
, developing biotherapeutics for life-threatening infectious diseases, is pleased to announce that it has successfully closed a private placement of convertible notes. The financing, which initially targeted $5 million, was over-subscribed and increased to $11.8 million. The funds will be used for development of ContraFect's most advanced product, CF-301, a novel bacteriophage lysin for staphylococcus aureus bacteremia, a blood-born infection causing 30,000 deaths per year in the US alone.
Dr. Robert Nowinski, Ph.D., ContraFect's founder and chief executive officer, said, "This is a critical financing to support the advancement of CF-301 -- our paradigm shifting, first-in-class drug for drug resistant bacterial infections."
"This financing strengthens our balance sheet as we execute on our business plan," stated Julia P. Gregory, executive vice president and chief financial officer.
The Maxim Group, LLC, acted as the private placement agent.
ContraFect's lead compound, CF-301, is a bacteriophage lysin with specific activity against the gram-positive bacteria S. aureus, including drug-sensitive and drug-resistant strains (e.g., MRSA). CF-301 is a first-in-class molecule, and works more rapidly and potently than current antibiotics, displays synergy when used in combination with current antibiotics, eradicates biofilms, and is not prone to bacterial resistance.
ContraFect Corporation is a clinical-stage biotechnology company focused on development and commercialization of products for life threatening infectious diseases, particularly those used in hospital-based markets. ContraFect's initial products include new agents to treat diseases such as MRSA (drug-resistant staphylococcus bacteria) and influenza. Its scientific strategy focuses on the use of combination therapies, where it believes that the company's products will overcome high rates of mutation and resistance observed in microbes.
Safe Harbor Statement
This release contains forward-looking statements, and any statements other than statements of historical facts could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events that involve risks and uncertainties These statements are based on management's current expectations and actual results and future events may differ materially due to risks and uncertainties, including those associated with our ability to obtain additional funds, obtain and maintain all necessary patents and licenses, meet applicable regulatory standards and receive required regulatory approvals, manufacture or commercialize our products at reasonable costs and compete with other products and market our products in a profitable manner. We assume no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.