Business Wire - November 19, 1998
The common stock will be sold at a price of $1.50 per share which reflects the 30 day trading average of the common stock at the time the terms were agreed upon. Proceeds from the offering will be used to fund the planning and pre-market activities for SP-303/Provir(TM), the company's product candidate currently being evaluated in a Phase III clinical trial for the treatment of diarrhea in people with AIDS; for development of other watery diarrhea indications; for diabetes research; and for further development of nikkomycin Z, the company's antifungal compound.
Enrollment of a Phase III clinical trial for SP-303/Provir for the treatment of diarrhea in people with AIDS was completed in August 1998, one month ahead of schedule and 25% over enrolled. The company has received "fast-track" designation for this first indication in people with AIDS and is moving toward an NDA filing in the first quarter of 1999.
In conjunction with the offering, the company has committed for charitable use within the HIV/AIDS Community a 3.6% royalty on future U.S. product net sales of SP-303/Provir for the treatment of diarrhea in people with AIDS. These funds will comprise the Shaman HIV Investment Trust.
Funds from the Trust will be distributed to qualified organizations providing services, education, and/or research within the HIV/AIDS Community. The funds will be administered by an independent third party, in the form of an Advisory Committee made up of HIV/AIDS Community members.
The royalty will be calculated at the rate of 1% of net sales of SP-303/Provir in the U.S. HIV/AIDS market for every $2.0 million investment in common stock sold in the current offering. The royalty will continue for five years from the first sale of SP-303/Provir in the U.S., a market Shaman intends to commercialize independently.
Investors in the new offering include institutions and individuals known for their commitment to the HIV/AIDS Community, including Vulcan Ventures, representing Paul Allen, Monte Vista Management Company, representing the Goldman Family, the Odyssey Fund at Rockefeller & Company, and Kathleen Scutchfield, co-founder of Until There's A Cure.
"At Shaman, reciprocity has been part of our culture from the beginning, from working with indigenous people in the rain forest, to our work now in the HIV/AIDS community. We believe this intersection of investment and philanthropy allows the Company to further 'invest' in the Community while creating a new model for other companies to follow," remarked Lisa Conte, president and CEO.
"We believe this is the first time a company has made this type of commitment, up-front, prior to their product being available on the market."
The registration statement relating to these securities has been filed with the SEC, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.
This announcement shall not constitute an offer to sell or the solicitation of an offer to buy or sell nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.
Shaman Pharmaceuticals discovers and develops novel pharmaceutical products for major human diseases by isolating active compounds from tropical plants with a history of medicinal use. The company has three compounds in clinical development: SP-303/Provir(TM), an oral product for the treatment of diarrhea in people with AIDS, and other watery diarrhea indications; nikkomycin Z, an oral antifungal for the treatment of systemic fungal infections; and SP-134101, an oral product for the treatment of Type II diabetes. Shaman maintains an active Type II diabetes research program which serves as the basis for its collaboration with Lipha S.A., a wholly-owned subsidiary of Merck KGaA, Darmstadt, Germany.
Note to Editors: Provir(TM) is a trademark of Shaman Pharmaceuticals, Inc.
This press release contains, among other things, certain statements of a forward-looking nature relating to Shaman's ability to advance its clinical development and research programs and obtain regulatory review and approval thereof. Such statements involve a number of risks and uncertainties including the timing and results of preclinical and clinical studies and determinations by the U.S. Food and Drug Administration, as well as the Risk Factors listed in the company's SEC filings including, but not limited to, those contained in Shaman Pharmaceuticals, Inc.'s Annual Report on Form 10-K/A for the fiscal year ended Dec. 31, 1997. These filings are available upon request at 650/952-7070. Also, visit Shaman at http://www.shaman.com.
-30--pw/sf* mr/sf
CONTACT: Shaman Pharmaceuticals, Inc. Linda Mannion, 650/952-7070 ext. 485
981119
BW981104
Copyright © 1998 - Business Wire. All rights reserved. Reproduced with permission. Reproduction of this article (other than one copy for personal reference) must be cleared through the Business Wire, Permissions Desk, Business Wire, 1185 Avenue of the Americas, 3rd Floor, New York, NY 10036; Tel: (212) 575-8822; FAX: (212) 575-1854. http://www.businesswire.com.
AEGiS is a 501(c)3, not-for-profit, tax-exempt, educational corporation. AEGiS is made possible through unrestricted funding from Broadway Cares/Equity Fights AIDS, Elton John AIDS Foundation, the National Library of Medicine, Pacific Life Foundation and donations from users like you.
Always watch for outdated information. This article first appeared in 1998. This material is designed to support, not replace, the relationship that exists between you and your doctor.
AEGiS presents published material, reprinted with permission and neither endorses nor opposes any material. All information contained on this website, including information relating to health conditions, products, and treatments, is for informational purposes only. It is often presented in summary or aggregate form. It is not meant to be a substitute for the advice provided by your own physician or other medical professionals. Always discuss treatment options with a doctor who specializes in treating HIV.
Copyright ©1980, 1998. AEGiS. All materials appearing on AEGiS are protected by copyright as a collective work or compilation under U.S. copyright and other laws and are the property of AEGiS, or the party credited as the provider of the content. .