Ventrus Biosciences Announces $20 Million Financing

Ventrus Biosciences Announces $20 Million Financing

NEW YORK, Jan. 30, 2013 (GLOBE NEWSWIRE) -- Ventrus Biosciences, Inc.
(Nasdaq:VTUS) announced today the pricing of concurrent, separate underwritten
offerings of (i) 5,800,000 shares of its common stock at a price to the public
of $2.50 for each share of common stock, for expected gross proceeds of
approximately $14,500,000, and (ii) 220,000 shares of its Series A Non-Voting
Convertible Preferred Stock ("Series A") at a price to the public of $25.00
for each share of Series A, for expected gross proceeds of approximately
$5,500,000. The Series A is non-voting and each share of Series A is
convertible into 10 shares of Ventrus common stock, provided that conversion
will be prohibited if, as a result, the holder and its affiliates would own
more than 9.98% of the total number of Ventrus shares of common stock then
outstanding. All of the shares of common stock and Series A in these offerings
are to be sold by Ventrus. The common stock offering and the Series A offering
are being conducted as separate public offerings by means of separate
prospectus supplements, and neither offering is contingent upon the
consummation of the other. Ventrus expects to receive combined gross proceeds
of approximately $20,000,000 from these offerings, before deducting the
estimated underwriter discount and commissions and expenses. Ventrus also has
granted the underwriter a 30-day option to purchase up to an additional 15% of
the shares of Ventrus common stock sold in the common stock offering to cover
over-allotments, if any. These offerings are expected to close on February 4,
2013, subject to customary closing conditions.

William Blair & Company, L.L.C. is serving as the sole book-running manager of
the public offerings.

Each of these offerings is being made pursuant to an effective shelf
registration statement previously filed with the U.S. Securities and Exchange
Commission. This press release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of these
securities in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. Any offer, if at all, will
be made only by means of a prospectus supplement and accompanying prospectus
forming a part of the effective registration statement, copies of which may be
obtained, when available, from William Blair & Company, L.L.C., Attention:
Prospectus Department, 222 West Adams Street, Chicago, IL 60606, by telephone
at (800) 621-0687, or by e-mail at prospectus@williamblair.com.

About Ventrus Biosciences

Ventrus is a development stage pharmaceutical company focused on the
development of late-stage prescription drugs for gastrointestinal problems,
specifically anal disorders. Our lead product is topical diltiazem (VEN 307)
for the treatment of anal fissures, for which the first Phase 3 trial was
initiated in November 2010, and reported positive top line results in May
2012. The second Phase 3 trial began enrollment in the fourth quarter of 2012
and is ongoing. Our product candidate portfolio also includes topical
phenylephrine (VEN 308) intended to treat fecal incontinence. VEN 307 and VEN
308 are two molecules that were previously approved and marketed for other
indications and that have been formulated into our in-licensed proprietary
topical treatments for these new gastrointestinal indications.

Please Note: The information provided herein contains estimates and other
forward-looking statements regarding future events. Such statements are just
predictions and are subject to risks and uncertainties that could cause the
actual events or results to differ materially. These risks and uncertainties
include, among others: our ability to complete the offerings, including the
satisfaction of the closing conditions for each offering; the estimated
proceeds from each offering and our use of the anticipated proceeds from the
offerings; the components, timing, cost and results of clinical trials and
other development activities involving our product candidates; the
unpredictability of the clinical development of our product candidates and of
the duration and results of regulatory review of those candidates by the FDA
and foreign regulatory authorities; the unpredictability of the size of the
markets for, and market acceptance of, any of our products; our anticipated
capital expenditures, our estimates regarding our capital requirements, and
our need for future capital; our reliance on our lead product candidate, VEN
307; our ability to retain and hire necessary employees and to staff our
operations appropriately; and the possible impairment of, or inability to
obtain, intellectual property rights and the costs of obtaining such rights
from third parties. The reader is referred to the documents that we file from
time to time with the Securities and Exchange Commission.

CONTACT: Ventrus Biosciences, Inc.
         David Barrett
         646-706-5208
         dbarrett@ventrusbio.com
        
         Argot Partners
         David Pitts
         212-600-1902
         david@argotpartners.com
 
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