Pharma/Biotech Financing From Elsevier Business Intelligence

[Oxford BioMedica] speeds to disappointing IPO

Sun, 01 Dec 1996 00:00:00 -0500

Since underwriters failed to place all their shares, the new biotech [Oxford BioMedica] (gene therapy) netted only $7.35mm (UK4.4mm), rather than the $16.8mm it hoped for, in its IPO on London's AIM exchange for emerging companies. The company skipped the usual sequence of venture financing rounds and went straight to the public market OBM was set up to develop technology invented by Alan and Susan Kingsman (CEO and research director) at [Oxford U.], commenced operations only this year, raising seed funding in September. The company planned to spend the proceeds on laboratories, equipment, and facilities and to go forward with candidate product development. OBM owns 10 patent applications, stemming from the Kingsmans' research, for retroviruses, targeting vectors, and a therapeutic gene; and it plans to negotiate additional technology licenses from the university. Its target diseases: several cancers, HIV; cystic fibrosis; and Parkinson's.

[DiagnoCure] nets $11.8mm in Canadian IPO

Fri, 01 Nov 1996 00:00:00 -0400

[DiagnoCure] (cancer diagnostics and therapeutics company) completed its initial public offering, selling 4.02mm units consisting of one common share and one warrant to purchase one common share, at $2.96 (Cdn$4) each, and netting $11.8mm (Cdn$16mm). The company will use the proceeds to fund R&D and acquire complementary technologies, and for general corporate purposes. It was incorporated in 1994 to develop diagnostic and therapeutic products for genito-urinary and breast cancers. Thecompany's lead products are based on monoclonal antibodies discovered by Dr. Yves Fradet of the [Universite Laval], and licensed from that institution. DiagnoCure hopes to launch {ImmunoCyt}-1,a fluorescence-based immunocytological test for superficial bladder cancer, by the second quarter of 1997, and it has several cancer therapeutic products in development as well.

[American Biogenetic Sciences] raises $9mm in private placement

Tue, 01 Oct 1996 00:00:00 -0400

Publicly-held [American Biogenetic Sciences] completed a $9mm private placement of convertible debentures. The offering raises ABS's cash and marketable securities on hand to about $16mm. The company will use the proceeds for general capital purposes, including clinical and diagnostic testing, sales and marketing, R&D and to purchase new equipment. ABS's core technology includes a patented antigen-free system that allows the generation of highly-specific monoclonal antibodies that are unattainable by present technologies. ABS has alliances with [Abbott], [Hoffmann-La Roche] and the [Medical Research Council] of Great Britain.

[BioCryst] nets $21.6mm in follow-on of 2.3mm common shares

Sun, 01 Sep 1996 00:00:00 -0400

[BioCryst Pharmaceuticals] (structure-based drug design) completed a follow-on offering of 2.3mm common shares at $10 each,including the underwriter's overallotment, raising net proceeds of $21.6mm. The company is designing novel small molecule drugs to closely fit the active site of each target protein. Three of its programs, all based on its purine nucleoside phosphorylase (PNP) inhibitor {BCX-34}, have advanced to the clinical testing stage. These are treatments for cutaneous T-cell lymphoma (topical formulation in Phase III and oral in Phase I/II); atopic dermatitis (Phase I/II); and psoriasis (topical-Phase III and oral- Phase I/II). BioCryst's strategy is to provethat blocking PNP inhibits T-cell proliferation, then use the information from development of the topical formulation as foundation for systemic drugs to address additional indications that can similarly be controlled via immune mechanism inhibition.

[Structural Bioinformatics] raises $2.5mm in first round

Sun, 01 Sep 1996 00:00:00 -0400

[Structural Bioinformatics Inc.], a San Diego-based start-up which is developing software to convert gene sequences into three-dimensional protein structures, raised $2.5mm in its first round. Both US and European investors participated, and the company expects more funding by mid-October from oversubscriptions. SBI's technology uses high-speed algorithms to convert gene sequence data into 3-D protein drug targets and then locatesurface features that show promise as sites for small molecule drugs. It recently signed a deal with [Texas Biotechnology Corp.], where TBC took a 10% equity stake in exchange for access to SBI's database.

