NEWARK, N.J., Jan. 23, 2019 /PRNewswire/ -- Rafael Holdings,
Inc. (NYSE American: RFL) today announced that it has purchased a
majority stake in Rafael Pharmaceuticals, Inc., (Rafael
Pharma). Rafael Pharma is a clinical stage, metabolic
oncology-therapeutics company developing innovative, highly
selective and well tolerated anti-cancer agents.
Building on its prior investments, Rafael Holdings further
exercised its warrant and converted other interests. The
total investment to date from Rafael Holdings in Rafael Pharma
securities, inclusive of cash, debt instruments, conversion of
notes and contributions from minority beneficial holders, has
increased to $66.7 million. The
Company and its subsidiaries now hold 51.0% of the outstanding
stock of Rafael Pharma. (Exclusive of minority beneficial holders'
interests, Rafael Holdings now holds 38.7% of the outstanding
equity in Rafael Pharma).
Howard Jonas, Chairman and CEO of
Rafael Holdings, said, "We continue to invest in Rafael Pharma to
support the promising clinical development of its lead drug,
devimistat (CPI-613®), as well as other Rafael Pharma agents now in
pre-clinical development that have been discovered from its Altered
Metabolism Directed platform. As the two companies further
align, we strengthen our capacity to leverage their complementary
attributes for mutual benefit."
"We very much appreciate the continuing investment by Rafael
Holdings," said Sanjeev Luther,
President and Chief Executive Officer of Rafael Pharmaceuticals.
"With this support, we believe we are well positioned to advance
our clinical program and products in our development pipeline
including two recently initiated, pivotal phase III studies of our
lead drug, devimistat (CPI-613®) for patients battling metastatic
pancreatic cancer and relapsed AML."
Rafael Pharma's first-in-class clinical lead compound,
devimistat, is being evaluated in multiple Phase I, I/II, and III
clinical studies. Devimistat has been granted orphan drug
designation for the treatment of patients with pancreatic cancer,
acute myeloid leukemia (AML), peripheral T-cell lymphoma (PTCL),
Burkitt lymphoma and myelodysplastic syndromes (MDS) by the US Food
and Drug Administration, and for patients with pancreatic cancer
and AML by the European Medicines Agency (EMA).
Rafael Holdings and its subsidiaries had previously invested in
debt securities of Rafael Pharma and partially exercised the
warrant for other shares of Series D Preferred Stock. The warrant
is exercisable for up to a 56% of the fully diluted equity of
Rafael Pharmaceuticals.
All statements above that are not purely about historical
facts, including, but not limited to, those in which we use the
words "believe," "anticipate," "expect," "plan," "intend,"
"estimate," "target" and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. While these forward-looking statements
represent our current judgment of what may happen in the future,
actual results may differ materially from the results expressed or
implied by these statements due to numerous important
factors. Our filings with the SEC provide detailed
information on such statements and risks, and should be consulted
along with this release. To the extent permitted under applicable
law, Rafael Holdings, Inc. assumes no obligation to update any
forward-looking statements.
About Rafael Holdings, Inc.:
Rafael Holdings holds
commercial real estate assets and interests in two clinical stage
pharmaceutical companies. The real estate holdings consist of
properties in Newark and
Piscataway, New Jersey and
Jerusalem, Israel. The
pharmaceutical holdings comprise majority interests in Rafael
Pharmaceuticals, Inc., and Lipomedix Pharmaceuticals Ltd.
Both are focused on development and commercialization of drugs in
the oncology space. For more information, visit
www.rafaelholdings.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/rafael-holdings-acquires-majority-stake-in-rafael-pharma-300783075.html
SOURCE Rafael Holdings, Inc.