The three purchasers were two existing investors in the company, Venrock Associates (which is affiliated with Anthony Evnin, a director of the company) and New Enterprise Associates (which is affiliated with Charles Newhall, III, a director of the company), and a trust affiliated with Robert Johnston, the company’s executive chairman of the board of directors.
The proceeds from the private placement will be used to fund completion of the ongoing Dextofisopam Phase IIb trial and company operations through 2009. If the trial is successful, this financing would also support additional efforts to negotiate a strategic partnership or license arrangement with a pharmaceutical company.
This is consistent with Pharmos’s strategy as previously communicated, since the company does not have the resources to continue to develop Dextofisopam through a Phase III trial, the company said.