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VIVUS to Raise $33.6 Million in Registered Direct Offering of Common Stock
11/20/2006
Mountain View, CA - VIVUS, Inc. (Nasdaq: VVUS), a pharmaceutical company
dedicated to the development and commercialization of novel therapeutic products
addressing obesity and sexual health, today announced that it has entered into a
securities purchase agreement with several institutional investors for the sale
of its common stock in a registered direct offering. Proceeds from the offering
will be approximately $33.6 million. Under the terms of the financing, VIVUS
will sell 9,600,000 shares of VIVUS common stock at a price of $3.50 per share.
The shares were priced at market based on a three-day trailing average closing
price. All of the shares of common stock are being offered pursuant to an
effective Registration Statement on Form S-3 previously filed with the
Securities and Exchange Commission.
Caxton Advantage Life Sciences Fund, L.P., led the financing. Also
participating were new and existing investors, including Euclid SR Partners,
OrbiMed Advisors LLC, Franklin Templeton Investments and Quogue Capital LLC.
VIVUS intends to use the proceeds from the financing for general corporate
purposes and to fund clinical trials of our product candidates, including the
advancement of the clinical program for Qnexa(TM) for the treatment of obesity.
"Obesity represents a large and growing market with significant opportunity
to improve patient health benefits. We believe the landscape for obesity
treatment is currently evolving and combination therapies stand to play an
important role in the future," stated Eric Roberts, Managing Director of Caxton
Advantage Venture Partners.
"We are pleased to add these high quality institutional private equity and
venture funds as shareholders," stated Leland F. Wilson, president and CEO of
VIVUS. "The support of our new and existing investors will facilitate the
clinical programs that are required to move each of our Phase 3-ready programs
toward commercialization."
About VIVUS
VIVUS, Inc. is a pharmaceutical company dedicated to the
development and commercialization of next-generation therapeutic products
addressing obesity and sexual health. VIVUS has three products that are
positioned to enter Phase 3 clinical trials, and one product currently under NDA
review by the FDA. The investigational pipeline includes: Qnexa(TM), for which a
Phase 2 study has been completed for the treatment of obesity; Testosterone
MDTS(R), for which a Phase 2 study has been completed for the treatment of
Hypoactive Sexual Desire Disorder (HSDD); EvaMist(TM), for which a Phase 3 study
has been completed and an NDA submitted for the treatment of menopausal
symptoms; and avanafil, for which a Phase 2 study has been completed for the
treatment of erectile dysfunction (ED). MUSE(R) is approved and currently on the
market for the treatment of ED. For more information on clinical trials and
products, please visit the company's web site at www.vivus.com
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Certain statements in
this press release are forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements may
be identified by the use of forward-looking words such as
"anticipate," "believe," "forecast," "estimated" and "intend," among others. These forward-looking statements are based
on VIVUS' current expectations and actual results could differ materially. There
are a number of factors that could cause actual events
to differ materially from those indicated by such
forward-looking statements. These factors include, but are not limited to, substantial
competition; uncertainties of patent protection and litigation; uncertainties of government or
third party payer reimbursement; reliance on sole source suppliers; limited sales
and marketing efforts and dependence upon third parties; risks related to the
development of innovative products; and risks related to failure to
obtain FDA clearances or approvals and noncompliance with FDA
regulations. As with any pharmaceutical under development, there are significant risks in the development,
regulatory approval and commercialization of new products. There are no guarantees that the EvaMist NDA
submission will be filed with the FDA for substantive review, or that it
will be approved in a timely basis, or at all. There are no
guarantees that future clinical studies discussed in this press release will be
completed or successful or that any product will receive regulatory approval
for any indication or prove to be commercially successful. VIVUS does
not undertake an obligation to update or revise any forward-looking statement. Investors should read
the risk factors set forth in VIVUS' Form 10-K for the
year ended December 31, 2005 and periodic reports filed
with the Securities and Exchange Commission.
CONTACT: Timothy E. Morris, Chief Financial Officer of VIVUS, Inc.,
+1-650-934-5200; or Stephanie Diaz of Vida Communication, +1-415-675-7400, for
VIVUS, Inc. |
