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Friday, 21 June 2013
Soligenix to raise $7 mln in public offering that sees participation of billionaire life sciences investor
Soligenix (OTCQB:SNGX), a clinical stage biopharmaceutical company, has announced a $7 million public offering of its common stock and warrants as it continues to advance its pipeline of drugs, with a chunk of the funds hailing from a firm linked to billionaire life sciences investor Randal J. Kirk.
The company, which is focused on developing products to treat inflammatory diseases and biodefense threats, said it has agreed with institutional investors and members of its management and board to sell around $7.0 million of its securities.
This will be made up of 6.6 million shares of common stock at a price of $1.05 apiece, and five-year warrants to purchase up to about 5.0 million shares of common stock at a price of $1.65 per share.
Participants in the offering, from which funds will be used to develop Soligenix's product candidates and for working capital, include Third Security, and a venture capital firm founded by life sciences investor Kirk. Soligenix recently inked a collaboration deal to develop a treatment for melioidosis, an often lethal disease, with Intrexon, which is run by Kirk.
Apart from this collaboration, Soligenix holds many products in its pipeline, with its two lead candiates including oral BDP for pediatric Crohn's disease, which is currently in a phase I clinical trial, and a potential treatment for oral mucositis, for which the company plans to start a phase II clinical study in the second half of this year.
Earlier this month, the company received fast track designation from U.S. regulatory authorities for the treatment for oral mucositis, which is seen as a result of radiation and/or chemo in head and neck cancer patients.
Soligenix is also working on its Thermovax vaccine thermostabilization technology. According to the company, for vaccines that are intended for long-term stockpiling, such as for use in biodefense or in pandemic situations, the use of ThermoVax, which has been tested in combination with the company's RiVax and VeloThrax vaccines, can lead to easier storage and the distribution of strategic national stockpile vaccines in emergency situations.