[Triangle] nets $41.1mm in 4.5mm share IPO

Sun, 01 Sep 1996 00:00:00 -0400

[Triangle Pharmaceuticals] (1995 start-up, developing antivirals and anticancer drugs) completed its initial public offering of 4.5mm common shares, including the overallotment, netting $41.1mm. The company will use the proceeds to fund its drug development programs, for general corporate purposes and as working capital. Although little more than a year old, Triangle has on its side the reputation of its founding executives, DavidBarry, M. Nixon Ellis and Phillip Furman; all were formerly at Wellcome and involved in that company's successful AIDS drug AZT. Triangle's current portfolio includes five licensed drugs, and options on two others; four are anti virals that show promise against HIV (and two also against hepatitis B); and the other three are anticancer, herpes, or psoriasis treatments.

[Receptagen] announces private placement

Sun, 01 Sep 1996 00:00:00 -0400

[Pharmaceutical Consultants and Investments] has cancelled its two-tranche private placement totaling $19.9mm(Cdn$27.32mm; 30.94mm shares at Cdn$0.883 per share) to [Receptagen Ltd.] (treatments for cancer and proliferative cell disorders). The first phase, an immediate cash injection, consists of Cdn$5mm in debentures that will automatically convert to common shares once shareholders approve the financing; the remaining Cdn$22.32mm will be a common share placement. Receptagen will use the funds to expand its drug distribution division, spin off its drug development subsidiaries, advance its {Growth Blocker} drug (destroys cancer cells), and perform clinical testing of {Coenzyme Q10} (treatment forAIDS symptoms) products.

[CDR Therapeutics] raises $6mm in seed round

Sun, 01 Sep 1996 00:00:00 -0400

[CDR Therapeutics], a Seattle start-up focusing on small molecules that mimic monoclonal antibodies, has raised $6mm in its seed round of venture capital funding. Participants in the round included the Sprout Group, Alta Partners, Sofinnova, and Arch Partners; Phillipe Chambon, MD, PhD and Jean Deleage of Alta Partners will join CDR's board of directors. CDR exclusively licensed the small molecule technology from the [University of Pennsylvania School of Medicine], where it was developed by a team led by Mark Greene, MD, PhD, with the assistance of researchers from the [Wistar Institute] and [Colorado State University].

[Xenova] forms US subsidiary, [MetaXen]

Sun, 01 Sep 1996 00:00:00 -0400

[Xenova] and three individual founders provided $1mm in capitalization to form a new drug discovery company called [MetaXen]. Xenova will keep a majority ownership in the company and provide additional funding in the future. In September 2000, based on milestones, MetaXen shareholders will be able to trade their shares and options for shares and options of Xenova stock. The California-based MetaXen will expand Xenova's early drug discovery leads, establish a structure-based drug design group and an {in vitro} metabolism drug group to create high-throughput assays, and groups to apply genomics and bioinformatics to identify new drug targets.

First venture round by gene expression company [Pharmagene]

Sun, 01 Sep 1996 00:00:00 -0400

UK biotech start-up [Pharmagene] raised $2.18mm ( 1.4mm) in its first financing round. The company is studying the expression and function of genes and their products in human tissues. Initial investors are 3i, Abacus Nominees, and the company's two founders, Gordon Smith-Baxter and Robert Coleman, who came from SmithKline Beecham and Glaxo Wellcome. Pharmagene gets the human material for its research from tissues that would otherwise be destroyed: unused donated organs and tissues removed in surgery. The company is generating revenues by doing contract research, providing several drug companies with preclinical data for use in drug discovery. Its databaseof human gene function in health and disease states is called {LifeBase}.

[Seragen] raises $5mm in private placement

Sun, 01 Sep 1996 00:00:00 -0400

Publicly-traded [Seragen] (cancer and dermatology drugs) raised $5mm in a private placement of 5,000 shares of Series C convertible preferred stock. The stock is convertible to common at the holder's option at the lesser of Seragen's closing price on Sept. 27, 1996 or 73% of the close for five days prior to the conversion date. This is Seragen's second private placement this year; it raised $3.8mm in a similar placement last June.

