BASKING RIDGE, N.J., July 16 /PRNewswire-FirstCall/ -- VioQuest Pharmaceuticals , a New Jersey-based biopharmaceutical company focused on acquiring, developing and commercializing targeted cancer compounds, announced today that it has completed the sale of its subsidiary, Chiral Quest, Inc., to Chiral Quest Acquisition Corp., a corporation formed by Chiral Quest’s management and others for $1.7 million in cash, plus approximately $1 million of liabilities.
(Logo: http://www.newscom.com/cgi-bin/prnh/20070117/NYW085LOGO )
Separately, VioQuest also raised gross proceeds of $3.7 million through the issuance of 8% senior convertible promissory notes, plus five-year warrants to purchase an aggregate of 2.4 million shares of VioQuest’s common stock. The notes will automatically convert into VioQuest securities upon completion of a defined future financing transaction. The Notes mature in 12 months, but VioQuest has the option to extend the maturity for an additional year at an interest rate of 12%. Certain of VioQuest’s executive officers and directors participated in the note financing.
The offer and sale of the notes and warrants has not been registered under the Securities Act of 1933, and the notes and warrants, including the securities underlying the notes and warrants, 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.
The Company intends to utilize the proceeds from these transactions to support its three drug candidate’s upcoming five Phase II drug development programs; VQD-002, a novel inhibitor of activated Akt, which is found disproportionately in resistant and aggressive solid and hematologic tumors, Lenocta(TM), an inhibitor of specific protein tyrosine phosphatases (PTPases) SHP1 and SHP2, and Xyfid(TM), a topical therapy, which has shown early clinical promise in the treatment and prevention of chemo-induced hand-foot syndrome. VioQuest expects to initiate three Phase II clinical trials for VQD- 002, one Phase II clinical trial for Lenocta(TM), and one Phase II for Xyfid(TM) during the second half of this year.
The Company also expects to file an NDA (New Drug Application) for Lenocta(TM), for the treatment of leishmaniasis later this year.
“With the completion of the Chiral Quest sale and the note offering, we have strengthened our balance sheet, and will be able to initiate all of our Phase II clinical development programs and file our NDA for the treatment of leishmaniasis. Over the past several months, we have been preparing to initiate our Phase II clinical trials in our key programs this quarter. We are excited to initiate multiple clinical trials, as we believe that these trials will further validate the promising clinical results that our product candidates have achieved previously,” said Daniel Greenleaf, VioQuest’s president and CEO.
About VioQuest Pharmaceuticals
VioQuest Pharmaceuticals, Inc. www.vioquestpharm.com focuses on acquiring, developing, and commercializing targeted late preclinical and early clinical stage therapies with unique mechanisms of action for oncology, viral and autoimmune disorders. VioQuest has two targeted therapeutics in Phase I/IIa clinic trials: VQD-002 which inhibits activation of Akt that is seen at abnormally high levels in breast, ovarian, colorectal, pancreatic, and hematologic tumors; and Lenocta(TM), an inhibitor of specific protein tyrosine phosphatases, which has shown compelling preclinical activity in both renal and melanoma cancers. In addition, VioQuest and the U.S. Army are planning to submit an NDA to the FDA in 2007 for Lenocta(TM) for the treatment of leishmaniasis. VioQuest also has recently in-licensed Xyfid(TM), a topical therapy which has shown early clinical promise in the treatment and prevention of chemo-induced hand-foot syndrome.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties that could cause VioQuest’s actual results and experiences to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as anticipates, expects, plans, believes, intends, and similar words or phrases. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties, which could cause actual outcomes and results to differ materially from these statements. Among other things, there can be no assurances that all of the conditions to closing the sale of Chiral Quest will be satisfied in a timely manner or at all, which may prevent VioQuest from completing the transaction. In addition, this press release also includes forward-looking statements regarding the timing, progress and results of the clinical development, regulatory processes, potential clinical trial initiations, potential IND and NDA filings and commercialization efforts of VioQuest’s drug development product candidates. These statements are subject to various risks and uncertainties include the possibility that the results of clinical trials will not support VioQuest’s claims, the possibility that VioQuest’s development efforts relating to its product candidates, including Lenocta(TM) and VQD-002, will not be successful, the inability to obtain regulatory approval of VioQuest’s product candidates, VioQuest’s reliance on third-party researchers to develop its product candidates, its lack of experience in developing and commercializing pharmaceutical products, and the possibility that its licenses to develop and commercialize its product candidates may be terminated. Additional risks are described in VioQuest’s Annual Report on Form 10-KSB for the year ended December 31, 2006. VioQuest assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Contact information: Daniel Greenleaf President and CEO 908-766-4400 ext. 115 dan.greenleaf@vioquestpharm.com Brian Lenz Chief Financial Officer 908-766-4400 ext. 117 brian.lenz@vioquestpharm.com
Photo: http://www.newscom.com/cgi-bin/prnh/20070117/NYW085LOGOAP Archive: http://photoarchive.ap.orgPRN Photo Desk, photodesk@prnewswire.comVioQuest Pharmaceuticals
CONTACT: Daniel Greenleaf, President and CEO, +1-908-766-4400, ext. 115,dan.greenleaf@vioquestpharm.com, or Brian Lenz, Chief Financial Officer,+1-908-766-4400, ext. 117, brian.lenz@vioquestpharm.com, both of VioQuestPharmaceuticals
Web site: http://www.vioquestpharm.com/
