For Immediate Release
PHARMION CORPORATION SECURES $65 MILLION IN PRIVATE FINANCING
December 3, 2001
BOULDER, CO, -- Pharmion Corporation, a global specialty pharmaceutical company, today announced that it has raised $65 million in mezzanine financing. Nomura International's Private Equity Group, based in London, led the round, which also included investments from New Enterprise Associates, Bay City Capital Fund III, Proquest Investments, NeoMed Management, Invemed Fund, HealthCap, Merlin BioMed Private Equity Fund, and Montagu Newhall. The company's first round investors -- Domain, Versant Ventures, Aberdare Ventures, Abingworth Management, and Pharmion management -- also invested in this round.
Bay City Capital BD LLC acted as an advisor to the company for the private placement.
The private placement is Pharmion's second since it was established in January, 2000. The $65 million of additional funding will be applied to furthering the company's global infrastructure for regulatory affairs, sales and marketing to support the registration and launch of its first two products.
Pharmion recently signed agreements with Celgene Corporation to expand internationally the THALOMID® (thalidomide) franchise. Under the terms of the agreements, Celgene has granted Pharmion exclusive licenses to its intellectual property covering thalidomide and S.T.E.P.S.® (System for Thalidomide Education and Prescribing Safety) as well as to preclinical and clinical data necessary to support international regulatory filings for THALOMID in exchange for licensing payments and royalties. Pharmion initially plans to file for regulatory approval for the treatment of refractory multiple myeloma and for erythema nodosum leprosum (ENL) in Europe and Australia in 2002, followed by additional international markets.
Celgene has retained the rights for THALOMID in North America, China, Japan, Korea, and Taiwan.
In June 2001, Pharmion acquired from Pharmacia Corporation global rights to develop and commercialize 5-Azacitidine, a drug that has been studied for the treatment of myelodysplastic syndromes (MDS). Myelodysplastic syndromes are bone marrow disorders characterized by the production of abnormally functioning blood cells. As a result, patients with MDS have a high incidence of mortality due to bleeding, infection, and development of acute leukemia. There are currently no approved therapies for MDS. 5-Azacitidine is the subject of a completed Phase III trial in MDS. Pharmion plans to file a New Drug Application (NDA) in the United States for 5-Azacitidine in 2002 and is planning regulatory submissions in Europe and other international markets. Pharmion plans to market the drug globally and will pay royalties on its sales to Pharmacia.
"This financing puts Pharmion in a strong position to register and launch our first two products," stated Patrick J. Mahaffy, president and chief executive officer of Pharmion. "In clinical trials, both 5-Azacitidine and thalidomide show promise in the treatment of life-threatening diseases, and this new funding will speed the process of bringing these drugs to market. We are also actively pursuing additional products to add to our portfolio."
Denise Pollard-Knight, Head of Healthcare Private Equity at Nomura commented, "Pharmion's management team has strong expertise in late-stage clinical development and in running a global specialist sales and marketing franchise. Within a short space of time, the team has identified and executed two significant product opportunities with the potential for near-term revenues. We are pleased to have led this financing that will support the company's strategy and allow it to pursue new product opportunities."
About Pharmion
Pharmion is a global pharmaceutical company dedicated to licensing and commercializing specialty pharmaceutical products. The company's initial focus is on hematology and oncology products. By pursuing products in complementary specialty areas, Pharmion is able to leverage the skills of highly trained employees, and networks of scientific experts, professional associations, and patient organizations.
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