BRISBANE, Calif., Feb. 18, 2015 /PRNewswire/ -- Dance Biopharm Inc. (Dance), a privately-held biotechnology company focused on the development of inhaled insulin products to treat diabetes, today announced the completion of a $9.5 million convertible note and warrants financing. SternAegis Ventures, through Aegis Capital Corp., acted as the exclusive placement agent for this offering. Participants in the financing include a syndicate of individual and institutional investors, the majority of whom are focused on the biotechnology and healthcare sectors. The proceeds of the private placement will be used principally to fund human clinical studies, manufacture drug and devices for clinical studies, and for working capital and general corporate purposes.
"This additional capital is important as we continue to prepare for more clinical trials for Dance 501, our inhaled insulin product candidate for diabetes, and we are delighted to have had SternAegis Ventures enable this successful and efficient financing," stated Dr. John Patton, chairman and chief executive officer of Dance.
About Dance 501, a Next-Generation Inhaled Insulin Product
Dance 501 consists of a high purity liquid formulation of recombinant human insulin stored in a dispenser for administration with a small handheld electronic inhaler. The electronic inhaler utilizes a patented vibrating mesh technology, designed to produce consistently sized particles of liquid insulin in the form of a smooth mist, allowing the efficient and consistent delivery of insulin into the lungs in a few comfortable breaths.
Diabetes, a Global Epidemic Affecting an Estimated 382 Million People Worldwide
In its 2013 report, the International Diabetes Federation (IDF), estimated that approximately 382 million people worldwide suffer from diabetes. The IDF further estimated that global health expenditures attributed to the treatment of adult patients with diabetes was $548 billion in 2013. Type 2 diabetes accounts for 85 to 95 percent of all diabetes worldwide. According to the IDF, the number of patients with diabetes is expected to grow to approximately 592 million in less than 25 years. For most patients with diabetes, the disease leads to serious medical complications.
The long-term benefits of mealtime insulin therapy have been consistently demonstrated. Many clinical studies have shown that insulin is not only the most effective therapy for controlling blood glucose, but insulin also preserves pancreatic function to reduce disease progression. Although injected insulin is the gold standard for treatment, traditionally it has been the last drug taken by Type 2 patients. The typical patient delays taking mealtime insulin for five to ten years in order to avoid multiple daily injections. Delaying insulin treatment, or refusing to take injections, eventually results in negative health consequences for the patients and enormous costs to health care systems. Now all of the major diabetes medical associations recommend the introduction of insulin earlier in the treatment process for Type 2 patients and continued use of insulin by Type 1 patients.
About Dance Biopharm Inc.
Dance Biopharm is a privately-held company based in the San Francisco Bay Area focused on the clinical development of inhaled insulin products to treat diabetes patients worldwide. The company began operations in 2010, founded by Dr. John Patton, who has over 25 years of experience developing inhaled insulin and other inhaled therapies. The Dance team consists of experts in all aspects of inhaled insulin development, and the company is dedicated to creating a new generation of products that will allow inhaled insulin to transform the treatment of diabetes. Additional information about Dance Biopharm can be found at www.dancebiopharm.com.
All statements other than statements of historical fact included in this press release are forward-looking statements that are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such statements. We have based these forward-looking statements upon information available to management as of the date of this release and management's expectations and projections about certain future events. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to our limited operating history, our ability to successfully develop Dance 501, the cost and uncertainty of obtaining regulatory approvals, and changes in the competitive or regulatory landscape.
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SOURCE Dance Biopharm