ZIOPHARM raises $37M in private placing

New York, USA-based ZIOPHARM Oncology has completed a private placement of approximately eight million shares of its common stock with gross proceeds of about $37.0 million. Investors will also receive warrants to purchase around an additional 2.4 million shares of common stock. New investors include ProQuest Investments, LB I Group (an affiliate of Lehman Brothers), Emerging Technology Partners, Knott Partners, Panacea Asset Management and Cycad Group from the USA, Henderson Global Investors from the UK and two funds (Medical Biohealth Trends, VCH Expert Biotech) advised by Medical Strategy from Germany. Existing investors in the company's previous rounds of financing also participated in the private placement.

"With this financial milestone we are able to continue to develop efficiently our current, and newly identified, product candidates for better cancer therapies," said Jonathan Lewis, chief executive, adding: "the strong demand from investors resulted in an oversubscribed financing. The support of investors with notable experience and success in the biotechnology industry is greatly appreciated."

Proceeds from the financing will be used primarily for the clinical development of the company's two lead products, ZIO-101 and ZIO-201, currently in Phase I/II trials for advanced myeloma and advanced sarcoma, respectively. ZIOPARM says it expects to begin additional Phase II evaluations for both products this year, leading to pivotal registration studies in 2007.