MethylGene Announces $34.5 Million Financing to Develop Oncology & Antifungal Drugs
MethylGene Inc. recently announced its intention to complete a private placement of $34.5 million. Institutional investors participating in the offering include a fund managed by Baker Bros. Advisors, LLC, Tavistock Life Sciences, a fund managed by OrbiMed Advisors LLC, funds managed by QVT Financial LP and Tang Capital Partners, LP. Current shareholders ProQuest Investments III, LP and Fonds de solidarité FTQ will also be participating in the offering.
“I’m very pleased to announce this financing and am particularly gratified by the high-caliber life science investors we attracted. I also want to thank our current investors for their continuing support,” said Mr. Charles Grubsztajn, President and Chief Executive Officer. “The proceeds of this financing will provide us with sufficient capital to advance our two primary product candidates into Phase II clinical trials in specific indications that we believe will offer the most benefit to patients and value to shareholders. With the appropriate resources now in place, we look forward to implementing our strategic plan.”
The proceeds from the offering will be used to advance MGCD265 into Phase II clinical trials in non-small cell lung and other cancer indications. In addition, the company will also be advancing MGCD290 into Phase II clinical trials in vulvovaginal candidiasis (VVC). With the proceeds from this offering and based on the current clinical development and operating plans, the company’s cash runway is expected to extend into 2014.
MethylGene Inc. is a clinical-stage biopharmaceutical company that develops novel therapeutics for cancer and infectious disease. The company’s lead product candidates include: MGCD265, an oral Met/VEGF receptor kinase inhibitor that is in Phase I/II clinical trials for solid tumor cancers and MGCD290, a fungal Hos2 inhibitor, for use in combination with fluconazole for fungal infections, which has completed Phase I clinical studies. The company’s partners include Otsuka Pharmaceutical Co. Ltd., Taiho Pharmaceutical Co. Ltd., and EnVivo Pharmaceuticals, Inc.
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