YM financing to help accelerate CYT387 study

YM BioSciences (AMEX:YMI; TSX:YM) has raised about $3.2-million (U.S.) through a non-brokered private placement of 2.5 million common shares at a price of $1.27 each, with proceeds earmarked for an earlier-than-planned Phase 2 component of its trial at the Mayo Clinic with CYT387 in myelofibrosis.

“The recent decision by the company to accelerate the current Phase 1/2 clinical trial of CYT387 in myelofibrosis through an earlier-than-planned initiation of the Phase 2 component supports our belief that CYT387 has excellent potential for clinical success,” CEO David Allan said in a statement.

Safety and tolerability data from the Phase 1 arm of this study will be available in the next quarter, with preliminary Phase 2 data expected to be submitted for presentation at the American Society of Hematology conference late in 2010.

Mr. Allan said the previously announced expansion will allow for more patients to be dosed during 2010, in turn allowing more rapid and innovative selection of doses for registration-enabling Phase 3 studies in myelofibrosis.

“Since JAK 1/2 inhibitors have broad therapeutic applicability with prospects in numerous indications beyond myelofibrosis, including oncology and autoimmune diseases, YM, in addition to the expansion of this trial, is planning for the development of CYT387 in hematology, and oncology indications with unmet medical needs,” he added.