Published on August 26, 2009
FOR IMMEDIATE
RELEASE
NOVELOS
THERAPEUTICS ANNOUNCES $9 MILLION PRIVATE PLACEMENT
NEWTON, Mass., August 26, 2009
– Novelos Therapeutics, Inc.
(OTCBB: NVLT), a biopharmaceutical company focused on the development of
therapeutics to treat cancer and hepatitis, today announced that Novelos entered
into a definitive agreement with Purdue Pharma L.P., an existing investor, to
sell 13,636,364 shares of its common stock and warrants, expiring on December
31, 2015, to purchase an aggregate of approximately 4,772,728 shares of common
stock at an exercise price of $0.66 per share, for gross proceeds of $9
million.
Pursuant
to the definitive agreement with Purdue, Novelos initially sold to Purdue
5,303,030 shares of Novelos’ common stock and warrants to purchase 1,856,062
shares of its common stock for gross proceeds of $3.5
million. Subsequent closing(s) for the remaining $5.5 million will be
subject to availability of additional authorized shares.
Novelos
also agreed to negotiate with Purdue for rights to license, develop and
commercialize NOV-002 in the United States on an exclusive basis until the
conclusion of the pivotal Phase 3 trial for non-small cell lung cancer under a
Special Protocol Assessment (SPA) and Fast Track. The Phase 3 trial
is expected to conclude in early 2010. Novelos also granted Purdue a
conditional right of first refusal to acquire rights to NOV-002 in the United
States after the conclusion of the Phase 3 trial. Novelos already has
a partnership with Mundipharma, an independent associated company of Purdue, to
develop and commercialize NOV-002 in Europe and Asia (excluding
China). Novelos has also entered into a separate agreement to
exclusively negotiate with Mundipharma and its independent associated company on
a conditional basis for the rights to NOV-002 in Canada, Mexico and Latin
America, as well as granting Mundipharma and its independent associated company
a conditional right of first refusal to the NOV-002 rights in such territories
upon the conclusion of the exclusive negotiation period.
“I am
very pleased with Purdue’s continued support, providing Novelos funds for a
robust development program thru mid-2010,” said Harry Palmin, President and CEO
of Novelos. “We expect our pivotal 900-patient Phase 3 lung cancer
trial to conclude in early 2010. The trial was fully enrolled in
March 2008, with the primary endpoint of increased median overall survival to be
evaluated following the occurrence of 725 deaths.”
The
common stock and warrants were / will be issued in a private placement
transaction under Regulation D of the Securities of Act of 1933 and have not
been registered under the Securities Act of 1933, as amended, or any state
securities laws, and may not be offered or sold in the United States absent
registration with the Securities and Exchange Commission (the “SEC”) or an
applicable exemption from the registration requirements. Novelos has agreed
to file a registration statement with the SEC covering resales of the common
stock and the common stock issuable upon exercise of the
warrants.
1
About
Purdue Pharma L.P.
Purdue
Pharma L.P. and its associated U.S. companies are privately-held pharmaceutical
companies known for pioneering research on persistent pain. Headquartered in
Stamford, CT, Purdue is engaged in the research, development, production, and
distribution of both prescription and over-the-counter medicines and hospital
products. Additional information about Purdue can be found at www.purduepharma.com.
About
Novelos Therapeutics, Inc.
Novelos
Therapeutics, Inc. is a biopharmaceutical company commercializing oxidized
glutathione-based compounds for the treatment of cancer and
hepatitis. NOV-002, the lead compound currently in Phase 3
development for lung cancer under SPA and Fast Track, acts together with
chemotherapy as a chemopotentiator and a chemoprotectant. NOV-002 is
also in Phase 2 development for early-stage breast cancer and
chemotherapy-resistant ovarian cancer. Novelos has a partnership with
Mundipharma to develop and commercialize NOV-002 in Europe and Asia (excluding
China). Novelos’ second compound, NOV-205, acts as a hepatoprotective
agent with immunomodulating and anti-inflammatory properties. NOV-205
is in Phase 1b development for chronic hepatitis C
non-responders. Both compounds have been partnered with Lee’s Pharm
in China. For additional information about Novelos please visit www.novelos.com
# #
#
|
COMPANY
|
INVESTOR
RELATIONS
|
|
Harry
S. Palmin, President and CEO
|
Stephen
Lichaw
|
|
Ph:
617-244-1616 x11
|
Ph:
201-240-3200
|
|
Email:
hpalmin@novelos.com
|
Email:
slichaw@novelos.com
|
Novelos
Therapeutics, Inc.
One
Gateway Center, Suite 504
Newton,
MA 02458
This
news release contains forward-looking statements. Such statements are
valid only as of today, and we disclaim any obligation to update this
information. These statements are subject to known and unknown risks
and uncertainties that may cause actual future experience and results to differ
materially from the statements made. These statements are based on
our current beliefs and expectations as to such future outcomes. Drug
discovery and development involve a high degree of risk. Factors that
might cause such a material difference include, among others, uncertainties
related to the ability to attract and retain partners for our technologies, the
identification of lead compounds, the successful preclinical development
thereof, the completion of clinical trials, the FDA review process and other
government regulation, our pharmaceutical collaborators’ ability to
successfully develop and commercialize drug candidates, competition from other
pharmaceutical companies, product pricing and third-party
reimbursement.
2