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The European Union bank regulator says this year’s stress tests on banks will be harsher than last year’s.

The European Banking Authority says Friday the test assumes EU economic output will shrink 0.4 percent in 2011 and will show no growth in 2012 _ a 4 percentage point difference from current forecasts.

That compares with a 3 percentage point drop assumed in the 2010 stress tests.

The EBA has come under fire for not setting stricter shock scenarios for banks, with critics saying a partial default of a highly indebted country like Greece cannot be ruled out.

However, the EBA says banks will have to disclose all relevant exposure to sovereign bonds, which would allow analysts to run their own calculations.

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European Central Bank President Jean-Claude Trichet said the ECB may raise interest rates next month for the first time in almost three years to fight mounting inflation pressures.

An “increase of interest rates in the next meeting is possible,” Trichet told reporters in Frankfurt today after the central bank set its benchmark rate at a record low of 1 percent for a 23rd month. “Strong vigilance is warranted,” he said, adding that any move would not necessarily be the start of a “series.”

The comments surprised economists and investors, most of whom hadn’t expected the ECB to raise rates before August. The euro jumped more than 0.9 percent to $1.3976, the highest since November. German government bonds, a benchmark for Europe, dropped, sending the yield on the two-year bund 18 basis points higher to 1.713 percent.

Trichet is signaling tighter policy at a time when Ireland and Greece are struggling to cope with the terms of last year’s European Union bailouts and governments are hammering out a plan to draw a line under the crisis. The danger is that raising rates to tackle inflation will exacerbate the financial tensions that still run through euro region bond markets.

‘The ECB Will Hike’

“The ECB will hike rates by 25 basis points in April and I wouldn’t be surprised to see another increase in September or October,” said Natascha Gewaltig, chief European economist at Action Economics in London, who forecast before today’s meeting that the ECB would tighten policy in the first half. “Inflation expectations are picking up, that’s a clear signal for rate setters.”

The ECB is concerned about so-called second-round effects, when companies raise prices and workers demand more pay to compensate for soaring energy and food costs, entrenching faster inflation. Crude oil surged above $100 a barrel last week amid political tensions in the Middle East and North Africa. Euro- area inflation accelerated to 2.4 percent last month.

“There is a strong need to avoid second-round effects,” Trichet said, calling for moderation from wage and price setters. The ECB is “prepared to act in a firm and timely manner.”

He signaled any rate move would likely be a quarter-point step, saying a bigger increase would not be appropriate in his view. A rate increase in April would put the ECB ahead of its U.S. and U.K. counterparts.

Federal Reserve

Federal Reserve Chairman Ben S. Bernanke said on March 1 that the surge in oil and other commodity prices probably won’t cause a permanent increase in broader inflation and repeated that U.S. borrowing costs are likely to stay near zero.

The Bank of England may be moving closer to raising its key rate from 0.5 percent, with three of its nine policy makers voting for an increase last month.

China on Feb. 8 raised rates for the third time since mid- October to curb inflation and prevent its economy from overheating.

The ECB today raised its inflation and growth forecasts.

Inflation will average 2.3 percent this year, up from a December forecast of 1.8 percent and in breach of the ECB’s 2 percent limit, before slowing to 1.7 percent in 2012, the projections show. The 17-nation euro-area economy will expand 1.7 percent this year and 1.8 percent next, up from previous forecasts of 1.4 percent and 1.7 percent, according to the ECB.

Debt Crisis

At the same time, Europe’s debt crisis is far from over, with politicians yet to agree on new steps to bolster the region’s rescue fund.

While governments are cutting spending to rein in deficits, risk premiums for Spain, Portugal and Italy have increased since a Feb. 4 EU summit that failed to endorse an economic competiveness plan proposed by Germany and France as a condition for aid.

“The ECB is preparing to raise rates too early,” said Julian Callow, chief European economist at Barclays Capital in London. “It should give the euro-area economy more chance to get on a sustainable footing, particularly since it is still too early to tell how the intense fiscal consolidation in many countries will affect demand this year and next.”

Trichet said the ECB will keep its emergency liquidity measures in place at least through the end of the second quarter to help soothe tensions in financial markets. The ECB is lending banks as much money as they want at its benchmark rate for periods of up to three months.

