In its second major financing since its founding in 2002, Bionovo Inc. brought in $15.7 million in a private investment round to support clinical development of its lead compounds in cancer and women's health.

San Diego-based RA Capital participated in the round, along with New York-based Paramount BioCapital Asset Management, Avon, Conn.-based Ironwood Capital and a group of new and existing private shareholders. The funding, which is "really our Series B," should "take us through another year and a half," said Mary Tagliaferri, senior vice president and chief medical officer of Emeryville, Calif.-based Bionovo.

The company, which was established to advance discoveries made at the University of San Francisco, relied on grants to conduct much of its early work, specifically in the areas of apoptosis-inducing compounds for cancer and an estrogen receptor program to combat the symptoms of menopause. Bionovo raised about $10 million privately in 2005, and that same year, gained a public listing through a reverse merger with cookbook company Lighten Up Enterprises International.

"So, here we are in 2007, and we'll have four drugs in the clinic for five indications this year," Tagliaferri told BioWorld Today. And pending positive results from ongoing studies of its lead product, MF101, "we hope that will give us the opportunity to go out and raise additional funds."

The company began enrolling patients last week in a 217-patient Phase II study of MF101. That trial is intended to evaluate toxicity and pharmacokinetics of the drug, an oral estrogen-receptor beta-selective agonist designed to treat hot flashes and night sweats in peri-menopausal and menopausal women. Because of its selectivity, the drug does not activate the estrogen receptor alpha that has been linked to a cancer risk in existing hormone therapies.

Bionovo hopes to reach Phase III with MF101 in early 2008, though the company likely will seek a large pharma partner to commercialize the drug.

"This is a potential blockbuster drug," Tagliaferri said, adding that as a company of 30 employees, Bionovo is "really an R&D shop," focused on moving from drug discovery "quickly into clinical testing."

The company's oncology focus began with BZL101, an oral compound designed to induce apoptosis through mitochondrial transmembrane potentiation, targeting diseased cells only. The drug is preparing to move into a Phase II trial in patients with advanced metastatic breast cancer and, based upon promising preclinical results, also will begin a Phase I/II trial in pancreatic cancer.

Also in its pipeline, Bionovo has a second oral cancer drug, AA102, which it is moving into breast cancer trials.

The company, which reported a net loss of $1.3 million for the third quarter of 2006, had about $4.7 million in cash as of Sept. 30, 2006. Shares of Bionovo (OTCBB:BNVI) closed at $2.65 Monday, down 55 cents.

In other financings news:

• Adherex Technologies Inc., of Research Triangle Park, N.C., said Versant Partners Inc. agreed to purchase 30.3 million units of the company priced at 33 cents per unit for gross proceeds of about $10 million and offer an additional 45.5 million units at the same price for potential additional proceeds of $15 million. Each unit will consist of one common share and one-half of a common share purchase warrant. Adherex will use the net proceeds for research, product development, working capital and to pay the $1 million up-front fee to London-based GlaxoSmithKline plc, as recently announced, for all rights to eniluracil. (See BioWorld Today, Jan. 19. 2007.)

• Avalon Pharmaceuticals Inc., of Germantown, Md., is raising about $10 million in a direct private placement with institutional investors. The company agreed to sell 3 million shares of common stock priced at $3.34 each. The offering is expected to close today. Avalon focuses on developing small-molecule drugs for cancer and is in Phase I development with its lead product, AVN944, an oral inosine monophosphate dehydrogenase inhibitor for hematologic malignancies. Shares of Avalon (NASDAQ:AVRX) gained 38 cents Monday to close at $3.46.

• Cardiome Pharma Inc., of Vancouver, British Columbia, said underwriters of its cross-border public offering of 8 million shares exercised in full their overallotment option to purchase an additional 1.2 million shares priced at $10.50 each. Net proceeds are expected to be about $90 million and will be used to further development of vernakalant in atrial fibrillation, as well as fund the acquisition and development of additional programs, capital expenditures and for working capital and general corporate purposes. Bear, Stearns & Co. Inc. acted as book-running manager, CIBC World Markets Inc. served as co-lead manager and Canaccord Adams Inc. and Leerink Swann & Co. acted as co-managers. Cardiome's stock (NASDAQ:CRME) closed at $10.90 Monday, down 10 cents. (See BioWorld Today, Jan. 19, 2007.)

• Repros Therapeutics Inc., of The Woodlands, Texas, said it plans to offer 2.5 million shares of its common stock, and grant underwriters a 30-day option to purchase an additional 375,000 shares to cover any overallotments. Shares have not yet been priced. CIBC World Markets Corp. is acting as the sole book-running manager, with Punk Ziegel & Co. serving as co-lead manager and ThinkEquity Partners LLC as co-manager. Repros' stock (NASDAQ:RPRX) lost 19 cents Monday to close at $12.50.

• Stem Cell Therapeutics Corp., of Calgary, Alberta, proposed a C$2 million (US$1.7 million) unit offering, with each C20-cent unit to be comprised of one common share and one half of one common share purchase warrant exercisable for 24 months at a price of C25 cents. SCT develops NTx-265, a therapeutic regimen for stroke patients that includes human chorionic gonadotropin and erythropoietin. That program is enrolling patients in a Phase IIa trial. The company also named four members to its scientific advisory board: Myron Ginsberg, Joshua Hare, Craig Pratt and Samuel Weiss. Shares of SCT (CDNX:SSS) closed at C23 cents Monday, up C2 cents.

• Vanda Pharmaceuticals Inc., of Rockville, Md., said underwriters exercised their overallotment option to purchase an additional 570,000 shares, bringing the company's total offering to 4.4 million shares priced at $27.29 each. Net proceeds are expected to be about $110 million. JPMorgan and Morgan Stanley served as the joint book-running managers, with Banc of America Securities LLC and Natexis Bleichroeder Inc. acting as co-managers. Shares of Vanda (NASDAQ:VNDA) lost 1 cent Monday to close at $30.90. (See BioWorld Today, Jan. 22, 2007.)