Print
Email
Print Edition StoriesWednesday, August 26, 2009
Novelos to land $9M from private placement
By Mass High Tech staff
MHT's Julie Donnelly: Life science startups finding investments
MHT's Galen Moore: Hiring trends and opportunities
MHT's Marc Songini: Technology to keep seniors healthy
Newton-based biotechnology company Novelos Therapeutics Inc. has entered a private placement agreement with existing investor Purdue Pharma LP to reap proceeds of $9 million, the company announced today.
The biotech plans to sell 13.6 million shares of common stock and six-year warrants, enabling Purdue Pharma to buy about 4.8 million shares of Novelos (OTCBB: NVLT) common stock at 66 cents per share. The private placement has already gone into effect, with Novelos pulling in $3.5 million. Novelos officials said the remaining $5.5 million to be earned would rely on availability of authorized stock shares.
Additionally, Novelos announced that the two companies would negotiate Purdue’s rights to exclusive U.S. licensing, development and commercialization of the biotech’s lead drug, a lung cancer treatment called NOV-002. Novelos has an exclusivity agreement with Mundipharma International Corp. Ltd. for the development and commercialization of NOV-002 in Europe and Asia.
Novelos announced a previous private placement with Purdue Pharma in February, bringing in $10 million in gross proceeds for the company through the sale of convertible preferred stock and warrants.
Novelos claims that NOV-002 has shown positive results in Phase 2 trials for other cancer types, as well.
Comments
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
RSS Feeds
