Hybridon to get $5 million for cancer programs

The company expects to use the proceeds of the financing to fund its toll-like receptor 9 (TLR9) drug development activities, including an ongoing phase II trial of IMOxine in renal cell carcinoma and a new phase I/II clinical trial of IMOxine in combination with chemotherapy in non-small cell lung cancer.

The agreements concern a private financing of $5 million principal amount of 4% convertible subordinated notes due 2008. The notes will be convertible into shares of Hybridon common stock at an initial conversion rate of $0.89 per share, representing a premium of 50% over the volume-weighted average price of Hybridon common stock over the preceding ten day period.

Hybridon is developing novel therapeutics based on synthetic nucleic acid chemistry for the treatment of cancer, asthma/allergies, and infectious diseases. The company’s proprietary immune modulatory oligonucleotide (IMO) drug candidates are designed to modulate immune responses through toll-like receptors, the body’s first line of defense against disease.