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Novelos Therapeutics Inc. reports it has raised $1.5 million through a private placement of stock and warrants to fund the company through the second quarter of 2011, and move its breast cancer and hepatitis drug candidates forward.

 Newton-based Novelos (OTCBB: NVLT) is selling units that consists of 21,428,576 shares of its common stock and five-year warrants to purchase up to an aggregate of 16,071,434 shares of its common stock at an exercise price of seven cents per share. Each unit consists of one share of common stock and a warrant to purchase 0.75 shares of common stock,and are being sold for seven cents per unit.

The shares and warrant units offered by Novelos falls under an effective registration statement filed with the U.S. Securities and Exchange Commission in May, and declared effective on July 8.

According to Harry Palmin, president and CEO of Novelos, the funding will help the company as it seeks to design a larger randomized controlled trial in breast cancer for the drug NOV-002.

Earlier this month, the Newton-based biotech announced positive Phase 2 results for NOV-002 in combination with chemotherapy treatment in patients with certain types of  breast cancer. The drug suffered a heavy blow as a lung cancer drug target when it failed in a late stage trial in February.

 

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