BEVERLY, Mass., Sept. 11, 2017 (GLOBE NEWSWIRE) -- Innovation Pharmaceuticals Inc., (OTCQB:IPIX), a clinical stage biopharmaceutical company, today announces that the Company has entered into a new $30 million common stock purchase agreement with Aspire Capital Fund, LLC (“Aspire”). Under the agreement, Aspire has committed to purchase over the next three years up to an additional $30 million of IPIX common stock based on the prevailing market prices at the time of each sale. The timing of the purchases will be at the sole discretion of Innovation Pharmaceuticals.
“We are thrilled to again extend our long-term funding relationship with Innovation Pharmaceuticals,” said Steven G. Martin, Managing Member of Aspire Capital. “We have invested $50 million in the Company in previous transactions. In that time, the Company has made tremendous progress, growing from a single drug candidate in one early clinical trial at the start of our relationship to now three drug candidates in mid- or late-stage development. Aspire Capital is extremely confident in this Company and its management team. We are very excited about the additional funding we can provide the Company under the new transaction. We believe that this additional funding will help the Company unlock tremendous value in its programs in the coming months and years.”
“For many years now, Aspire has been a tremendous institutional investor and financial partner to our Company and many of our successes to date are underscored by their unwavering support,” commented Leo Ehrlich, Chief Executive Officer at Innovation Pharmaceuticals. “Aspire’s new $30 million commitment combined with our cash on hand puts us in a strong financial position to continue our aggressive drug development strategies.”
Separately, the Company has filed all requisite documentation with the U.S. Securities and Exchange Commission (“SEC”) as part of a $75 million shelf registration. Additional information on the equity agreement with Aspire and the shelf registration is available in the Company’s filings with the SEC.
Management intends to use any future capital raised through these mediums for advancing the Company’s pipeline of clinical stage drugs and for general corporate expenses.
“While we work towards partnering, we intend to maintain the momentum of our clinical trials for all of our drug candidates. No assurances of trial outcomes can ever be made, but we must be financially aligned for Phase 3 studies of Prurisol for psoriasis and Brilacidin-OM for oral mucositis should the data be appropriately supportive, given the fact that the mid-stage trials are expected to be completed next quarter,” commented Arthur P. Bertolino, MD, PhD, MBA, President and Chief Medical Officer at Innovation Pharmaceuticals.
Dr. Bertolino continued, “Furthermore, we are receiving significant interest in Brilacidin for inflammatory bowel disease following the successful completion of the Phase 2 proof-of concept study of Brilacidin for ulcerative proctitis/ulcerative proctosigmoiditis. Ongoing dialogue under confidentiality agreements has us planning for additional studies on that front. In addition, our ongoing Phase 2a study of Kevetrin for ovarian cancer should produce the first interim data during the fourth quarter as well. In aggregate and individually, we are addressing massive market opportunities and are committed to our vision to develop new medications for those in need.”
About the Company
Headquartered in Beverly, Massachusetts, Innovation Pharmaceuticals Inc. (IPI) is publicly-traded under the company symbol “IPIX”. The Company is clinical stage biopharmaceutical company developing innovative therapies in multiple diseases. The Company believes it has a world-class portfolio of first-in-class lead drug candidates and is now advancing them toward market approval, while actively seeking strategic partnerships. The Company’s Psoriasis drug candidate Prurisol completed a Phase 2 trial and a Phase 2b study is ongoing. Prurisol is a small molecule that acts through immune modulation and PRINS reduction. The Company’s anti-cancer drug Kevetrin successfully concluded a Phase 1 clinical trial at Harvard Cancer Centers’ Dana Farber Cancer Institute and Beth Israel Deaconess Medical Center, and the Company has commenced a Phase 2 study in Ovarian Cancer. In the laboratory, Kevetrin has been shown to modulate p53, often referred to as the “Guardian Angel Gene” due to its crucial role in controlling cell mutations. Brilacidin, a defensin mimetic compound, has shown in an animal model to reduce the occurrence of severe ulcerative Oral Mucositis (OM) by more than 94% compared to placebo. The Company is in a Phase 2 clinical trial with its novel compound Brilacidin-OM for the prevention of OM in patients with Head and Neck Cancer; interim results have shown a marked reduction in the incidence of severe OM (WHO Grade ? 3). The Company’s lead antibiotic, Brilacidin, has completed a Phase 2b trial for Acute Bacterial Skin and Skin Structure Infection, or ABSSSI. Top-line data have shown a single dose of Brilacidin to deliver comparable clinical outcomes to the FDA-approved seven-day dosing regimen of daptomycin. Brilacidin has the potential to be a single-dose therapy for certain multi-drug resistant bacteria (“superbugs”). Topline results are now available for the Phase 2, open label Proof-of-Concept trial, treating patients with Brilacidin for Ulcerative Proctitis/Ulcerative Proctosigmoiditis (UP/UPS), two types of Inflammatory Bowel Disease (IBD). The Company has formed research collaborations with world-renowned research institutions in the United States and Europe, including MD Anderson Cancer Center, Beth Israel Deaconess Medical Center, and the University of Bologna. More information is available on the Company website at www.IPharmInc.com.