03.08.2017 Our Portfolio Company, Proteon Therapeutics Announces Closing of $22 Million Convertible Preferred Stock Financing
Moscow, Russia, August, 3, 2017 -- A portfolio company of Pharmstandard International, S.A., Proteon Therapeutics, Inc. (Nasdaq:PRTO), which is developing novel, first-in-class therapeutics to address the medical needs of patients with kidney and vascular diseases, today announced that it has closed its previously announced $22 million private placement for the sale of Series A Convertible Preferred Stock ("Preferred Stock") to a syndicate of current and new investors led by an affiliate of Deerfield Management with other investors in the transaction being Abingworth, Fairmount Funds, Intersouth Partners, Perceptive Advisors, Pharmstandard, RA Capital, Skyline Ventures and TVM Capital.
Under terms of the securities purchase agreement and the Preferred Stock Certificate of Designation, Jonathan Leff, a partner at Deerfield Management, has joined Proteon's Board of Directors, which has been expanded to nine directors.
At the closing, Proteon issued 22,000 shares of Preferred Stock, which are convertible into common shares at an initial conversion price of $0.9949 per share, or 22,112,775 shares of common stock. Please refer to the Company's Form 8-K, which was filed with the Securities and Exchange Commission on June 23, 2017, for the complete terms of the Preferred Stock transaction.
Proteon intends to use the proceeds from the transaction to complete the ongoing PATENCY-2 trial and fund continued market access activities. The financing also extends the Company's cash runway into the fourth quarter of 2019, which allows the Company to operate for more than six months beyond the expected release of topline data from the PATENCY-2 Phase 3 clinical trial based on the Company's current operating plan.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of these securities, nor shall there be any sale of any these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be sold pursuant to the securities purchase agreement will not have been registered under the Securities Act of 1933, as amended, or state securities laws as of the time of issuance and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements.
Vonapanitase is an investigational drug intended to improve hemodialysis vascular access outcomes. Vonapanitase is applied in a single administration and is currently being studied in a Phase 3 program in patients with chronic kidney disease (CKD) undergoing surgical creation of a radiocephalic arteriovenous fistula for hemodialysis. Vonapanitase has received breakthrough therapy, fast track and orphan drug designations from the FDA, and orphan medicinal product designation from the European Commission, for hemodialysis vascular access indications. In addition, vonapanitase may have other surgical and endovascular applications in diseases or conditions in which vessel injury leads to blockages in blood vessels and reduced blood flow. Proteon is currently conducting a Phase 1 clinical trial of vonapanitase in patients with peripheral artery disease (PAD).
About Proteon Therapeutics
Proteon Therapeutics is committed to improving the health of patients with kidney and vascular diseases through the development of novel, first-in-class therapeutics. Proteon's lead product candidate, vonapanitase, is an investigational drug intended to improve hemodialysis vascular access outcomes. Proteon is currently enrolling patients in PATENCY-2, a Phase 3 clinical trial evaluating vonapanitase in patients with CKD undergoing surgical creation of a radiocephalic arteriovenous fistula for hemodialysis. Proteon is also evaluating vonapanitase in a Phase 1 clinical trial in patients with PAD. For more information, please visit www.proteontx.com
Pharmstandard International S.A. – is a company with the main focus on venture investments in innovative medicines/therapies with strong potential both globally and in Russia. Pharmstandard International S.A. is a fully owned subsidiary of Pharmstandard, JSC – Russia's leading pharmaceutical producer. For more information, please visit: www.pharmstd.lu
Pharmstandard Ventures – is venture branch of Pharmstandard, JSC, providing professional support to Pharmstandard International S.A. in venture transactions. For more information, please visit: www.pharmstd-ventures.com