June 29 /PRNewswire/ -- Myriad Genetics, Inc. (Nasdaq: MYGN - news) announced today that it has received a $24 million equity investment from a European pharmaceutical company. The proceeds will be used to accelerate the development of Myriad's colon cancer therapeutic compounds and to advance the progress of its second generation proteomics technologies.
The investment was made in exchange for 300,000 shares of newly issued common stock in Myriad Genetics, Inc., at a 7.5% discount to the 15-day trailing average stock price. The shares are unregistered and there are no registration rights associated with this transaction.
``We are pleased to have this investment in Myriad Genetics from a leading pharmaceutical company,'' said Peter Meldrum, President and Chief Executive Officer of Myriad Genetics, Inc. ``Their funding is validation of Myriad's strategy for continued leadership in product development through application of its proteomic technologies.''
Myriad intends to invest the funds from this financing in expediting the Company's therapeutic product development strategy. Specifically, Myriad intends to move aggressively forward with drug candidate MPI-42511, or a closely related analog, for the treatment of colon cancer. MPI-42511 has been shown to selectively kill human colon cancer cells in vitro. Myriad plans to begin in vivo testing of the colon cancer drug candidate over the summer. MPI-42511 inhibits a key regulator protein in an important colon cancer pathway that is common to approximately 95% of colon cancer cases.
Colon cancer is the second most common cancer killer of men and women in the United States. Over 130,000 Americans will be diagnosed with colorectal cancer this year and 37,000 women will receive a diagnosis of endometrial cancer. Myriad's 40 person oncology product sales force has established a highly visible position within cancer centers and with practicing oncologists, and is well prepared to deliver additional oncology products in the United States.
The transaction was arranged through Friedli Corporate Finance, a leading European financial firm based in Zurich, Switzerland and Swissfirst Bank AG, a public Swiss investment bank.
Myriad Genetics, Inc. is an emerging biopharmaceutical company focused on the development of therapeutic and diagnostic products that are based on the use of genomic and proteomic technologies. The Company has established two wholly owned subsidiaries -- Myriad Pharmaceuticals, Inc., which develops and intends to market therapeutic compounds, and Myriad Genetic Laboratories, Inc., which develops and markets proprietary molecular diagnostic services and has introduced products in the fields of predictive medicine and personalized medicine. The Company has established strategic alliances with Bayer, Eli Lilly, Hitachi, Monsanto, Novartis, Roche, Schering AG and Schering-Plough. |