Liquidity Measures

“Trichet was much more cautious on the liquidity front,” said Marco Valli, an economist at UniCredit Group in Milan. “This confirms that standard and non-standard measures in the ECB’s strategy are very much separated. We think that rate hikes throughout 2011 will take place with full allotment still in place, at least for weekly operations.”

The ECB last raised rates in July 2008, just before the global financial crisis intensified. It was then forced into an unprecedented series of rate cuts to prop up the economy. That’s unlikely to happen this time, said Jens Sondergaard, an economist at Nomura International in London, who now expects three quarter-point rate increases from the ECB this year.

“The sovereign debt crisis would have to intensify significantly for the ECB to delay the start of the rate hiking cycle,” he said. “The message from today’s meeting is clear: with inflation risks crystallizing, the ECB stands ready to act in April.”

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Washington has started getting ready for a possible government shutdown.

Behind the scenes, federal agencies are working on their plans for shutting down operations and deciding how many workers they need to perform essential operations.

Congress has one week — until the end of March 4 — to pass another short-term bill to fund federal agencies. If they fail, agencies are legally obligated to perform only essential activities necessary to protect life and property.

In other words, agencies have to move at warp speed to quickly wind down most operations. If they don’t, they face legal ramifications for spending money they’re not allowed to.

The government would keep essential services — like air traffic control and the national security apparatus — in full operating mode.

Each agency has its own shutdown plan. To prepare for next week, the agencies are updating their plans and submitting them to the White House’s Office of Management and Budget.

Obama administration officials have declined to release those plans, which include details like how many employees are needed to perform essential functions, and how long it will take each agency to complete a shutdown.

The budget office maintains the agencies are prepared.

"OMB is prepared for any contingency as a matter of course — and so are all the agencies," Kenneth Baer, OMB communications director, said earlier this week in a statement. "In fact, since 1980, all agencies have had to have a plan in case of a government shutdown, and they routinely update them."

Both Democratic and Republican leaders in Congress have said they want to avoid a shutdown.

But OMB is watching Congress. According to the guidance distributed to other federal agencies, OMB says it will monitor the status of congressional actions and notify agencies if shutdown plans are to be implemented.

The last time the federal government went dark was during the Clinton administration: five days in November 1995 and another 21 days ending in January 1996.

At the time, Sen. Dianne Feinstein asked the Government Accountability Office to prepare a report that detailed how many workers would be kept on the job.

Relying on each agency’s shutdown plan, the GAO found that some agencies, like NASA, would furlough more than 90% of its employees. Meanwhile, the Justice Department would retain 75% of its staff.

Of course, 15 years have passed since the GAO studied the issue, and plans might look significantly different. And in practical terms, agencies are allowed some wiggle room in who they keep on the job.

During the Clinton-era shutdown, new Social Security claims weren’t being processed because the Social Security Administration furloughed 61,415 employees. As the shutdown wore on, the agency adjusted its plan and recalled workers to start processing new claims.

Still, a lot of services provided by the government would go dark.

In the last major shutdown, the government closed 368 National Park Service sites, along with national museums and monuments, according to a Congressional Research Service report.

In addition, 200,000 passport applications went unprocessed, and toxic waste cleanup work at 609 sites stopped, according to the same report. The National Institutes of Health stopped accepting new clinical research patients, and services for veterans, including health care, were curtailed. 

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Portugal’s financial agony deepened Friday, threatening to pitch Europe into a whole new round of economic turmoil over its debt crisis.

The country’s borrowing costs are punishingly high, with the interest rate on its 10-year bonds holding above 7 percent for a 10th straight session Friday.

As Portugal _ one of the smallest and frailest in the 17-nation eurozone _ runs out of options, its leaders are pressing fellow European nations to adopt new crisis management measures at a summit next month, ahead of a euro4.5 billion ($6.13 billion) debt repayment that falls due for Portugal in April.

Yet the broad consensus in markets is that Portugal is doomed to become the third member of Europe’s bailout club, after Greece and Ireland, partly because the continent’s paymaster Germany doesn’t want the issue to fester for much longer.

Another bailout for a eurozone member is sure to further undermine market confidence in the fiscal soundness of the single currency bloc and carry severe consequences for other vulnerable _ and much bigger _ countries such as Spain, Belgium and Italy.

Filipe Sila, debt manager at Portugal’s Banco Carregosa, said investors have turned their backs on Portugal, frightened away by a level of risk that’s deemed too great and worried they might not get their money back.

