CollaGenex Closes $7.5 Million Equity Financing.NEWTOWN, Pa.--(BUSINESS WIRE)--March 13, 2001 CollaGenex Pharmaceuticals, Inc. (Nasdaq:CGPI CGPI Corporate Goods Price Index (Japan) CGPI Capital Goods Price Index (New Zealand) ) today announced that it had closed a $7.5 million equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. to fund the expansion of its direct- to-consumer (DTC DTC See: Depository Transfer Check DTC See: Depository Trust Company DTC See Depository Trust Company (DTC). ) advertising campaign for Periostat(R), the Company's lead drug for the treatment of adult periodontitis periodontitis Inflammation of soft tissues around the teeth (see tooth). Poor dental hygiene leads to deposition of bacterial plaque on the teeth below the gum line, irritating and eroding nearby tissues. , and to provide additional general working capital. The financing included the sale of 1,500,000 shares of CollaGenex common stock at a price of $5.00 per share plus warrants to purchase an additional 400,000 shares of common stock at $6.00 per share. The Company has agreed to file a registration statement for the common stock, including the shares underlying the warrants, within 30 days. Perseus-Soros BioPharmaceutical Fund, LP led the investor group. Tucker Anthony Sutro Capital Markets served as financial advisor and placement agent in connection with this transaction. "We are extremely pleased to have completed this equity financing quickly and at a market price," said Brian M. Gallagher, chairman, chief executive officer and president of CollaGenex. "This was a strategic financing to fund our DTC campaign, which has significantly accelerated the growth of Periostat prescriptions in the cities where we have been running the campaign, and to provide additional working capital for the company's operations." CollaGenex Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on providing innovative medical therapies to the dental market. The Company's lead product, Periostat, was approved by the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. in September 1998 and is the first and only pharmaceutical to treat periodontal disease Periodontal Disease Definition Periodontal diseases are a group of diseases that affect the tissues that support and anchor the teeth. Left untreated, periodontal disease results in the destruction of the gums, alveolar bone (the part of the jaws where by inhibiting the enzymes that destroy periodontal periodontal /peri·odon·tal/ (per?e-o-don´t'l) 1. pertaining to the periodontal ligament or periodontium. 2. near or around a tooth. per·i·o·don·tal adj. 1. support tissues. In February 2001, the FDA granted marketing approval for a new tablet formulation for Periostat. Periostat is marketed to the dental community by CollaGenex through a professional pharmaceutical sales force composed of approximately 120 sales representatives and managers. Currently, the Company's dental sales force is also marketing Vioxx(R), a Merck & Co. drug that CollaGenex co-promotes for the treatment of acute dental pain, and Denavir(R), a prescription cold sore cold sore: see herpes simplex. medication that the Company co-promotes to dentists under an agreement with Novartis Pharmaceuticals Corporation. Research has shown that the enzyme suppression technology underlying Periostat may also be applicable to other diseases involving destruction of the body's connective tissues, including cancer metastases Metastasis (plural, metastases) A tumor growth or deposit that has spread via lymph or blood to an area of the body remote from the primary tumor. Mentioned in: Malignant Melanoma (Metastat) and a broad range of inflammatory diseases. CollaGenex is developing a series of novel, proprietary compounds known as IMPACS IMPACS Institute for Media, Policy and Civil Society IMPACS Integrated Manufacturing Planning and Control System IMPACS International Message and Packet Switching Service (Inhibitors of Multiple Proteases and Cytokines Cytokines Chemicals made by the cells that act on other cells to stimulate or inhibit their function. Cytokines that stimulate growth are called "growth factors. ) to address these applications. The Company intends to pursue further research and development of these technologies primarily through partnerships with third parties. To receive additional information on the Company, please visit our Web site at www.collagenex.com, which is not a part of this press release. This news release contains forward-looking statements within the meaning of Section 23E of the Securities and Exchange Act of 1934, as amended. Investors are cautioned that forward-looking statements involve risks and uncertainties, which may affect the Company's business and prospects. The Company's business of selling, marketing and developing pharmaceutical products is subject to a number of significant risks, including risks relating to the implementation of the Company's sales and marketing plans for Periostat; risks inherent in research and development activities; risks associated with conducting business in a highly regulated environment and uncertainty relating to clinical trials of products under development, all as discussed in the Company's periodic filings with the US Securities and Exchange Commission. Periostat(R), Metastat(R)and IMPACS(R)are trademarks of CollaGenex Pharmaceuticals, Inc. CollaGenex(R)and Periostat(R)are trademarks of CollaGenex International Limited VIOXX(R)is a trademark of Merck & Co., Inc. Denavir(R)is a trademark of Novartis Pharmaceuticals Corporation |
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