[Medicis Pharmaceutical] raises $78mm in FOPO

Sun, 01 Sep 1996 00:00:00 -0400

[Medicis Pharmaceutical] (dermatology and skin care) has netted $78mm in a follow-on offering of 1.85mm shares at a price of $45 per share. MDRX markets its acne and skin disorder treatments directly to dermatologists but out-sources non-marketing functions, such as laboratory research, manufacturing and warehousing. Its prescription acne line includes {Dynacin} (minocycline),{Triaz} (benzoyl peroxide and glycolic acid), topical {Theramycin Z}, and {Benzashave}, a topical treatment for acne and bacterial inflammation associated with shaving. OTC products include the {Esoterica} line used to correct minor skin discoloration problems, and {Theraplex} to treat problems of severe dry skin. Proceeds will be used for expansion of marketing and sales, licensing or acquisition of formulations, technologies, products or businesses, R&D, and general corporate purposes.

[Innovir] raises $2mm in private placement

Sun, 01 Sep 1996 00:00:00 -0400

With less than two months of cash left and its stock trading at $1.21 per share, [Innovir Laboratories] has grossed $2mm from the sale of 4mm new shares and class C warrants exercisable at $.50 per share to The Aries Fund and The Aries Domestic Fund. Innovir will file a shelf registration upon closing. For their 35% equity purchase, the Funds will appoint two Directors to Innovir's board. The Funds also receive an option to purchase 2mm shares of common and 2mm class C warrants exerc $.50 per share for a total option purchase price of $1mm. Fully exercised, the Funds would own just over 62%. The company is developing External Guide Sequences (EGSs) which are small oligonucleotides that can bind to disease-causinating the bad section through the cleaving action of RNase P.

[Transcend Therapeutics] withdraws IPO

Sun, 01 Sep 1996 00:00:00 -0400

[Transcend Therapeutics] (formerly Free Radical Sciences; developing treatments for diseases caused by oxidative stress) filed for an IPO of 2mm shares at an assumed price of $13 each, looking to net $24mm. The company plans to use $12mm of the proceeds to fund clinical development of its lead product {Procysteine}, which completed two Phase II trials for adult respiratory distress syndrome; Phase III trials should begin first quarter of 1997. {Procysteine} is a method of delivering the amino acid cysteine into cells and replenishing glutathione, which in turn aids the body in inactivating reactive oxygen species (ROS), a by product of the inflammation process. In certain severe inflammatory disorders, excessive ROS production can cause severe tissue damage.

[Introgen Therapeutics] withdraws 3.2mm share IPO

Sun, 01 Sep 1996 00:00:00 -0400

[Introgen Therapeutics] (cancer gene therapy) has registered a 3.2mm share IPO. [Rhone-Poulenc Rorer] will purchase $6mm worth of Common Stock at the public price in this offering pursuant to an Oct. 94 deal. Introgen is developing two categories of gene cancer therapy products: gene replacement product based on the p53 tumor suppressor gene and gene blocking products which neutralize the activity of a mutant K-ras oncogene. Missing or dysfunctional p53 tumor suppressor genes are the single most common genetic alteration in cancer and occur in over 50% of human cancers. The company is currently testing its p53 products in Phase I/II trials of its lead products for the treatment of non-small cell lung cancer and head and neck cancer.

[NaPro BioTherapeutics] nets $14.6mm in follow-on public offering

Thu, 01 Aug 1996 00:00:00 -0400

[NaPro BioTherapeutics] (pharmaceuticals from natural products) completed a follow-on offering of 1.79mm common shares (1.6mm plus overallotment of 190,000) at $8.75 each, netting $14.6mm. NaPro produces paclitaxel, a naturally occurring anti-cancer agent from the yew tree. [Bristol-Myers Squibb] sells the only FDA-approved paclitaxel (obtained from another source) although NaPro has licensed its formulation to [Ivax]' [Bake Norton Pharmaceuticals] and [F.H. Faulding]. Ivax filed an IND with the FDA in 1994, the same year Faulding began marketing generic paclitaxel in Australia. NaPro extracts paclitaxel and taxanes from renewable sources such as needles and limbstock, rather than from the bark of the tree, avoiding the need to fell the tree. The proceeds will be used to fund capital expenditures; fund development of yew tree plantations; and general corporate purposes.

