EntreMed gains $25 million for work on cancer drugs

Development capital raised through sale of stock, warrants


July 29, 1999|By Kristine Henry | Kristine Henry,SUN STAFF

EntreMed Inc. said yesterday that it raised $25 million to help pay for development of three experimental anti-cancer drugs.

On Tuesday the Rockville-based biotechnology company announced that it had won approval from the Food and Drug Administration to begin testing its Endostatin protein on humans, with trials expected to begin in September.

The $25 million will be used in part for trials of Endostatin, but will largely go toward studying two other anti-cancer drugs that are in a much earlier stage of development.

"Completion of this transaction will reinforce EntreMed's financial strength as we move three lead product candidates into the clinic," said John W. Holaday, EntreMed's chairman, president and chief executive.

The capital was raised by selling an investor group a package of discounted common stock and warrants. Exact terms of the deal were not disclosed.

Founded in 1991, EntreMed has incurred increasing losses since it went public in 1996.

In its last fiscal year the company reported a loss of $13.5 million. For the quarter that ended March 31, the company reported a net loss of $7 million on revenue of $1.4 billion. EntreMed had cash on hand at the end of the quarter of $27.6 million and had spent $9 million over the three months on research and development and administrative expenses.

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.