“Many political decisions are pending that could have a lot of bearing” on what happens, he said. “It’s an additional risk. I think nobody is buying Portuguese debt at the moment except the European Central Bank.”

The catalyst for the renewed tensions was eurozone leaders’ failure at a Brussels meeting two weeks ago to come up with anything dramatic that could douse the yearlong financial firestorm, despite bold pronouncements from many that a “comprehensive package” was in the offing. Those predictions briefly calmed investors.

The most visible sign of the new heightened state of stress is in the bond markets, where Portuguese bond yields have spiked dramatically.

The spread between two-year Portuguese and German bond yields has risen by more than a percentage point this week alone, while Portugal’s 10-year yield has risen three quarters of a percent to a potentially unsustainable 7.5 percent.

Portugal’s borrowing costs for its three-year government bonds stands at 5.6 percent _ more or less the rate the International Monetary Fund and eurozone countries charged Athens and Dublin for their loans and making a bailout look more palatable for the Portuguese.

A number of analysts think the bailout option will become more acceptable for Portugal, given that its economy is contracting once again.

“Although Portugal has a lower debt level than Greece, its high fiscal deficit and dismal growth prospects expose the country’s debt dynamics to market risks,” said Athanasios Vamvakidis, a strategist at Bank of America Merrill Lynch. “Beyond debt sustainability concerns, the lower IMF-EU borrowing cost should look increasingly attractive to Portugal.”

But the Portuguese government, keen to keep its domestic political reputation for economic management intact, insists it doesn’t want or need assistance. It says its austerity package of pay cuts and tax hikes will lower its grievous debt load and restore international faith in its economy.

It is also urging the European Union to set aside the differences between member states and quickly take some action that would ease market tensions.

“(Europe) has to do its part and respond to the scale of the problem,” Portugal’s minister for the Cabinet, Pedro Silva Pereira, said Thursday.

Germany, however, appears reluctant to increase the size and scope of Europe’s current bailout fund unless all euro countries agree to stricter fiscal policies and Portugal bites the bullet and applies for a rescue.

Financial markets mistrust Portugal just as they did Greece and Ireland, but for different reasons. Portugal has recorded feeble growth over the past decade, forcing it to run up high debts in order to keep financing its economy.

The outlook for the future is no brighter. Portugal’s central bank now predicts a double-dip recession after a slight recovery last year, when the jobless rate climbed to a record 11.1 percent.

Moody’s Investor Services has warned it may cut its A1 rating on Portugal, while Standard & Poor’s Ratings Services is also considering a downgrade.

Those considerations are helping push Lisbon, which also has to find almost euro5 billion ($6.8 billion) to settle outstanding debts in June, into a corner.

The prevailing view is that the March 25 summit of EU leaders will have to come up with something big and bold on how to deal with Europe’s debt crisis or else face the wrath of the markets.

____

Pylas reported from London.

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Prime Minister Jose Socrates said Portugal doesn’t need a bailout from the European Union and its 2010 budget deficit will be lower than forecast.

Socrates, in a speech in Lisbon today, said rumors that the country needs aid are only helping “speculators” while hurting Portugal and the euro. He didn’t give a new deficit figure for 2010. Emanuel Santos, Portugal’s secretary of state for the budget, said on Jan. 6 that the government had already met its target for a budget gap of 7.3 percent of gross domestic product last year.

“The budget deficit will clearly be below forecast,” Socrates said. “The country is doing its job and doing it well. Portugal will not request financial aid for the simple reason that it’s not necessary.”

Portugal tomorrow plans to sell as much as 1.25 billion euros ($1.6 billion) in debt, the first bond auction this year by any of the euro region’s most-indebted countries. The difference in yield between Portuguese 10-year bonds and German bunds, Europe’s benchmark, reached a euro-era record of 484 basis points on Nov. 11. The spread was 403 basis points today.

Austerity Measures

Portugal is raising taxes and cutting wages as it tries to convince investors it can narrow its budget gap further after the Greek debt crisis led to a surge in borrowing costs for indebted euro nations last year. Ireland in November became the second euro country after Greece to seek a bailout and the first to request aid from the European Financial Stability Facility.

German Chancellor Angela Merkel, appealing for “calm” on financial markets, said today that Portugal’s budget cuts need time to make an impact.

