La Jolla Pharmaceutical Co. announced a $2.9 million investment by existing preferred shareholders.
The cash will fund a clinical trial to treat patients with chronic kidney disease.
The firm and stockholders entered into a consent and waiver agreement that released $2.9 million of previously restricted cash to the company to fund operations.
The stockholders also waived the right to redeem their preferred stock on Jan. 20, 2013.
GCS-100, the company's lead product candidate, is a first-in-class inhibitor of galectin-3, a novel molecular target implicated in chronic organ failure and cancer.
"This financing is an important milestone for La Jolla. We thank our investors for their confidence in our team and the program we have planned for GCS-100," said George Tidmarsh, M.D., Ph.D., La Jolla's president and CEO.
Proceeds from the financing will be used for a planned clinical trial of GCS-100 in chronic kidney disease, as well as general corporate expenses.
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