Fortress Biotech Announces that its Subsidiary, Mustang Bio, Closes $94.5 Million Private Placement Financing
February 02 2017 - 7:30AM
Fortress Biotech, Inc. (NASDAQ:FBIO) (“Fortress”), a
biopharmaceutical company dedicated to acquiring, developing and
commercializing novel pharmaceutical and biotechnology products,
today announced that Mustang Bio, Inc. (“Mustang”), a subsidiary of
Fortress, has closed on a total of $94.5 million, prior to fees and
expenses, in a private placement financing. OPN Capital Markets,
the healthcare related investment banking and research division of
National Securities Corporation, a wholly owned subsidiary of
National Holdings Corporation (NASDAQ:NHLD), acted as sole
placement agent in connection with the financing.
Dr. Lindsay A. Rosenwald, Fortress’s Chairman, President and
Chief Executive Officer, said, “We believe this financing
underscores the potential of Mustang’s CAR T therapies to be
substantial value-drivers for patients and investors. We have
already seen early success from Mustang’s MB-101, which achieved an
unprecedented complete response in a glioblastoma patient enrolled
in the Phase 1 trial. The patient case study from the Phase 1
clinical trial of MB-101 was published in the December 29, 2016
edition of the New England Journal of Medicine. If we see
similar results in other trial participants, it may support an
accelerated approval pathway.”
Michael S. Weiss, Mustang’s Chairman of the Board, added, “We
are thrilled to announce the closing of this financing, which we
believe places us in a strong position to advance our two lead CAR
T immunotherapies through Phase 1 data readout early next year, and
to grow Mustang’s pipeline by exploring additional applications for
our CAR T technology in areas outside of our initial brain cancer
and acute myeloid leukemia focus. In addition, we plan to continue
working with our research partners at City of Hope to identify new
CAR T development candidates that have the potential to provide
meaningful benefit to patients.”
The securities sold in the private placement financing 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 or an applicable exemption from such registration
requirements.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation or sale would be unlawful.
About Mustang BioMustang Bio, Inc., a
subsidiary of Fortress Biotech, Inc., is a clinical-stage
biopharmaceutical company focused on the development and
commercialization of novel cancer immunotherapy products designed
to utilize the power of the patient’s own immune system to
eliminate cancer cells. Mustang aims to acquire rights to these
technologies by licensing or otherwise acquiring an ownership
interest in the technologies, funding their research and
development, and out-licensing or bringing the technologies to
market. Mustang is currently developing proprietary Chimeric
Antigen Receptor (CAR) engineered T cells (CAR T) technology, which
was licensed from Drs. Stephen Forman and Christine Brown’s
laboratory at the City of Hope National Medical Center (COH). CAR T
uses the patient’s own T cells to engage and destroy specific
tumors, by selecting specific T cell subtypes, genetically
engineering them to express Chimeric Antigen T cell Receptors and
placing them back in the patient where they recognize and destroy
cancer cells. Mustang, through a research agreement with COH, plans
to develop CARs across multiple cancers. Its lead programs in acute
myeloid leukemia and brain cancer are in Phase 1 clinical trials.
Mustang is registered under the Securities Exchange Act of 1934, as
amended, and files periodic reports with the U.S. Securities and
Exchange Commission. For more information, visit
www.mustangbio.com.
About Fortress BiotechFortress
Biotech, Inc. (“Fortress”) is a biopharmaceutical company dedicated
to acquiring, developing and commercializing novel pharmaceutical
and biotechnology products. Fortress develops and commercializes
products both within Fortress and through certain of its subsidiary
companies, also known as Fortress Companies. Additionally, Fortress
recently acquired a controlling interest in National Holdings
Corporation (NASDAQ:NHLD), a diversified independent brokerage
company (together with its subsidiaries, “NHLD”). In addition to
its internal development programs, Fortress leverages its
biopharmaceutical business expertise and drug development
capabilities and provides funding and management services to help
the Fortress Companies achieve their goals. Fortress and the
Fortress Companies may seek licensings, acquisitions, partnerships,
joint ventures and/or public and private financings to accelerate
and provide additional funding to support their research and
development programs. For more information, visit
www.fortressbiotech.com.
Forward-Looking StatementsThis
press release may contain “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, as amended. Such
statements include, but are not limited to, any statements relating
to our growth strategy and product development programs and any
other statements that are not historical facts. Forward-looking
statements are based on management’s current expectations and are
subject to risks and uncertainties that could negatively affect our
business, operating results, financial condition and stock price.
Factors that could cause actual results to differ materially from
those currently anticipated include: risks relating to the timing
of starting and completing clinical trials; risks relating to our
growth strategy; risks relating to the results of research and
development activities; our ability to obtain, perform under and
maintain financing and strategic agreements and relationships;
uncertainties relating to preclinical and clinical testing; our
dependence on third-party suppliers; our ability to attract,
integrate, and retain key personnel; the early stage of products
under development; our need for substantial additional funds;
government regulation; patent and intellectual property matters;
competition; as well as other risks described in our SEC filings.
We expressly disclaim any obligation or undertaking to release
publicly any updates or revisions to any forward looking statements
contained herein to reflect any change in our expectations or any
changes in events, conditions or circumstances on which any such
statement is based, except as required by law.
Contacts:
Lucy Lu, MD, Executive Vice President & Chief Financial Officer
Fortress Biotech, Inc.
781‐652‐4500
ir@fortressbiotech.com
Fortress Biotech Media Relations
Laura Bagby
6 Degrees
(312) 448-8098
lbagby@6degreespr.com
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