RegeneRx Biopharmaceuticals, Inc. (OTCQB: RGRX), a clinical-stage drug development company focused on tissue protection, repair and regeneration announced that it has verbally agreed to a short-term financing transaction with one of its major stockholders, and members of its board of directors and management. The funding will provide working capital through the first quarter of 2021 and while we await the completion of our phase 3 dry eye clinical trial (ARISE-3) expected later this year. Patient enrollment in the ARISE-3 trial, sponsored by our U.S. joint venture, ReGenTree LLC, was delayed by several months due to the COVID-19 virus.
Due to lower cash use than projected, the Company currently has sufficient capital to operate through October, 2020. The Company will disclose pertinent information related to the financing when the contemplated transaction is completed. While the Company expects the transaction to be completed shortly, there is no guarantee that it can be completed by October 31 or at all.
"We have been working diligently to secure financing for operations with a number of potential investors during a very challenging COVID situation and have been fortunate to have been able to reduce our cash use and extend our runway. I believe we should be able to consummate the currently contemplated transaction over the next week or so and strengthen our cash position while we await the completion and results of ARISE-3. Once we receive a readout from ARISE-3, we can determine how to proceed with any additional financings as well as other strategic options," stated J.J. Finkelstein, President and Chief Executive.
About RegeneRx Biopharmaceuticals, Inc. (www.regenerx.com)
RegeneRx is focused on the development of novel therapeutic peptides, including Thymosin beta 4 (T?4) and its constituent fragments, for tissue and organ protection, repair, and regeneration. RegeneRx currently has three drug candidates in clinical development for ophthalmic, cardiac/TBI and dermal indications, four active strategic licensing agreements in the U.S., China, and Pan Asia (Korea, Japan, and Australia, among others), and the EU, and has patents and patent applications covering its products in many countries throughout the world. RGN-259, the Company's ophthalmic eye drop, is currently in phase 3 development in the U.S. for dry eye syndrome and neurotrophic keratitis. The Company is also considering initiating a program to evaluate RGN-352, an injectable formulation of T?4 for the treatment of patients with COVID-19, if it is able to obtain the requisite funding. The Company previously successfully completed phase 1 with RGN-352.
