Ensuring ample cash reserves to support development of its cancer and inflammatory drug pipeline, Micromet Inc. gained access to up to $25 million through a committed equity financing facility.

The Carlsbad, Calif.-based company entered a deal in which private investment group Kingsbridge Capital Ltd. agreed to provide funds over the next three years in exchange for Micromet shares, though it's up to Micromet to determine the timing and amounts of draw-downs. Micromet is not obligated to access any or all of the money and is not precluded from conducing other types of financing.

The committed equity financing facility (CEFF) is popular these days, as it is flexible and doesn't rely on the capital markets. Micromet joins firms such as Hayward, Calif.-based Kosan Biosciences Inc., which entered a deal with Kingsbridge in July to add up to $50 million over the next three years, and Sunnyvale, Calif.-based Pharmacyclics Inc., which gained access to up to $20 million over an 18-month period from Azimuth Opportunity Ltd.

Representatives of Micromet could not be reached for comment, but the company said in a press release that it is focusing on further developing two clinical-stage compounds and plans to move some of its preclinical programs into the clinic.

The company's lead product, MT201 (adecatumumab), is in two Phase II trials in prostate cancer and breast cancer. That compound, which is described as a recombinant human monoclonal antibody, is designed to bind to the epithelial cell adhesion molecule, a cell-surface protein frequently found on most solid-tumor types. It is being developed in a collaboration with Geneva-based Serono SA.

Micromet's second product, MT103, is partnered with MedImmune Inc., of Gaithersburg, Md., which last week submitted an investigational new drug application to begin a U.S. trial of the drug in non-Hodgkin's lymphoma patients who are not eligible for curative therapy. A Phase I study in NHL in Europe is ongoing.

MT103 is a recombinant single-chain bispecific T-cell engager molecule designed using Micromet's BiTE technology. It's aimed at the CD19 antigen expressed on B cells.

In its preclinical pipeline, Micromet has MT110, which is a BiTE molecule in development against solid tumors, and MT203 and MT204, both of which are antibodies targeted to acute and chronic inflammatory disorders. Another antibody, D93, is being investigated as an antiangiogenic compound for cancer.

Under the terms of the CEFF with Kingsbridge, Micromet will be allowed to access capital in tranches of up to $5 million, or 1 percent to 1.5 percent of its market cap, whichever is less. Each tranche will be priced over an eight-day period, with Kingsbridge receiving a discount ranging from 6 percent to 14 percent, depending on the average market price over the pricing period.

Micromet also agreed to issue a warrant to Kingsbridge for the purchase of up to 285,000 shares at an exercise price of $3.21 per share.

The maximum number of shares Micromet can sell to Kingsbridge under the CEFF is 6.3 million.

Micromet reported a net loss of $29.5 million, or $1.18 per share, due mostly to a cash charge of $20.9 million associated with the completion of a reverse merger with CancerVax Corp.

Micromet announced in January that it would acquire CancerVax in a deal valued at about $127 million to gain access to U.S. markets and U.S. headquarters in Carlsbad. The merger closed in May. (See BioWorld Today, Jan. 10, 2006.)

As of June 30, the company had a cash position of $36.1 million, though it added an additional $8 million in July through a private placement of 2.2 million shares priced at $3.60 each.

Shares of Micromet (NASDAQ:MITI) closed at $2.60 Thursday, up 5 cents.

In other financings news:

• EpiCept Corp., of Englewood Cliffs, N.J., closed a $10 million senior secured term loan with Hercules Technology Growth Capital Inc., and plan to use funds to advance its pipeline, which includes its lead oncology compound, Ceplene, in development for acute myeloid leukemia. The company also has LidoPAIN SP, a sterile lidocaine patch for chronic pain caused by peripheral neuropathies, and LidoPAIN BP, a non-sterile lidocaine patch for acute or recurrent lower back pain. The loan has a final maturity on Aug. 30, 2009, though EpiCept will be eligible for a six-month extension if it completes certain milestones. Under the terms, the company agreed to grant to Hercules warrants to purchase about 471,000 shares of stock at $2.65 each. Shares of EpiCept (NASDAQ:EPCT) lost 2 cents Thursday to close at $2.97.

• IsoTis SA, of Lausanne, Switzerland, secured a $5 million credit facility from SVB Silicon Valley Bank for an initial two-year term. The line of credit will help fund IsoTis' working capital requirements necessary to support its growth. The company's cash position, including restricted cash, was $15 million as of June 30, and the credit facility, along with the company's recent sale of the dental business to Keystone Dental for $7.4 million, will help it grow its orthopedics business.

• Lorus Therapeutics Inc., of Toronto, completed the transaction previously announced with High Tech Beteiligungen GmbH & Co. KG, of Dusseldorf, Germany, to issue 28.8 million common shares at 36 cents per share for gross proceeds of $10.4 million. In exchange for the shares, High Tech was to receive demand registration rights through June 30, 2012, and have the right to nominate a member to Lorus' board. Shares of Lorus (AMEX:LRP) lost 1 cent Thursday to close at 29 cents.