Singapore, Sep 09, 2010: EntreMed, a US based clinical-stage pharmaceutical company focused on the development of ENMD-2076, has entered into a securities purchase agreement with a group of strategic investors for gross proceeds of approximately $5.1 million. The financing will provide capital to fund operations through 2011 and enable the Company to move forward with expansion of development plans for ENMD-2076, which is currently in phase I and phase II clinical trials. The ongoing phase II trial of ENMD-2076 in ovarian cancer patients continues on track and the company looks forward to the presentation of data early in 2011.
The investor group was led by Dr Tak W Mak, Director of The Campbell Family Institute for Cancer Research, and includes scientific advisers to EntreMed as well as experienced investors who have expertise both in oncology and drug development in the China markets.
Concurrent with the execution of the securities purchase agreement, EntreMed entered into a rights agreement with Selected Value Therapeutics (SVT) pursuant to which SVT has an option to exercise, on behalf of the investors, certain license, development and commercialization rights for ENMD-2076 in China, enabling EntreMed to leverage the experience and access that these investors have in this growing market. If the option is exercised, EntreMed will be entitled to receive development milestone payments and royalties on future product sales within the geographic market. The option is exercisable at any time until December 31, 2011.
"We worked with Selected Value Therapeutics to develop an innovative financing structure that accomplishes our financing goals with minimum dilution to our current investors," said Mr Michael M Tarnow, Executive Chairman of EntreMed. "The financing extends our cash runway through 2011. We are on track to complete our current phase II ovarian cancer study and, based on the results from our phase I studies, will move forward with our plans for expansion into additional clinical trials in other indications. We view both the investment in the Company and the option to participate in the clinical development of the compound in China as a vote of confidence in the potential of ENMD-2076."
Dr Tak W Mak, a scientific adviser to EntreMed and a co-founder of Miikana Therapeutics, which was later acquired by EntreMed in 2006, added, "I have been involved with ENMD-2076 since its discovery by Miikana. We look forward to EntreMed's further development of this compound and are encouraged by its potential to improve the lives of cancer patients in the US and abroad."
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