Synergy Pharmaceuticals, Inc., a leading biopharmaceutical company focused on the development of new drugs to treat gastrointestinal disorders and diseases, recently announced that the company has completed a private placement, raising an aggregate $8.6 million through the sale of common stock at a price of $0.70 per share.
The proceeds from the private placement will be used to fund a Phase IIa clinical trial of Synergy’s SP-304 for chronic constipation, which is scheduled to commence in the first quarter of 2010. SP-304, a synthetic analog of the human gastrointestinal hormone uroguanylin, recently finished a Phase I clinical trial in volunteers.
Mr. Gabriele Cerrone, chairman of Synergy Pharmaceuticals, stated, “This financing combined with the earlier financing we announced last summer of $7.09 million considerably strengthens our balance sheet, reflecting the strong continued interest in our drug candidate SP-304 to treat GI disorders.” Mr. Cerrone continued, “We believe that the market for GI disorders is growing rapidly and there are very few treatment options available in this market. We are now on track to meet a critical milestone, namely the completion of the Phase IIa proof-of-concept clinical trial of SP-304 in patients with chronic constipation.”
The securities issued in the private placement have not been registered under the Securities Act of 1933, as amended. Accordingly, these securities may not be offered or sold in the United States, except pursuant to the effectiveness of a registration statement or an applicable exemption from the registration requirements of the Securities Act.