Adventrx announces $22.5M capital raise, mulls acquisition
Adventrx Pharmaceuticals has agreed to sell equity to RA Capital Management and other healthcare-related investors for a per unit purchase price of $2.75, representing gross proceeds of about $22.5 million. The company's plans for the net proceeds include funding activities related to the acquisition and development of additional products or product candidates.
As Dow Jones notes, the deal follows the company's announcement that the FDA has accepted the new drug application filing for its experimental chemotherapy treatment Exelbine.
Adventrx also has signed a nonbinding term sheet to acquire a private pharmaceutical company with a sickle-cell disease drug candidate. Current discussions with the target company contemplate an all-stock acquisition by merger. If the transaction goes through, Adventrx expects to conduct a Phase III trial of the TPC for the treatment of sickle cell crisis, according to a company statement. The company anticipates that the out-of-pocket cost to submit an NDA covering the TPC would be approximately $15 million to $25 million over three years.