CHARLOTTESVILLE, VA – Diffusion Pharmaceuticals, a drug development company commercializing drugs that enhance oxygen diffusion, has closed a $2.9 million private placement.

The company, which has raised a total of $13.1 million in private equity and $2.6 million in government R&D grants from the Office of Naval Research, has not disclosed the names of its investors.

“In an economic environment in which one third of all US biotech companies may go out of business for lack of funding, we are fortunate to have key investors who strongly believe in our technology and who continue to increase their investment level. We are also fortunate to have attracted several new investors at significant levels,” said David G. Kalergis, Diffusion CEO.

Diffusion Pharmaceuticals’ pipeline of first-in-class small molecules uses a novel mechanism of action allowing more oxygen to reach oxygen-deprived (hypoxic) tissues in the body.

Potential clinical applications include cancer, critical care uses such as trauma, hemorrhage, stroke, and heart attack, as well as chronic conditions such as peripheral arterial and vascular disease, cardiovascular disease, and respiratory disorders.

In preclinical studies, TSC has been shown to increases the rate of oxygen diffusion by about 30 percent. TSC has been shown in animal models to increase the diffusion of oxygen into hypoxic cancerous tumor tissue, making the cancer more susceptible to radiation therapy and increasing survival.

In addition, animals suffering severe blood loss have a higher rate of survival if treated with TSC.

The company is conducting clinical trials of its lead molecules. The company is headquartered in Charlottesville, VA.

Online: www.diffusionpharma.com

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