Portugal has, in my opinion, taken very important and decisive measures and I believe the implementation of these steps will take some time,” Merkel told reporters in Nicosia, Cyprus. The European Commission “believes that these measures are sufficient to reach the targets.”

Portuguese yields may be rising to levels that force the nation to request aid. The country’s existing 10-year debt has yielded more than 7 percent in 10 of the past 62 days, according to Bloomberg data. Greece needed a rescue within 17 days of its 10-year yield breaching 7 percent on April 6, while Ireland lasted less than a month after it cracked that level in October.

Portuguese government revenue rose more than forecast last year and spending gained less than predicted, Socrates said. Spending rose 1.7 percent in 2010, less than the 2.5 percent forecast, and revenue gained 5.3 percent, more than the 4.5 percent predicted, he said today. The government ended the year with 800 million euros more than it projected, Socrates added.

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Pacific Investment Management Co., which manages the world’s biggest bond fund, is buying Australian notes backed by home loans in the secondary market to profit from higher yields as European investors dump the bonds.

Pimco’s Australian unit, which manages about A$32 billion ($32 billion), this month bought AAA rated residential mortgage- backed securities yielding as much as 165 basis points more than the bank bill swap rate, Robert Mead, Sydney-based head of portfolio management, said in an interview. New bond sales pay about 110 basis points, or 1.1 percentage points, he said.

“We think the cheapest asset across Australian fixed- income is secondary market RMBS,” Mead said. “Distressed areas of Europe are now net sellers of Australian RMBS, which we are benefiting from.”

As much as a quarter of the RMBS sold annually by Australian lenders between 2002 and 2007 was denominated in euros to attract European investors, according to data from Standard & Poor’s. The region is now battling a sovereign debt crisis that’s seen Greece and Ireland accept financial bailouts and forced the European Union to create a 750 billion-euro ($987 billion) emergency fund.

Moody’s Investors Service lowered Ireland’s credit rating five levels to Baa1 from Aa2 on Dec. 17, with further downgrades possible, as the government struggles to contain losses in the country’s banking system. Moody’s said last week it may lower Spain from Aa1 and also placed Greece’s Ba1 rating on review for a possible downgrade.

‘Selling Priorities’

When institutions are undercapitalized and don’t have access to new sources of funding, they “need to sell assets to reduce their balance sheet size,” Mead said. “They often focus on high dollar price, liquid assets as selling priorities.”

Many offshore structured investment vehicles, which made up a “sizeable share of the international investor base” for Australian RMBS before the 2007 credit freeze, were forced to liquidate their portfolios during the crisis and sell the notes on the secondary market, Reserve Bank of Australia Assistant Governor Guy Debelle said in a Nov. 30 speech.

Secondary market RMBS spreads widened to as much as 450 basis points amid the financial crisis, from 20 basis points before the U.S. subprime collapse roiled markets, according to the speech.

Wide Bay Australia Ltd., a non-bank lender, paid 105 basis points more than the bank bill swap rate on A$138 million of AAA rated RMBS, with a weighted average life of 1.5 years, according to an e-mailed statement last week from Australia & New Zealand Banking Group Ltd., which helped manage the sale.

ANZ Bank, Australia’s third-largest bank by market value, paid a 70 basis-point spread to sell A$100 million of three-year bonds last month, according to data compiled by Bloomberg.

House Prices

Pimco bought Australian mortgage bonds denominated in U.S. and local dollars and the euro, Mead said. The bond investor prefers to buy RMBS in the secondary market because home owners who borrowed the underlying mortgages which back the notes have proven they can meet repayments, he said.

“The nice thing about those securities is that house prices have gone up since, so already conservatively structured loan to valuation ratios have become even more conservative,” he said. “Our strong preference is the seasoned secondary market opportunities.”

House prices in Australia have risen 20 percent since the start of 2009, according to the statistics bureau.

Even as Gerard Minack, a Sydney-based developed markets strategist at Morgan Stanley, warned in August that homes are about 40 percent overvalued, the Reserve Bank of Australia said in a June report no rated portions of the nation’s mortgage bonds have suffered a default.

Australian Dollar

Pimco also sees Australian financial bonds as attractive, and maintains an overweight position to the nation’s dollar, Mead said.

