MOUNTAIN VIEW, Calif., Nov. 20 /PRNewswire-FirstCall/ -- VIVUS, Inc. (Nasdaq: VVUS - News), a pharmaceutical company dedicated to the development and commercialization of novel therapeutic products addressing obesity and sexual health, today announced that it has entered into a securities purchase agreement with several institutional investors for the sale of its common stock in a registered direct offering. Proceeds from the offering will be approximately $33.6 million. Under the terms of the financing, VIVUS will sell 9,600,000 shares of VIVUS common stock at a price of $3.50 per share. The shares were priced at market based on a three-day trailing average closing price. All of the shares of common stock are being offered pursuant to an effective Registration Statement on Form S-3 previously filed with the Securities and Exchange Commission.
Caxton Advantage Life Sciences Fund, L.P., led the financing. Also participating were new and existing investors, including Euclid SR Partners, OrbiMed Advisors LLC, Franklin Templeton Investments and Quogue Capital LLC. VIVUS intends to use the proceeds from the financing for general corporate purposes and to fund clinical trials of our product candidates, including the advancement of the clinical program for Qnexa(TM) for the treatment of obesity.
“Obesity represents a large and growing market with significant opportunity to improve patient health benefits. We believe the landscape for obesity treatment is currently evolving and combination therapies stand to play an important role in the future,” stated Eric Roberts, Managing Director of Caxton Advantage Venture Partners.
“We are pleased to add these high quality institutional private equity and venture funds as shareholders,” stated Leland F. Wilson, president and CEO of VIVUS. “The support of our new and existing investors will facilitate the clinical programs that are required to move each of our Phase 3-ready programs toward commercialization.”
About VIVUS
VIVUS, Inc. is a pharmaceutical company dedicated to the development and commercialization of next-generation therapeutic products addressing obesity and sexual health. VIVUS has three products that are positioned to enter Phase 3 clinical trials, and one product currently under NDA review by the FDA. The investigational pipeline includes: Qnexa(TM), for which a Phase 2 study has been completed for the treatment of obesity; Testosterone MDTS®, for which a Phase 2 study has been completed for the treatment of Hypoactive Sexual Desire Disorder (HSDD); EvaMist(TM), for which a Phase 3 study has been completed and an NDA submitted for the treatment of menopausal symptoms; and avanafil, for which a Phase 2 study has been completed for the treatment of erectile dysfunction (ED). MUSE® is approved and currently on the market for the treatment of ED. For more information on clinical trials and products, please visit the company’s web site at www.vivus.com .
Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as “anticipate,” “believe,” “forecast,” “estimated” and “intend,” among others. These forward-looking statements are based on VIVUS’ current expectations and actual results could differ materially. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, substantial competition; uncertainties of patent protection and litigation; uncertainties of government or third party payer reimbursement; reliance on sole source suppliers; limited sales and marketing efforts and dependence upon third parties; risks related to the development of innovative products; and risks related to failure to obtain FDA clearances or approvals and noncompliance with FDA regulations. As with any pharmaceutical under development, there are significant risks in the development, regulatory approval and commercialization of new products. There are no guarantees that the EvaMist NDA submission will be filed with the FDA for substantive review, or that it will be approved in a timely basis, or at all. There are no guarantees that future clinical studies discussed in this press release will be completed or successful or that any product will receive regulatory approval for any indication or prove to be commercially successful. VIVUS does not undertake an obligation to update or revise any forward-looking statement. Investors should read the risk factors set forth in VIVUS’ Form 10-K for the year ended December 31, 2005 and periodic reports filed with the Securities and Exchange Commission.
CONTACT: VIVUS, Inc. Timothy E. Morris Chief Financial Officer 650-934-5200
Vida Communication Stephanie Diaz 415-675-7400
Source: VIVUS, Inc.
