BUFFALO, N.Y. and HONG KONG, March 4, 2014 /PRNewswire/ -- Kinex Pharmaceuticals announced today the successful completion of an oversubscribed USD $40 million private placement of equity which was completed on February 28, 2014. Proceeds from this round, coupled with cash on hand, will be used to fund the completion of the commercialization of its oral form of paclitaxel (Oraxol) and irinotecan (Oratecan) in select markets outside of the United States. In addition, the proceeds will fund mid-stage clinical trials in the United States of four of eight Kinex drug candidates.
Mr. Flint Besecker, Kinex Board Director and Chief Business Officer commented "As we spoke with both prospective and existing investors it was clear to both me and Dr. Johnson Lau, that our unique global drug development business model, our innovative oral oncology drug pipeline and our current business strategy were all well received. Unfortunately, we were not able to accommodate all investment subscriptions received but we will likely seek another equity capital markets solution after certain clinical data are released later this year and next year." The investors in this round included a blend of institutional investors, healthcare professionals from three continents, and existing investors. Currently, the Kinex equity capital raised over the past 7 years is comprised of 47% from North America and 53% from outside North America. In this current round, 85% of the capital was generated from outside of North America.
Mr. Charles Lannon, Kinex Board Vice Chairman stated: "Obviously the Kinex Leadership Team has generated substantial momentum for the Company. We have a very unique leadership team for a Company our size. It includes a group of very seasoned business and drug development professionals who have track records creating shareholder value across multiple continents."
Dr. Rudolf Kwan, Chief Medical Officer of Kinex stated "Our priority in the clinic development includes a mix of lower risk strategies in certain markets outside of the United States and a value optimization strategy within the larger global markets including the United States. We believe as we successfully commercialize our oral oncology pipeline, the entire global market will grow as more patients will be able to benefit from improved dosing and access to these drugs."
No investment bankers or advisors represented the Company for this offering and Waller Law Firm provided legal representation to Kinex during the Private Placement Process.
Founded in 2002, Kinex is a global biotechnology company focused on the development and commercialization of next generation oral therapies for cancer and immunomodulatory diseases. The company is dedicated to delivering innovative drugs that can have a life-changing impact on patients. Through our consistent investment in research and clinical development, we, and our network of regional partners, are developing two important drug platforms that address unmet medical needs and focus on critical factors that can improve outcomes. It is Kinex's goal to have our oral oncology treatment and maintenance platform as well as our breakthrough drug candidates help patients prevail over their disease. For more information, please visit www.kinexpharma.com
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SOURCE Kinex Pharmaceuticals