Gentium raises $47.5 million in offering

Italy-based biopharmaceutical company Gentium SpA has entered into definitive agreements for a $47.5 million private placement of 2,354,000 of its American Depository Shares at a price of $20.17 per ADS. Investors participating in the financing are large US and Italian institutional investors. ThinkEquity Partners acted as the exclusive placement agent for the offering.

The net proceeds will be used to fund the continued development of the company's product candidates, for the repurchase of certain marketing rights to defibrotide from Crinos SpA, as previously announced, and for other general corporate purposes.

Laura Ferro, Gentium's chief executive said: "this financing strengthens our balance sheet and allows us to continue development of defibrotide to treat and prevent VOD [veno-occlusive disease] 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."