The currency has gained 10 percent against the greenback this year, the second-best performer of 16 major currencies tracked by Bloomberg. Financial debt has returned 7.03 percent this year, according to a Bank of America Merrill Lynch index. The benchmark S&P/ASX 200 Index of stocks has returned 1.3 percent including reinvested dividends, according to data compiled by Bloomberg.

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This is going to be a hectic week for followers of initial public offerings. Ten companies are currently on tap to make their debut.

If you didn’t know any better, you’d think it was 1998 all over again — except for one thing. There aren’t any major tech companies on this week’s docket.

General Motors, of course, is grabbing all the headlines. The automaker is tentatively set to return to the public markets (GM ticker and all) on Thursday.

The government is selling a portion of the stake it acquired in GM as part of its bailout. The hope is that a leaner-and-meaner post-bankruptcy GM will eventually generate a profit — or at the very least, a smaller loss — for taxpayers.

But GM is not the only well-known firm that’s going to test the public markets. Caesars Entertainment, the casino company formerly known as Harrah’s Entertainment, is set to start trading this week too. Ditto for big consulting firm Booz Allen Hamilton and brokerage firm LPL Financial.

But none of those companies are your classic IPO candidates — hot, rapidly growing upstarts backed by venture capital firms. Instead, Caesars, Booz Allen Hamilton and LPL all count private equity firms as their main investors.

Caesar’s, back when it was still known as Harrah’s, was bought in 2008 by Apollo Management and TPG. One of the main investors in Booz Allen Hamilton is the Carlyle Group. And LPL is majority-owned by Hellman & Friedman and TPG.

This is an interesting trend that isn’t expected to change any time soon. If you look at a list of some of the more high-profile firms that have already filed to go public, you won’t find sexy Silicon Valley darlings like Facebook, Twitter, Zynga and LinkedIn.

None of those firms are expected to file for an IPO until next year, at the very earliest. Many think it won’t be until 2012 or 2013 that any of social networking’s Big Four become publicly traded companies.

Experts say it’s a sign of the times. With the economy still merely chugging along as opposed to solidly growing, the best candidates to go public are companies that are turnaround stories, not hot growth stocks.

"Private equity firms buy things out of the rubble, companies that were cold- shouldered by the market. They buy companies on the cheap, clean them up and take them public again," said Ben Holmes, founder of MorningNotes.com, a Boulder, Colo.-based research firm focusing on IPOs and secondary offerings.

GM clearly fits that bill. Just substitute the "Treasury Department" and "taxpayers" for "private equity firms."

Holmes does not expect a comeback in venture-backed tech IPOs until it’s clearer that the recovery in the economy is real and sustainable.

Josef Schuster, CEO of IPOX Capital Management, a Chicago-based firm that oversees the Direxion Long-Short IPO Fund, agreed. The price gains for private-equity backed IPOs are likely to be muted in the short-term, since they don’t have a lot of immediate growth potential, he added.

"These stocks probably won’t pop at the open, but they all look reasonable as investments for the long-run," Schuster said.

The window for venture-backed IPOs hasn’t completely slammed shut. But investors looking for more exciting new stocks may have to take risks on smaller companies based outside the United States.

Schuster points out that one of the better-performing recent IPOs is a Chinese company that did have venture backing. Mecox Lane (MCOX), a Shanghai-based online apparel retailer, shot up 57% on its first day of trading late last month.

Sequoia Capital — the venture capital firm that has invested in Apple (AAPL, Fortune 500), Google (GOOG, Fortune 500), Oracle (ORCL, Fortune 500) and many other successful tech companies — is one of the investors in Mecox Lane. Sequoia also invested in another recent Chinese IPO, although not in the tech world: It’s a backer of vegetable producer Le Gaga (GAGA).

Along those lines, another Chinese venture-backed company is set to go public this week. Schuster said he would not be surprised if it wound up trumping GM as the week’s top IPO performer.

BitAuto, a Beijing-based company that provides Chinese consumers with online pricing information about cars, is scheduled to start trading later this week. Venture capital firms DCM and Legend Capital are two of BitAuto’s investors.

It may not be the worst thing in the world that the IPO calendar is currently dominated by stodgier companies. It seems investors learned their lesson from the dot-com bubble in 2000: The days of getting rich quick off a tech IPO are long gone.

With that in mind, Holmes said that of all of this week’s IPOs, the one to watch is GM.

