Avalon Pharmaceuticals Closes $10 Million in Private Placement of Common Stock to Institutional Investors
January 23 2007 - 3:32PM
PR Newswire (US)
GERMANTOWN, Md., Jan. 23 /PRNewswire-FirstCall/ -- Avalon
Pharmaceuticals, Inc. (Nasdaq and NYSE ArcaEx(R): AVRX), today
announced that it has closed the $10 million private placement to
institutional investors previously announced on January 22, 2007. A
total of 3 million shares of Avalon's common stock were issued in
the private placement at a price per share of $3.34. The price
represented a $0.26 or 8.4% premium to Avalon's closing price on
Friday January 19, 2007. Participants in the transaction included
Federated Kaufmann Funds, Merlin Nexus II, L.P., Passport
Management, LLC, Xmark Opportunity Funds, Biotechnology Value Fund
and other select institutional investors. Proceeds will be used to
fund further development of Avalon's lead oncology drug, AVN944,
and the continued development of additional pipeline programs using
the company's proprietary technology, AvalonRx(R). "This financing
adds to our financial base as we move our lead program, AVN944,
into Phase II studies for the treatment of both solid tumors and
hematological malignancies," stated Kenneth C. Carter, Ph.D.,
President and CEO of Avalon. "The funds will also contribute to the
advancement of several of our preclinical programs for the
development of first-in-class drugs using our AvalonRx(R) discovery
platform. We are pleased to have attracted such a high quality
group of investors in this offering." WR Hambrecht + Co served as
lead placement agent and Rodman & Renshaw, LLC and Susquehanna
Financial Group, LLLP served as co-placement agents for the
transaction. Trout Capital LLC acted as financial advisor to
Avalon. The shares were issued in a private placement under
Regulation D of the Securities Act of 1933, as amended. The shares
therefore have not been registered under the Act or any state
securities law or regulation and may not be offered or sold in the
United States absent registration or an applicable exemption from
registration requirements. About Avalon Pharmaceuticals Avalon
Pharmaceuticals is a biopharmaceutical company using its
proprietary technology, AvalonRx(R), to discover and develop cancer
therapeutics. Avalon has a lead product in Phase I clinical
development, AVN944, as well as preclinical programs to discover
inhibitors for the Beta-catenin, Survivin and Aurora pathways. The
Company also has drug discovery collaborations with MedImmune,
Novartis, ChemDiv and Medarex. Avalon Pharmaceuticals was
established in 1999 and is headquartered in Germantown, Md. About
AVN944 AVN944 is an oral small molecule drug candidate that
inhibits inosine monophospate dehydrogenase (IMPDH), an enzyme that
is critical for cells to be able to synthesize guanosine
triphosphate (GTP), a molecule required for DNA synthesis and
cellular signaling. Avalon filed an IND with the FDA in August 2005
and initiated U.S. Phase I clinical trials in January 2006 for use
of AVN944 for the treatment of hematological cancers. Interim data
from the study, announced in December 2006, indicate that AVN944 is
well tolerated, has dose-dependent pharmacokinetics, induces
biomarkers of programmed cell death in cancer cells from patients,
and has resulted in stabilized disease after a one-month treatment
cycle in half of the patients that have been treated thus far.
Comprehensive data on the biological and clinical activity of
AVN944 from the Phase I study and the initiation of multiple Phase
II studies are expected by mid-year 2007. About AvalonRx(R)
AvalonRx(R) is a comprehensive, innovative and proprietary suite of
technologies based upon large-scale gene expression analysis. This
platform facilitates drug discovery by expanding the range of
therapeutic targets for drug intervention, including targets and
target pathways frequently considered intractable using
conventional HTS approaches. It allows more informed decisions
about which compounds to advance towards clinical trials, and
facilitates drug development through identification of biomarkers
of efficacy. The analysis of the selected biomarkers can aid in the
stratification of patients or provide early indicators of response.
Safe Harbor Statement This announcement contains, in addition to
historical information, certain forward-looking statements that
involve risks and uncertainties, in particular, related to the use
of the proceeds of the offering in the further development of
AVN944 and in the continued development of additional pipeline
programs using AvalonRx(R), the potential to advance Avalon's
preclinical programs and the potential to advance AVN944 in
clinical trials. Such statements reflect the current views of
Avalon management and are based on certain assumptions. Actual
results could differ materially from those currently anticipated as
a result of a number of factors, risks and uncertainties, including
the risk that the discover programs may not be successful, the risk
that AVN944 will not progress successfully in its clinical trials,
and other risks described in our filings with the SEC. Contacts:
Avalon Pharmaceuticals, Inc. Noonan Russo Gary Lessing Wendy Lau
(Media) Executive Vice President & CFO Tel: (212) 845-4272 Tel:
(301) 556-9900 Fax: (301) 556-9910 The Trout Group LLC Email: Chad
Rubin (Investors) Tel: (212) 477-9007 ext. 47 DATASOURCE: Avalon
Pharmaceuticals, Inc. CONTACT: Gary Lessing, Executive Vice
President & CFO of Avalon Pharmaceuticals, Inc., Tel:
+1-301-556-9900, Fax: +1-301-556-9910, ; or Media, Wendy Lau, of
Noonan Russo, +1-212-845-4272; or Investors, Chad Rubin,
+1-212-477-9007 ext. 47, of The Trout Group LLC, both for Avalon
Pharmaceuticals, Inc.
Copyright