|October 30, 2003
|HEMISPHERX BIOPHARMA COMPLETES $ 4,142,357 PRIVATE PLACEMENT
|Third Multi Million Dollar Transaction in Year 2003 to
Further Expand Alferon N Sales Program and Prepare for Ampligen NDA Filing
Philadelphia, PA, Thursday, October 30, 2003: Hemispherx Biopharma, Inc. (AMEX: HEB) announced today that it closed a private placement, with the diligent help of Cardinal Securities, LLC acting as placement agent, to two institutional investors of 6% senior secured convertible debentures due October 31, 2005 in the aggregate principal amount of $4,142,357 and warrants to purchase an amount of shares of Common Stock equal to 20% of the shares issuable upon conversion of the debentures. The debentures may be convertible into Hemispherx common stock at a price equal to the average closing price of the shares over the last twenty trading days, subject to adjustment. The warrants have an exercise price of $2.32, subject to adjustment. The closing price of the stock on October 28 was $2.60.
The net proceeds of this transaction will go toward the further expansion of the Alferon N® Sales Program in the United States. In August the Company announced that it had contracted with Engitech to deploy a sales force of 100 sales representatives within one year in the U.S. domestic market. Within three months, Engitech has already fielded a sales team of close to 40 sales people and is screening others. The continuously growing sales over the last couple of weeks made the Company decide to implement a strategic and tactical marketing action plan, including an extensive scientific and educational program targeting an audience of physicians and consumers.
Furthermore, the funds will be used to finalize the process for the upcoming Ampligen® NDA filing. The Company is in a Phase 3 Clinical Trial for the potential treatment of Chronic Fatigue Syndrome (CFS) with its experimental compound, RNA based Ampligen®. The trial, AMP 516, is expected to finish around year’s end. Ampligen® is the only product currently in Phase 3 Trials for CFS, and the only product for the treatment of CFS for which the FDA has authorized availability on an emergency treatment basis and given “orphan drug” status. The Centers of Disease Control and Prevention (CDC) estimate more than 500,000 people suffer from CFS in the United States.
Hemispherx Biopharma, based in Philadelphia, is a biopharmaceutical company engaged in the manufacture and clinical development of new drug entities for treatment of viral and immune-based chronic disorders. Its flagship products include Alferon and the experimental immunotherapeutics/antivirals Ampligen and Oragens. These novel proteins, approved for a category of STD infection, and experimental nucleic acids are being developed for globally important chronic viral diseases and disorders of the immune system including HPV, HIV, CFS and Hepatitis. Its platform technology includes large and small agent components for potential treatment of various chronic viral infections. Hemispherx has approximately 400 patents comprising its core intellectual property estate, a fully commercialized product (Alferon N) and GMP certified manufacturing facilities for its novel pharma products. For more information please visit www.hemispherx.net.
Hemispherx Biopharma, Inc.,
Dianne Will, Investor Relations
(518) 398-6222, Fax: (518) 398-6369
HEB's Web Site: www.hemispherx.net
Information contained in this news release other than historical information, should be considered forward-looking and is subject to various risk factors and uncertainties. For instance, the strategies and operations of Hemispherx involve risk of competition, changing market conditions, change in laws and regulations affecting these industries and numerous other factors discussed in this release and in the Company's filings with the Securities and Exchange Commission. Any specifically referenced investigational drugs and associated technologies of the company (including AmpligenÒ and Oragensä) are experimental in nature and as such are not designated safe and effective by a regulatory authority for general use and are legally available only through clinical trials with the referenced disorders. The forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking statements. Clinical trials for other potential indications of the approved biologic AlferonÒ do not imply that the product will ever be specifically approved commercially for these other treatment indications including SARS. The Alferon® asset for overseas sales for a category of STD is currently being acquired by the Company as part of a multi-step purchase contract of inventory, intellectual property, commercial licenses and GMP approved facilities, which house the biological operations.