Synergy Pharmaceuticals Raises $7.09m For SP-304 Trial

Synergy Pharmaceuticals has completed the final tranche of its private placement. It raised gross proceeds of an aggregate $7.09 million through the sale of 10,132,143 shares of common stock, at a price of $0.70 per share.

The proceeds from the financing will be used to fund a phase-IIa clinical trial of SP-304 for chronic constipation, which the company plans to initiate in late 2009 or early 2010.

Gabriele Cerrone, Chairman of Synergy, said: “This financing will enable Synergy to reach a critical milestone in its clinical development process, namely the completion of the Phase IIa proof-of-concept clinical trial in patients with chronic constipation, and also will provide clear potential for the drug to treat patients with constipation-predominant irritable bowel syndrome.”

“The successful financing in this challenging environment in our opinion reflects the strong interest in SP-304 and the GC-C receptor agonist class of drugs,” he added.