Yale nutraceutical spinout Prevention Pharmaceuticals lands financing
Prevention Pharmaceuticals Inc. of New Haven, Conn., has sold $650,000 of a $2 million securities offering, through a combination of debt, options and warrants, according to a filing with the U.S. Securities and Exchange Commission. It will use the money to build the company and expand the marketing of its first product, an over-the-counter (OTC) Omega-3 fatty acid nutraceutical called Omax, said Prevention Pharmaceuticals Chairman and Director Harry Penner Jr.
He added that the company will continue raising money next quarter and aims this fall to introduce an OTC zinc-salts heartburn gel cap called Acid-Fix that is based on technology out of Yale University. Omax also was developed at Yale by psychiatrists who had sold just under $500,000 worth of it on the Web, but the money infusion at Prevention will help formalize and extend marketing of the product, Penner said.