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news.PharmaFrontiers has raised approximately $23 million in a private placement to advance the development of its multiple sclerosis, rheumatoid arthritis and diabetes treatment candidates.
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The proceeds will be used primarily to fund PharmaFrontiers’ phase IIb trial with Tovaxin for the treatment of multiple sclerosis. The company expects to begin the trial in the second quarter of 2006. The funds will also be used to complete preclinical development and initiate human clinical trials of the company’s rheumatoid arthritis and type 1 diabetes therapies.
In addition, PharmaFrontiers’ board of directors has approved, and will recommend to the company’s shareholders for their approval, a one-for-10 reverse stock split. The company believes this reverse stock split will enable it to apply for a listing on Nasdaq.
“This additional capital is a tremendous catalyst for the company and will provide us with the financial resources to implement our clinical program, for both our T-cell and stem cell technologies and to fulfill their potential as life-saving therapies,” said David McWilliams, CEO of PharmaFrontiers. “We believe that the strengthening of our capital structure in connection with the reverse stock split will provide the backbone for a strong organization with prospects for a Nasdaq listing.”