Despite Tight Financial Market, Company with Anti-Cancer Drug in Clinical Trial Raises...

Mon Oct 20, 2008 12:56pm EDT

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Despite Tight Financial Market, Company with Anti-Cancer Drug in Clinical Trial Raises $3.6 Million in Private Placement

       Phoenix Biotechnology, Inc., Has Research and Development
             Relationship with M.D. Anderson Cancer Center
SAN ANTONIO--(Business Wire)--
During a time of tight credit, record-breaking stock market
plunges, and shell-shocked investors, anti-cancer drug development
firm Phoenix Biotechnology, Inc., has just completed a private
placement in which the company raised $3.6 million from individual
investors.

   The company has an anti-cancer agent based on a patented extract
from the oleander plant. The drug is in a U.S. Food and Drug
Administration Phase I clinical trial at the University of Texas M.D.
Anderson Cancer Center in Houston.

   Fifty-eight individual angel investors, including 10 physicians,
over the past month and a half bought into San Antonio-based Phoenix
Biotechnology, Inc., at $8 per share, with an average investment of
$62,000.

   "It is encouraging to see the confidence that these investors have
placed in Phoenix Biotechnology during a period of discomforting
market turmoil and tightening credit," said Lou Kost Jr., co-founder,
executive vice president, and director of Phoenix. "Many people today
are looking for opportunities to invest with people they know and
trust, and I believe it says a lot about Phoenix that nearly 20
percent of these investors are medical doctors."

   Since its incorporation in 2003, Phoenix's focus has been on
research to determine the therapeutic potential of various botanical
substances, such as oleander.

   The company in 2003 established a research and development
relationship with the M.D. Anderson Cancer Center's Department of
Experimental Therapeutics. The R&D program was established by Robert
Newman, Ph.D., professor of Experimental Therapeutics and co-director
of the Pharmaceutical Development Center at M.D. Anderson.

   The drug in the Phase I trial at M.D. Anderson, known by the
working name "PBI-05204," is being tested in patients with various
forms of cancer, including colon cancer and pancreatic cancer.

   "Our relationship with M.D. Anderson and Dr. Newman led to the
discovery of a patented extraction of Nerium oleander that has shown
activity against various tumor cell lines in the laboratory, and now
we have taken it to the next level with testing in people," said
Crandell Addington, co-founder, director, and president and CEO of
Phoenix Biotechnology. "The pharmacologically active chemistries of
this extract have been shown to inhibit the proliferation of cell
growth in certain forms of cancer."

   In laboratory tests, the drug has been shown to block several
critical oncogenesis pathways in these tumor cell lines, including the
PI3k/Akt pathway.

   The $3.6 million raised over the past month was the third round of
private placement funding for Phoenix. The company has raised a total
of $11.8 million in private placements since 2003.

   Phoenix has a total capitalization of 14.2 million shares and is
debt-free.

for Phoenix Biotechnology, Inc.
Joel Williams, 210-227-0221 x-231
jwilliams@dublinandassociates.com

Copyright Business Wire 2008