Corautus Genetics Inc. Closes Two Transactions, Triggering $20 Million from Boston Scientific

Strategic Insights -

Corautus Genetics Inc. has closed two previously announced financings, with the second tranche of a $9.85 million private placement of common stock and warrants resulting in net proceeds of $4.7 million, and a $2.5 million convertible debt facility with Boston Scientific Corporation. The closing of both transactions was triggered by the treatment of the first patient in Corautus' Phase IIb clinical trial for "Genetic Angiogenic Stimulation Investigational Study" (GENASIS). The GENASIS trial aims to enroll up to 404 patients with Class III or IV angina in approximately 20 cardiac medical centers in the United States.

Key Takeaways:

  • Corautus Genetics Inc. has closed two previously announced financings, with a total of $7.2 million in proceeds.
  • The closings were triggered by the treatment of the first patient in Corautus' Phase IIb clinical trial, GENASIS.
  • The GENASIS trial has a goal to enroll up to 404 patients with Class III or IV angina.
  • The trial is designed to evaluate the safety and efficacy of Corautus' proprietary VEGF-2 therapeutic for the treatment of severe cardiovascular disease.
  • The company has received $20 million of the $25 million commitment from Boston Scientific Corporation under the loan agreement established in July 2003.
  • Richard E. Otto, President and CEO of Corautus, stated that the proceeds from the transactions have further strengthened the company's cash reserves for the GENASIS trial.
  • The VEGF-2 therapy is a growth factor that promotes the development of supplemental collateral blood vessels, a process known as therapeutic angiogenesis.

Statistics:

  • $9.85 million: total funding from the private placement of common stock and warrants.
  • $2.5 million: convertible debt facility with Boston Scientific Corporation.
  • $20 million: amount received by Corautus from Boston Scientific Corporation under the loan agreement.
  • 404: maximum number of patients to be enrolled in the GENASIS trial.
  • 20: number of cardiac medical centers participating in the GENASIS trial.
  • 2003: year in which Corautus entered into a strategic alliance with Boston Scientific Corporation.

Sources:

  • Press release from Corautus Genetics Inc.
  • Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 001-15833) filed March 30, 2004