Intellect Neurosciences Inc. engages in the discovery and development of disease-modifying therapeutic agents for Alzheimer’s disease (AD). The company recently restructured its balance sheet and today announced that through the issuance of common stock, it was successful in extinguishing about $24 million of accrued interest of debt and preferred stock.
In addition, the company said that several of its “significant” shareholders pooled together to provide enough funds fuel the company’s operations for the next 12 months. Company chairman and CEO Daniel Chain, PhD, said the funding enables the company to pursue new opportunities for its drug development.
“Our stakeholders recognize the value proposition inherent in Intellect’s intellectual property and pipeline programs,” Chain stated in the press release. “This financial restructuring is a tremendous accomplishment, opening up exciting new strategic opportunities to develop our internal drug development pipeline. We are pleased that our largest shareholders have provided us immediate financial resources to sustain our operations for the next 12 months and are committed to continue to support the company. The immediate cash infusion and our shareholders’ financial commitment should enable the company to maintain operations through completion of phase 3 trials for Bapineuzumab.”
Bapineuzumab, an antibody co-developed by Wyeth/Pfizer and Johnson & Johnson under a royalty-bearing license from Intellect, has the potential to be the first disease-modifying drug for AD on the market.
While currently marketed drugs are successful in transiently affecting some symptoms of AD, Intellect says there are no drugs available that slow or arrest the progression of the disease. However, Bapineuzumab has the potential to do so, and some analysts believe that Bapineuzumab may have the potential to reach several billion in annual worldwide sales.