Company Also Announces Closing of First Tranche of PIPE Financing, Raising
$26.7 Million
Company to Host Conference Call Today at 5:00 p.m. EDT
MONTVALE, N.J., Oct. 16 /PRNewswire-FirstCall/ -- Memory Pharmaceuticals
Corp. (Nasdaq: MEMY) today announced an update on the investigational new drug
application (IND) filed in September 2006 with the U.S. Food and Drug
Administration (FDA) for MEM 3454. The FDA has advised the Company that in
order to fully review the toxicology reports that were submitted with the IND,
the agency requires further explanations of revisions that were made to those
reports since they were submitted with the Company's first IND for this trial
in May, and as a result the proposed Phase 2a clinical trial for MEM 3454 in
Alzheimer's disease has been placed on clinical hold. The FDA has also
deferred assessment of the adequacy of the Investigator's Brochure for the
trial pending submission of the additional information.
Memory Pharmaceuticals also reported that the FDA confirmed that the
clinical hold was not related to any manufacturing issues with MEM 3454 and
that the potential impurities issue, previously raised by the FDA in
connection with the Company's first IND for the proposed Phase 2a clinical
trial of MEM 3454, had been adequately resolved.
The Company believes that no additional studies or data will be required
to address the FDA's questions and that, as a result, it should be able to
provide to the FDA, by early November, the information necessary to facilitate
the FDA's review.
"Commencing the Phase 2a trial of MEM 3454 in Alzheimer's disease is a top
priority, and we are committed to resolving this issue as quickly as possible
and, ideally, in a timeframe that would enable us to still initiate the Phase
2a clinical trial for this drug candidate near the end of the year," stated
Jim Sulat, President and Chief Executive Officer of Memory Pharmaceuticals.
"We continue to believe that MEM 3454 has the potential to offer a new
approach for the treatment of debilitating central nervous system disorders
based on the safety and pharmacokinetic results of the Phase 1 trial of MEM
3454, coupled with the positive cognitive data generated in that trial."
Separately, the Company announced today the closing of the first tranche
of its recently announced private placement of common stock, raising gross
proceeds of approximately $26.7 million. Under the terms of the transaction,
Memory Pharmaceuticals issued approximately 23.2 million shares of common
stock and warrants for the purchase of approximately 7.1 million additional
shares of common stock at an exercise price of $1.33 per share. The closing
of the second tranche, which is expected to raise an additional $5.5 million
through the sale of approximately 5.0 million newly issued shares, is subject
to stockholder approval and the Company intends to call a special stockholders
meeting to approve the second tranche as soon as practicable.
Conference Call and Webcast Information
Memory Pharmaceuticals will hold a conference call today, Monday, October
16, 2006, at 5:00 p.m. EDT to provide an update on the Phase 2a clinical trial
of MEM 3454. The conference call will also be broadcast live from the
"Investors" section of the Company's website. Memory Pharmaceuticals' senior
management will host the conference call. Investors and other interested
parties may access the call as follows:
Date: Monday, October 16, 2006
Time: 5:00 p.m. EDT
Telephone (U.S.): 800-261-3417
Telephone (international): 617-614-3673
Participant Passcode: 80607567
Webcast: http://www.memorypharma.com under the
"Investors" section
An audio replay of the conference call will be available from 7:00 p.m.
EDT on Monday, October 16, 2006, until Monday, October 23, 2006. To access the
replay, please dial 888-286-8010 (U.S.) or 617-801-6888 (international) and
enter passcode number 67986370. An audio replay of the conference call will
also be available under the "Investors" section of the Company's website
during the same period.
About MEM 3454
MEM 3454 is a partial agonist of the nicotinic alpha-7 receptor. The
nicotinic alpha-7 receptor is a highly specialized receptor found in the CNS.
Compounds acting on this receptor could be beneficial in the treatment of
Alzheimer's disease and schizophrenia, as well as other psychiatric and
neurological disorders. MEM 3454 is the Company's lead drug candidate from
its nicotinic alpha-7 agonist program. Memory Pharmaceuticals is developing
MEM 3454 as potential therapy for Alzheimer's disease and considering
developing the compound as a treatment for schizophrenia.
About the Company
Memory Pharmaceuticals Corp., a biopharmaceutical company, is focused on
developing innovative drugs for the treatment of debilitating CNS disorders
such as Alzheimer's disease, schizophrenia, depression and bipolar disorder.
For additional information, please visit our website at
http://www.memorypharma.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 that are subject to
risks and uncertainties. All statements, other than statements of historical
facts, regarding management's expectations, beliefs, goals, plans or Memory
Pharmaceuticals' prospects, future financial position, future revenues and
projected costs should be considered forward-looking. Readers are cautioned
that actual results may differ materially from projections or estimates due to
a variety of important factors, including the risks and uncertainties
associated with: obtaining additional financing to support Memory
Pharmaceuticals' R&D and clinical activities and operations; conducting
preclinical and clinical trials of Memory Pharmaceuticals' drug candidates
that demonstrate these candidates' safety and effectiveness; obtaining
regulatory approvals to conduct clinical trials and to commercialize Memory
Pharmaceuticals' drug candidates; Memory Pharmaceuticals' ability to enter
into and maintain collaborations with third parties for its drug development
programs; Memory Pharmaceuticals' dependence on its collaborations and its
license relationship with Bayer; achieving milestones under Memory
Pharmaceuticals' collaborations; Memory Pharmaceuticals' dependence on third-
party preclinical or clinical research organizations, manufacturers and
consultants; and protecting the intellectual property developed by or licensed
to Memory Pharmaceuticals. These and other risks are described in greater
detail in Memory Pharmaceuticals' filings with the Securities and Exchange
Commission. Memory Pharmaceuticals may not actually achieve the goals or plans
described in its forward-looking statements, and investors should not place
undue reliance on these statements. Memory Pharmaceuticals disclaims any
intent or obligation to update any forward-looking statements as a result of
developments occurring after the date of this press release.
SOURCE Memory Pharmaceuticals Corp.
-0- 10/16/2006
/CONTACT: Jzaneen Lalani, Vice President, Legal Affairs, +1-201-802-7249;
or Laura Perry, Stern Investor Relations, Inc., +1-212-362-1200/
/Web site: http://www.memorypharma.com /
(MEMY)
CO: Memory Pharmaceuticals Corp.
ST: New Jersey
IN: HEA MTC BIO
SU: FDA TRI CCA
LD
-- NYM242 --
1383 10/16/2006 16:01 EDT http://www.prnewswire.com
