Gentium raises $22.1M to progress pipeline

Como, Italy-based Gentium SpA says that it has entered into definitive agreements for a $22.1 million private placement of 1,943,525 of its American Depository Shares at a price of $11.39 each. Investors in the financing will also receive warrants to purchase 388,705 ADSs at an exercise price of $14.50 per ADS. Investors participating in the financing are large US and Italian institutional investors. ThinkEquity Partners acted as the lead placement agent and Rodman & Renshaw and I-Bankers Securities were the co-agents.

The net proceeds from the offering will be used to fund the continued development of the company's product candidates and for general corporate purposes. "This financing strengthens our balance sheet and allows us to continue development of Defibrotide to prevent veno-occlusive disease (VOD) and to treat multiple myeloma. In addition, it gives us the capital to negotiate new drug development and licensing agreements from a position of strength. We are pleased with the support shown by some of our existing shareholders as well as by the enthusiasm of a number of new, recognized biotech investors who participated in this financing."