Vivus, Acadia Pharmaceuticals, and EPIX Pharmaceuticals all entered financing agreements to support their respective clinical programs. Vivus reports that it will receive roughly $65 million through a registered direct offering of 365,508 shares of its common stock.
The group of investors, consisting of new and existing investors, agreed to purchase the shares for $7.77 per share. Among other things, Vivus will use the money for clinical trials related to Qnexa™ being investigated for the treatment of obesity and diabetes.
Acadia secured $60 million from Kingsbridge Capital. The firms signed a tranched committed equity financing facility (CEFF) that spans the following three years and allows for the purchase of approximately 7 million newly issued shares.
Acadia also issued a warrant to Kingsbridge to purchase 350,000 shares of common stock at a 25% premium to its average closing price over the five days preceding the signing of the CEFF.
“The new CEFF with Kingsbridge provides us with added financial flexibility and strength as we move forward with a portfolio of our most advanced product candidates including pimavanserin, which is currently in Phase III for the treatment of Parkinson’s disease psychosis,” says Thomas H. Aasen, vp and CFO.
Kingsbridge Capital will also provide up to $50 million over the next three years to EPIX. Under the tranched CEFF, Kingsbridge will purchase the lesser of 8.3 million newly issued shares or $50 million.
Additionally, EPIX issued a warrant to Kingsbridge to purchase up to 400,000 shares of common stock at an exercise price of approximately $2.49 per share. This represents 125% of the average closing prices over the five trading days preceding this agreement.
“This financing facility should provide EPIX with additional access to capital as we continue to execute our Vasovist® monetization and clinical development strategies,” says Kim C. Drapkin, chief financial officer of EPIX. “We have recently resubmitted our New Drug Application for Vasovist, initiated our Phase IIb proof-of-concept program for PRX-03140 for the treatment of Alzheimer’s disease, and expect to commence our Phase IIb trial for PRX-08066 for the treatment of pulmonary hypertension associated with chronic obstructive pulmonary disease.”