Hana Biosciences Receives $30 Million Funding Commitment
SOUTH SAN FRANCISCO, Calif. -- Hana Biosciences, a biopharmaceutical company focused on strengthening the foundation of cancer care, today announced that Deerfield Management, a leading healthcare investment fund, has committed up to $30 million in funding, including $7.5 million upfront, to assist with financing the development of the companyâ€™s pipeline of product candidates. Hana Biosciences is currently advancing two anti-cancer compounds through clinical trials, with additional therapeutic product candidates and an oncology supportive care product in late-stage preclinical development.
â€œThis financing commitment provides us the resources to advance our pipeline of product candidates through the next stages of development and potential value formation,â€ said Steven R. Deitcher, M.D., President and Chief Executive Officer of Hana Biosciences. â€œWe are aligned with respect to Hanaâ€™s pipeline potential, development strategy and future goals. We are focused on product development and dedicated to the steady growth of the company over the next several years.â€
"In addition to Hana's clinical-stage programs, we believe that menadione represents an exciting opportunity in the treatment of one of the most common adverse events of modern biologic therapy," said Howard Furst, M.D., a Partner at Deerfield Management. "We believe that this type of financing vehicle will work well for the company in that it provides funds as needed, and recognizes concrete program milestones and development progress, while creating minimal dilution relative to the company's market capitalization and resource requirements."
Deerfield's commitment of up to $30 million is in the form of an interest-bearing loan that can be drawn down at pre-determined intervals over a three-year period. Hana will immediately draw down $7.5 million. The availability of one-third of the $30 million is subject to the achievement of specific milestones associated with the development of the companyâ€™s Marqibo and menadione product candidates. The outstanding principal and interest, which accrues at the rate of 9.85 percent per annum, is due by October 2013. Deerfield received a one-time 3.5 percent cash commitment fee and six-year warrants to purchase approximately 5.2 million shares of Hanaâ€™s common stock upon execution of the loan agreement at an exercise price of $1.31 per share, the closing bid price on October 30, 2007. Additional warrants will be issuable if the company draws down the portion of the loan facility subject to milestones. The warrants are subject to certain anti-dilution features.
â€œWe are pleased that one of our top current shareholders has expressed its confidence in our company and assets with this financing. Hana has reached an important juncture in the maturation of our clinical-stage programs, and we believe this financing vehicle offers access to funds while addressing the best interests of our current shareholders,â€ added John Iparraguirre, Vice President, Chief Financial Officer of Hana Biosciences.
About Hana Biosciencesâ€™ Oncology Pipeline
Hana Biosciencesâ€™ oncology pipeline consists of four therapeutics and one supportive care compound. The company is currently conducting a registration-enabling program for its lead compound, MarqiboÂ® (vincristine sulfate injection, OPTISOMEâ„¢), in relapsed acute lymphoblastic leukemia (ALL). Hana plans to advance Marqibo into uveal melanoma this year, and expects to initiate a Phase 3 clinical trial in first-line ALL in 2008. The company also has an ongoing Phase 1 clinical trial with Alocrestâ„¢ (vinorelbine tartrate injection, OPTISOMEâ„¢) and plans to commence a Phase 1 clinical trial with Brakivaâ„¢ (topotecan hydrochloride injection, OPTISOMEâ„¢) this year. For Menadione, Hanaâ€™s supportive care product candidate, the company plans to submit an Investigational New Drug application to the U.S. Food and Drug Administration by the end of the year.
About Hana Biosciences, Inc.
Hana Biosciences, Inc. (NASDAQ:HNAB - News) is a South San Francisco, CA-based biopharmaceutical company focused on acquiring, developing, and commercializing innovative products to advance cancer care. The company is committed to creating value by building a best in-class team, accelerating the development of lead product candidates, expanding its pipeline by being the alliance partner of choice, and nurturing a unique company culture. Additional information on Hana Biosciences can be found at www.hanabiosciences.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as ``anticipates,'' ``expects,'' ``plans,'' ``believes,'' ``intends,'' and similar words or phrases. These forward-looking statements include without limitation, statements regarding the availability of a portion of the loan commitment from Deerfield, our ability to repay the funds borrowed from Deerfield, the timing, progress and anticipated results of the clinical development, regulatory processes, potential clinical trial initiations, potential IND and NDA filings and commercialization efforts of Hana's product candidates. Such statements involve risks and uncertainties that could cause Hana's actual results to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties, which could cause actual outcomes and results to differ materially from these statements. Among other things, there can be no assurances that any of Hana's development efforts relating to its other product candidates will be successful, that Hana will be able to obtain regulatory approval of any of its product candidates, and that the results of clinical trials will support Hana's claims or beliefs concerning the effectiveness of its product candidates. Additional risks that may affect such forward-looking statements include Hana's need to raise additional capital to fund its product development programs to completion, Hana's reliance on third-party researchers to develop its product candidates, and its lack of experience in developing and commercializing pharmaceutical products. Additional risks are described in the company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 filed with the Securities and Exchange Commission. Hana assumes no obligation to update these statements, except as required by law.