Diffusion Pharmaceuticals closes on $5.9M in additional private financing

Diffusion Pharmaceuticals LLC, a clinical-stage drug-development company commercializing first-in-class drugs to treat serious or life-threatening unmet medical conditions, today announced that it closed on $5.9 million in additional private financing during the second half of 2009, bringing the total the company raised in 2009 to $7.1 million.

The financing was a combination of private equity and convertible notes to existing investors.  Proceeds will support the company's ongoing operations, including completion of a Phase I/II clinical trial in peripheral arterial disease (PAD) patients for its lead drug compound, trans sodium crocetinate (TSC).

"The successful financing in 2009 gives us the ability to complete our ongoing clinical trial in PAD and position the company for critical post proof-of-concept activities," said David G. Kalergis, Chief Executive Officer.

Since its founding, Diffusion Pharmaceuticals has raised a total of $21.7 million to date including $19.1 million in private funds, and $2.6 million in Department of Defense research and development contracts.