Synthetic Biologics, Inc. (NYSE American: SYN), a late-stage clinical company developing therapeutics that preserve the microbiome to protect and restore the health of patients, announced today the closing of a privately placed stock purchase transaction for the sale of redeemable convertible preferred stock to an affiliate of MSD Partners, L.P. for aggregate gross proceeds of $12 million.
Synthetic Biologics intends to use proceeds from the Preferred Stock transaction for general corporate purposes, including the continued advancement of SYN-004 (ribaxamase), the Company's Breakthrough Therapy Designation drug candidate designed to prevent antibiotic-mediated C. difficileinfection (CDI), overgrowth of pathogenic organisms and the emergence of antimicrobial resistance (AMR) in the gut microbiome.
"We would like to thank MSD Partners, L.P. for their continued support of Synthetic Biologics and our pipeline of novel microbiome-focused clinical programs," said Jeff Riley, President and Chief Executive Officer of Synthetic Biologics. "With proceeds from this transaction, we intend to further advance SYN-004's (ribaxamase) late-stage clinical development and advancement towards commercialization. Our goal remains to create long-term value for all our stakeholders, including the millions of patients who stand to benefit from our innovative approach to protecting the gut microbiome from the adverse effects of antibiotic use."
At closing, Synthetic Biologics issued shares of Preferred Stock, which are convertible into common shares at an initial conversion price of $0.54 per share. Please refer to the Company's Form 8-K which will be filed with the Securities and Exchange Commission on September 12, 2017 for the complete terms of the Preferred Stock transaction.
About Synthetic Biologics, Inc.
Synthetic Biologics, Inc. (NYSE American: SYN) is a late-stage clinical company developing therapeutics designed to preserve the microbiome to protect and restore the health of patients. The Company's lead candidates poised for Phase 3 development are: (1) SYN-004 (ribaxamase) which is designed to protect the gut microbiome from the effects of certain commonly used intravenous (IV) beta-lactam antibiotics for the prevention of C. difficile infection (CDI), overgrowth of pathogenic organisms and the emergence of antimicrobial resistance (AMR), and (2) SYN-010 which is intended to reduce the impact of methane producing organisms in the gut microbiome to treat an underlying cause of irritable bowel syndrome with constipation (IBS-C). The Company is also developing preclinical stage monoclonal antibody therapies for the prevention and treatment of pertussis and novel discovery stage biotherapeutics for the treatment of phenylketonuria (PKU). For more information, please visit Synthetic Biologics' website at www.syntheticbiologics.com.