DOR BioPharma plans $4.5 million PIPE; Znomics inks $8 million non-bonding deal with FirstPoint

By Stephanie N. Rotondo

Portland, Ore., Feb. 25 - In a PIPE market led by the pharmaceutical sector, DOR BioPharma Inc. announced Wednesday that it had entered into a $20.5 million partnership agreement with an investor.

The deal includes the sale of $4.5 million common shares. Proceeds from the transaction will be used to further develop and market DOR's orBec drug.

Meanwhile, Znomics Inc. said it had entered into a non-binding agreement to raise up to $8 million through a convertible preferred stock placement. The company said that negotiations regarding terms of the deal were ongoing.

Among other biopharmaceuticals, Israeli Kamada Ltd. said it plans to raise NIS 28.84 million though the sale of stock to its board chairman and another named investor.

St. Barbara Ltd. wrapped up an A$75 million deal, the company said late Tuesday. The company sold more than 189 million shares of its stock, and no warrants were issued.

DOR BioPharma active

DOR BioPharma signed a $20.5 million partnership agreement with Sigma-Tau Pharmaceuticals Inc., the company announced.

The deal includes a $4.5 million private placement of common shares at $0.18 per share.

Proceeds from the equity infusion will be used to develop and market orBec in North America.

"As a result of our longstanding relationship with DOR, we have great confidence in the DOR team, in the pharmacology that orBec has already demonstrated, and in the likelihood of orBec's success in the confirmatory phase 3 clinical program," said Gregg Lapointe, chief executive officer of Sigma-Tau, in a press release. "Oral BDP is also an excellent fit with our current pipeline of transplant/oncology products. We are committed to the success of this collaboration in the development of this important compound."

"We are very pleased to begin this partnership with Sigma-Tau," said Christopher J. Schaber, president and CEO of DOR, in the same statement. "Sigma-Tau's premium investment in DOR shares gives us the cash necessary to complete our upcoming confirmatory phase 3 clinical trial of orBec in GI GVHD.

"This partnership will also provide for the launch and commercialization of orBec in North America, without any further related expense to DOR or its shareholders. It also provides us with the potential for ongoing development funding across multiple indications for orBec and oral BDP."

DOR's stock (OTCBB: DORB) closed up $0.005, or 3.85%, to 13.5 cents. Market capitalization is $19.5 million.

DOR BioPharma is a Miami-based company that develops cancer treatments and treatments for gastrointestinal diseases, as well as vaccines for bioterrorism agents.

Znomics inks deal with FirstPoint

Znomics is planning to raise $8 million through the placement of convertible preferreds, the company said in a filing with the Securities and Exchange Commission.

The Portland, Ore.-based biotechnology firm inked a letter of intent with FirstPoint BioTech Inc, the filing stated. Though terms have not yet been set, the 8% convertible preferreds will be sold in two tranches of $4 million.

Znomics' Kerry D. Rea, chief financial officer, declined to give further details to Prospect News.

"We're being very cautious because it is a non-binding letter," he said.

Proceeds will be used to expand the company's medicinal chemistry program.

Znomics' stock (OTCBB: ZNOM) ended 2 cents, or 50%, better at 6 cents.

Kamada to sell 2.6 million shares

Kamada will sell NIS 28.84 million worth of stock in a registered private placement, according to a press release.

The Rehovot, Israel-based biopharmaceutical company will sell 2.6 million shares to its board chairman, Ralf Hahn, as well as to UDT Med Holdings LLC at NIS 11.00 per share. The deal also includes 40% warrant coverage.

Kamada plans to use funds from the transaction to advance its clinical pipeline.

At market close, Kamada's stock (Pink Sheets: KAMAF) was $9.25.

St. Barbara wraps A$75 million stock sale

St. Barbara completed a A$75 million private placement of stock, the company announced late Tuesday.

The Melbourne, Australia-based gold mining company issued 189.6 million common shares at A$0.41 per share.

Proceeds will be used to buy back some of the company's outstanding convertible debt and to fund later convertible repurchases.

St. Barbara's equity (Australia: SBM) ended the day steady at 39.5 cents.

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