ROCKVILLE, Md., Sept. 17 EntreMed, Inc.(Nasdaq: ENMD), a clinical-stage pharmaceutical company developingtherapeutics for the treatment of cancer and inflammatory diseases, todayannounced that it has completed a $20 million secured loan agreement with asyndicate of lenders led by GE Healthcare Financial Services, and participatedby Merrill Lynch Capital, a division of Merrill Lynch Business FinancialServices Inc., and Oxford Finance Corporation. The full amount of the $20million loan, less fees, was funded at closing.
James S. Burns, EntreMed President and Chief Executive Officer, commentedon the financing, "This transaction provides EntreMed with a non-dilutivefinancing vehicle that strengthens our cash position and will fund anticipatedclinical development expenses into 2009. The loan collateral includesEntreMed's interest in royalty revenues on sales of Celgene's Thalomid(R). Wehave been funded by three leading commercial finance organizations thatspecialize in life science companies, and I am grateful for their confidencein EntreMed."
Mr. Burns further commented, "Proceeds from this transaction will be usedprimarily to support development costs for our ongoing clinical studies withPanzem(R) NCD, MKC-1, and ENMD-1198, and to fund IND-directed activities forPanzem(R) in rheumatoid arthritis and our Aurora-angiogenesis inhibitor inoncology."
EntreMed, Inc. is a clinical-stage pharmaceutical company developingtherapeutic candidates primarily for the treatment of cancer and inflammation.Panzem(R) NCD (2-methoxyestradiol or 2ME2) is currently in multiple Phase 2clinical trials for cancer. MKC-1, an oral cell-cycle regulator, is inmultiple Phase 1 and 2 studies for cancer. ENMD-1198, a novel tubulin-bindingagent, is in Phase 1 studies in advanced cancers. Panzem(R) is also inpreclinical development for rheumatoid arthritis, and ENMD-2076, a dual-actingAurora-angiogenesis inhibitor, is in preclinical development for cancer.EntreMed's goal is to develop and commercialize new compounds based on theCompany's expertise in angiogenesis, cell-cycle regulation and inflammation --processes vital to the treatment of cancer and other diseases, such asrheumatoid arthritis. Additional information about EntreMed is available onthe Company's web site at http://www.entremed.com and in various filings withthe Securities and Exchange Commission.
Forward Looking Statements
This release contains forward-looking statements within the meaning of thePrivate Securities Litigation Reform Act with respect to the outlook forexpectations for future financial or business performance (including thetiming of royalty revenues and future R&D expenditures), strategies,expectations and goals. Forward-looking statements are subject to numerousassumptions, risks and uncertainties, which change over time. Forward-lookingstatements speak only as of the date they are made, and no duty to updateforward-looking statements is assumed. Actual results could differ materiallyfrom those currently anticipated due to a number of factors, including thoseset forth in Securities and Exchange Commission filings under "Risk Factors,"including risks relating to the need for additional capital and theuncertainty of additional funding; variations in actual sales of Thalomid(R),risks associated with the Company's product candidates; the early-stageproducts under development; results in preclinical models are not necessarilyindicative of clinical results, uncertainties relating to preclinical andclinical trials; success in the clinical development of any products;dependence on third parties; future capital needs; and risks relating to thecommercialization, if any, of the Company's proposed products (such asmarketing, safety, regulatory, patent, product liability, supply, competitionand other risks).CONTACT: Ginny Dunn Associate Director, Corporate C