Celator raises $40M to support its liposomal cancer candidate

Blood cells

Ewing, NJ's Celator Pharmaceuticals has raised $40.6 million by issuing 4.6 million additional shares of the company's common stock for $9.50 a share. That included 600,000 shares issued because the underwriters' exercised their option to sell additional shares.

The small cap, with a market share of $460 million, said it will use the proceeds to further develop, manufacture and commercialize its Phase III liposomal candidate to treat acute myeloid leukemia, dubbed Vyxeos.

Overall survival data from the 300-person Phase III clinical trial was very positive, as described by FierceBiotech in March. Patients in the treatment arm posted a median survival rate of 9.56 months, besting the 5.95 months observed in the control group, sending the stock up by around 300%.

Whitepaper Download

Reducing the Complexity and Costs of Channel Planning and Logistics

How can you make the process of bringing your product to market less complex while also reducing costs? This Whitepaper identifies opportunities to simplify channel strategies for biopharma companies, their customers and patients. Discover how you can deliver savings and innovation to your business.

It compared intravenous Vyxeos to the standard of care, in which intravenous cytarabine and daunorubicin are administered independently of each other.

Celator's nanoscale liposomes carry cytarabine and daunorubicin at their optimal 5:1 ratio. Once inside the cell, the nanoparticle remains intact, maintaining the synergistic ratio of the two drugs as they escape from the carrier, and reducing degradation, according to the company website.

According to the offering's prospectus, Celator aims to file for an NDA in Q3 2016, with hopes of FDA approval in mid-2017.

- read the release
- here's the prospectus

Suggested Articles

Purdue's reformulated OxyContin may stop patients from snorting or injecting the drug, but it doesn't curb abuse overall, an FDA panel determined.

Roche is gearing up to launch an eye implant to make its Lucentis AMD drug easier to use. But the drugmaker has even bigger plans for the device.

Delivery specialist IntelGenx struck two deals to develop oral films for prescription psychedelics this summer with Canada's Cybin and ATAI.