NEW YORK (GenomeWeb) – RXi Pharmaceuticals this week announced that it has signed a deal under which investment firm Lincoln Park Capital Fund has agreed to buy up to $20 million worth of RXi shares over the next 30 months.
Under the arrangement, Lincoln Park has already purchased 500,000 shares of RXi at $4 apiece for an initial investment of $2 million.
Upon RXi's filing of an investigational new drug application for its first ophthalmology product candidate, Lincoln Park will buy another $1 million in RXi stock at the prevailing market price. In addition to its Phase II anti-scarring drug RXI-109, company has treatments for macular degeneration and retinoblastoma in preclinical testing.
RXi also has the option to sell, at its sole discretion, an additional $17 million in stock to Lincoln Park over the term of the agreement.
The deal with RXi marks Lincoln Park's latest investment in the RNAi space. As reported by Gene Silencing News, the firm has also provided funding to Arrowhead Research, Marina Biotech, and Bio-Path.