Alexza Pharmaceuticals completed a transaction with Symphony Capital Partners and its co-investors to provide $50 million to fund the development of two Phase II drugs related to panic and agitation. AZ-002 (Staccato® alprazolam) is being developed for the acute treatment of panic attacks associated with panic disorder and AZ-004 (Staccato® loxapine) is being developed to treat acute agitation in patients with schizophrenia.
"The uniqueness of the collaboration with Symphony Capital is the ability to continue rapid development of these important product candidates, maintain exclusive rights to them, and at the same time, minimize the dilution and risk to our shareholders," says Thomas B. King, President and CEO of Alexza Pharmaceuticals.
Under the terms of the four-year agreement, Alexza and Symphony Capital established Symphony Allegro, which will provide funding to Alexza to accelerate clinical and other related development activities of the two product candidates. Alexza has granted a license to the intellectual property for the selected product candidates. Through a purchase option, Alexza retains the exclusive right but not the obligation to acquire 100% of the equity of Symphony Allegro at specified prices during the term of the agreement. If Alexza chooses not to exercise the purchase option, Symphony Allegro will retain the rights to AZ-002 and AZ-004.
In exchange for the purchase option, Alexza will issue to Symphony Allegro investors a five-year warrant to purchase two million shares of Alexza common stock at $9.91 per share, representing a 25% premium over the recent 60 trading-day average closing price of $7.93 per share.