"GM is important for the psychology of the market. It may be a case of ‘as goes GM, so goes stocks’ for the rest of the year," he said. "It feels like we really are crawling out of the hole."

- The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney.com, and Abbott Laboratories, La Monica does not own positions in any individual stocks.  

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Top Democrats are uniting with Republicans in a show of support for small business owners: Senate Finance Committee Chairman Max Baucus, D-Mont., said Friday that he will introduce legislation to repeal the expanded 1099 reporting requirements set to take effect in 2012.

"I have heard small businesses loud and clear and I am responding to their concerns," Baucus said in a prepared statement. "Small businesses are the backbone of our economy in my home state of Montana and across the country, and they need to focus their efforts on creating good-paying jobs — not filing paperwork."

The measure was adopted in March as part of the massive health care reform law, but only came to light months later when advocacy groups drew attention to the provision. Starting in 2012, businesses will be required to issue 1099 tax forms not only to contracted workers (as they already do) but also to any individual or corporation from which they buy more than $600 in goods or services in a year.

Tax experts say that change would require business filers — including freelancers and sole proprietors — to issue millions of new 1099 forms each year.

Business owners say that the change — intended to raise tax revenue by increasing compliance — will swamp them with an onerous flood of paperwork. Republicans have lead the charge for repeal of what they called a "job-killing" requirement no credit check payday loans. National Taxpayer Advocate Nina Olson warned that the burden of filing all those additional forms "may turn out to be disproportionate" to the benefit it will deliver.

In September, Sen. Mike Johanns, a R.-Neb., proposed a measure to repeal the requirement entirely. Sen. Bill Nelson, a Florida Democrat, countered with a more moderate proposal at the same time, but neither measure passed.

Since then, however, President Obama indicated that he would support a repeal of the measure.

Baucus did not indicate when he plans to introduce repeal legislation. His office did not immediately return a call seeking further comment.

Small business advocates have been lobbying hard to get the measure repealed.

"We are pleased to see that our leaders on both sides of the aisle are willing to do the right thing for our nation’s job creators," Dan Danner, president and CEO of National Federation of Independent Business, said in a prepared statement. "Small business should be the one thing that unifies our leaders as we work to come out of these difficult economic times."  

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The United States needs to follow the example of major competitors like Germany and China that have used exports to propel economic growth, a top White House official said on Wednesday.

With U.S. unemployment still near 10 percent, President Barack Obama has increasingly touted trade as a way to generate jobs without requiring new federal spending that would add to the huge U.S. budget deficit.

“We’re going to grow our way out of this and exports are going to be an important component of that. For that, all patriotic Americans can agree. Because the American economy has never taken a back seat to anybody and we are not about to start now,” White House economic adviser Austan Goolsbee said in a video posted on the White House website.

Obama, whose party took a beating in last week’s congressional election, has carried the export message on his current trip to Asia faxless cash advances. He has already visited India and Indonesia and will also stop in South Korea and Japan.

Earlier this year, Obama set a goal of doubling U.S. exports to $3.14 trillion dollars by the end of 2014.

“That would be a significant increase. In fact, the biggest increase that any country has ever had. But we believe that we can do it,” Goolsbee said.

For most of the last 10 years, the United States depended “almost entirely” on increasing consumption to fuel economic growth while competitors like Germany and China “were putting greater and greater focus on exporting,” he said.

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TetraLogic Pharmaceuticals completed a $32 million private stock sale Tuesday, the proceeds from which will be use to advance the clinical development of the biopharmaceutical company’s experimental cancer treamtments.

The series C venture capital financing was led by San Francisco-based Clarus Ventures, a new investor in the company.

Also participating in the financing were new investor Hatteras Venture Partners and existing investors Amgen Ventures, HealthCare Ventures, Latterell Venture Partners, Novitas Capital, Philadelphia-based Quaker BioVentures and the Vertical Group.

Malvern, Pa.-based TetraLogic’s lead drug candidate for the treatment of cancer, TL32711, is designed to neutralize the activity of proteins that block tumor cell death payday loans. The compound is in early clinical testing as a potential treatment for patients with solid tumors and lymphoma.

“The support from our premier group of investors further validates our enthusiasm for the potential of TL32711 to treat cancer,” said John Gill, TetraLogic’s president and CEO.

Gill said the financing gives the company the resources to complete the ongoing phase-I study of TL32711 and complete a separate phase I-II study of the compound.

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