BioVex completes $70M financing to complete OncoVEX Phase III study

BioVex Inc, a company developing new generation biologics for the treatment and prevention of cancer and infectious disease, announced today that it has concluded a $70 million private financing, raising $30 million in addition to the $40 million announced in March. The proceeds of the financing will primarily be used to complete the ongoing Phase III pivotal study of OncoVEX (GM-CSF) for the treatment of recurrent and metastatic melanoma and to fund pre-commercialization activities.

The second close placement was co-led by Morningside Venture, Ventech and MVM Life Science Partners who were joined by other new investors including Sectoral Asset Management and Ysios Capital Partners. Reenie McCarthy for Morningside, Mounia Chaoui of Ventech and Steve Reeders of MVM Life Science Partners will join the BioVex board of directors.

"Securing this financing is a significant milestone that puts BioVex in a strong financial position to complete its first pivotal study with OncoVEX in metastatic melanoma, with a view to submitting a Biologics License Application filing in mid 2011," said Philip Astley-Sparke, President and CEO of BioVex. "We believe this over-subscribed funding round is the largest for a private clinical stage biotech company this year and is a validation of our clinical and regulatory achievements. We have generated encouraging data in four tumor types and beyond melanoma have agreed to an additional Phase III pivotal protocol with the FDA under the Special Protocol Assessment procedure in head and neck cancer."

"Pending the successful conclusion of its first pivotal study, OncoVEX is positioned to become the first cancer destroying virus to reach the market in the United States," said Steve Reeders of MVM Life Science Partners. "Given the strength of the Phase II data in melanoma, we are optimistic that OncoVEX will meet its primary endpoint in the current Phase III study and that its potential will be realized in melanoma and subsequently many other hard to treat solid tumors."

"We were impressed by the number of durable complete remissions following OncoVEX therapy in both metastatic melanoma and head and neck cancer," said Reenie McCarthy of Morningside. "OncoVEX is an extremely promising treatment for many hard to treat solid tumor types and we look forward to working with management to fully realize the potential of this first-in-class biologic."