Sunesis Pharmaceuticals Announces $45 Million Private Placement
March 17 2006 - 8:12AM
PR Newswire (US)
SOUTH SAN FRANCISCO, Calif., March 17 /PRNewswire-FirstCall/ --
Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS), a clinical-stage
biopharmaceutical company focused on the discovery, development and
commercialization of novel small molecule therapeutics, today
announced that the Company has entered into a definitive agreement
to raise approximately $45 million in a private placement of
approximately 7.25 million shares of common stock and warrants to
purchase an additional approximately 2.17 million shares of common
stock. The purchase price for the shares and the exercise price for
the warrants will be $6.21 per share, the closing bid price for the
Company's common stock immediately preceding execution of the
definitive agreement for the transaction. Investors in the
financing will pay an additional purchase price equal to $0.125 for
each share underlying the warrants. The closing of the private
placement is subject to certain closing conditions. Participants in
the transaction include funds managed by Alta Partners, Deerfield
Management, Baker Brothers Investments, existing investor Warburg
Pincus LLC and several other institutional investors. Cowen &
Co., LLC acted as the exclusive placement agent on this
transaction. Sunesis intends to use the net proceeds from the
transaction to fund clinical development of its oncology product
candidates, including: -- Phase II clinical trials in non-small
cell and small-cell lung cancer and ovarian cancer, and Phase I and
Phase II clinical trials in acute leukemias with SNS-595, a novel
cell-cycle inhibitor; -- a Phase I/II clinical trial in advanced
solid tumors and a Phase I trial in B-cell malignancies with
SNS-032, a CDK inhibitor; and -- the filing of an investigational
new drug application (IND) and a Phase I clinical trial with
SNS-314, an Aurora kinase inhibitor. Sunesis also plans to use a
portion of the net proceeds for advancement of its preclinical
research pipeline candidates and for general corporate purposes.
"With this financing, we have over $90 million in cash, cash
equivalents and marketable securities on a pro forma basis as of
December 31, 2005. With these financial resources, we can execute
our clinical development plans with confidence. In 2006, Sunesis
will advance six ongoing and planned clinical trials for our three
lead oncology programs," said Daniel N. Swisher, President and
Chief Executive Officer at Sunesis. "We are pleased with the
quality of the new investors we were able to attract to this
offering and we also wish to thank our current investors for their
continued support," continued Mr. Swisher. The shares of common
stock and warrants to be sold by the Company in this private
placement have not been registered under the Securities Act of 1933
or state securities laws, and may not be offered or sold in the
United States without registration with the Securities and Exchange
Commission (SEC) or an applicable exemption from registration
requirements. The Company has agreed to file a registration
statement with the SEC covering the resale of the shares of common
stock and the shares issuable upon exercise of the warrants. This
notice shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of these securities in
any state in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the
securities laws of such state. About Sunesis Pharmaceuticals
Sunesis is a clinical-stage biopharmaceutical company focused on
the discovery, development and commercialization of novel small
molecule therapeutics for oncology and other serious diseases.
Sunesis has built a broad product candidate portfolio through
internal discovery and in-licensing of novel cancer therapeutics.
Sunesis is advancing its product candidates through in-house
research and development efforts and strategic collaborations with
leading pharmaceutical and biopharmaceutical companies. For further
information on Sunesis Pharmaceuticals, please visit
http://www.sunesis.com/ . Safe Harbor Statement This press release
contains forward-looking statements that involve substantial risks
and uncertainties. Sunesis may not actually achieve the plans,
intentions or expectations contained in such forward-looking
statements. Actual results or events could differ materially from
the plans, intentions and expectations contained in such
forward-looking statements. Sunesis does not assume any obligation
to update any such forward-looking statements. DATASOURCE: Sunesis
Pharmaceuticals, Inc. CONTACT: investors, Eric Bjerkholt, CFO of
Sunesis Pharmaceuticals, Inc., +1-650-266-3717; or media, Karen L.
Bergman, +1-650-575-1509, or Michelle Corral, +1-415-794-8662, both
of BCC Partners, for Sunesis Pharmaceuticals, Inc. Web site:
http://www.sunesis.com/
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