Avanir gets $40 to wrap new Phase III for Zenvia

A group of venture firms led by ProQuest Investors is providing Avanir Pharmaceuticals with $40 million to fund a confirmatory late-stage trial of Zenvia and a full response to the FDA's request for more data. Avanir will issue an aggregate of approximately 35 million shares at a price of $1.14 per share unit--the market closing bid price as of March 26, 2008 plus a nominal amount for warrants--with 35 percent warrant coverage. The warrants, which represent the right to acquire up to approximately 12.2 million shares, are exercisable at 125 percent of the offering price and have a 5-year exercise term.

Avanir has had a hard time developing Zenvia, an experimental drug for involuntary emotional expression disorder. The FDA handed the biotech an approvable letter for the drug in late 2006 which outlined a demand for new data on the drug.

- read the press release

ALSO: Germany's Pieris has raised $38 million in its second round of venture financing led by OrbiMed Advisers. Pieris is developing a novel class of targeted human protein therapeutics. Release

PLUS: Durham, NC-based Scynexis has raised $13.5 million from a group of investors that include a lineup of Big Pharma companies. Report

Related Articles:
Avanir shares soar on positive Zenvia data. Report
CEO heads for exit after Avanir stocks plunge. Report
Avanir pockets $10M with AstraZeneca deal. Report
Avanir slashes jobs, puts Zenvia on ice. Report
Avanir slashes costs as it mulls asset sale. Report

Suggested Articles

Janssen’s BCMA-targeting CAR-T therapy eliminated tumors in 69% of patients with advanced multiple myeloma in a small phase 1 study.

In a study, BMS' CAR-T therapy banished tumors in more than half and shrank tumors in nearly three-quarters of relapsed blood cancer patients.

Novartis unveiled more data showing how its asthma combo QMF149 fared against the standard of care: a combination of the same types of drugs.