NEW YORK, Aug 6 - Synaptic Pharmaceutical of Paramus, NJ, said it planned to raise $41 million in two stages of private financing.
Under the terms of the deal, investment firm Warburg Pincus has agreed to purchase 2.2 million series B preferred shares representing 19.9 percent of the company’s stock for $9.4 million. Warburg Pincus has also agreed to purchase additional convertible shares valued at $31.6 million in a second tranche combining series B and C preferred stock.
The preferred B stock can be converted at $4.34 a share while preferred C stock has a conversion price of $5.97 a share. Upon completing the second round, Synaptic will have issued an additional 7.6 million common shares at an average price of $5.42 per share.
The company will use the funding to further develop its G protein-coupled receptor technology.
"As a leading drug discovery company utilizing G protein-coupled receptors as targets for novel therapeutics, Synaptic has a unique platform technology and a valuable intellectual property estate," Jonathan Leff, managing director of Warburg Pincus, said in a statement.
Leff and Stewart Hen, a Warburg Pincus vice president, will take up seats on Synaptic's board of directors following the financing.
Synaptic uses its GPCR targets to design drugs and to map biological pathways. The company has deals with Grunenthal to discover pain killers and with Kissei Pharmaceutical to identify novel G protein-coupled receptors.