[Pharmavene] (advanced drug delivery) withdraws IPO

Thu, 01 Aug 1996 00:00:00 -0400

[Pharmavene] (advanced drug delivery) filed for an IPO of 2.2mm common shares at an expected price of $10-$12 per share. Estimated proceeds of $21.7mm will be used for product development. Lead product {Carbatrol} is a twice-daily formulation of epilepsy drug carbamazepine (which is currently administered 3-4 times per day). Pharmavene has licensed {Carbol} to [Athena Neurosciences]. The company is developing 11 products which use a wide range of technologies to achieve such goals as oral delivery of peptides, controlled-release delivery and transmucosal oral delivery. The company is using the latter method to deliver migraine drug DHE, which is now only available by injection. In Phase III is a sustained-release selegiline, for cocaine withdrawal and Parkinson's disease.

[Amarillo Biosciences] completes IPO, raising proceeds of $8.17mm

Thu, 01 Aug 1996 00:00:00 -0400

[Amarillo Biosciences], development stage company developing low-dose oral natural interferon alpha, completed its initial public offering of 2mm shares of stock at $5 per share, raising net proceeds of $8.17mm. The company plans to use about $6.4mm of the proceeds for R&D purposes, $1mm for repayment of debt to [Hayashibara Biochemical Laboratories], a privately-owned Japanese holding company which owns 25% of Amarillo, and remaining proceeds foreneral corporate purposes. Amarillo owns eleven patents relating to low dose oral natural interferon, and is focusing primarily on treatment for oral mucositis and Sjogren's syndrome. Hayashibara manufactures and supplies oral interferon alpha exclusively to Amarillo for human applications worldwide, excluding Japan. Oral interferon alpha will be used as an alternative to injectable interferon alpha, since it produces fewer side effects.

[Agouron] raises $70.5mm in disappointing follow-on offering

Thu, 01 Aug 1996 00:00:00 -0400

Despite a 25% reduction in its stock price, [Agouron] completed a follow-on offering of 2.5mm shares of common stock at $30 per share, raising net proceeds of about $70.5mm. When the company issued the preliminary prospectus, stock was trading at $42. The company plans to use approximately $40mm of the proceeds for the commercial launch of {Viracept} (nelfinavir mesylate), an orally administered HIV protease inhibitor in Phase III trials, $20mm for {Viracept} development and clinical testing and remaining proceeds for sales and marketing, working capital and general corporate purposes. Agouron is developing {Viracept} in collaboration with [Japan Tobacco] and has exclusive marketing rights in the US, Canada and Mexico. Agouron is also developing {Thymitaq}, in Phase III trials for treatment of malignant solid tumors, and entered into a collaborative development deal with [Hoffmann-La Roche], which will fund 80% of the future development costs of the product.

[Anergen] raises $9.5mm in follow-on offering of 3.5mm shares

Thu, 01 Aug 1996 00:00:00 -0400

[Anergen] (treatment of autoimmune diseases) completed a follow-on offering of 3.5mm shares of common stock at $3 per share, raising net proceeds of approximately $9.5mm. Anergen originally hoped to net $18.9mm from 4mm shares at $5.25 a share. The company plans to use about $7.6mm of the proceeds for R&D, and remaining proceeds of about $1.9mm for general corporate purposes. Anergen is developing two compounds, {AnergiX} and {AnervaX} (in Phase I trials for multiple sclerosis and Phase II trials for treatment of rheumatoid arthritis, respectively). The {AnergiX} technology selectively destroys or inactivates the T cells implicated in the disease while the {AnervaX} technology stimulates the immune system to produce antibodies that stop destructive T-cells. Anergen went public in 1991 at $8 per share, and for a while its stock was trading as high as $31.50.

[Sparta Pharmaceuticals] raises $12.77mm in private placement

Thu, 01 Aug 1996 00:00:00 -0400

Publicly-traded [Sparta Pharmaceuticals] (cancer, cardiovascular and inflammation therapeutics) grossed $12.765mm in a private placement of 127.65 units. Each unit was priced at $100,000 and consists of 10,000 shares of convertible preferred stock and warrants to purchase 66,667 common shares; both the preferred shares and the warrants have a conversion price of $1.50 per share. The company will use the proceeds to fund trials of three products in its portfolio, all of which have approved INDs--{Spartaject} bulsufan (a chemotherapeutic drug delivery method; RII retinamide (for treating myelodysplastic syndromes) and {LADD} 5-P (liver associated disease/delivery technology).

[T Cell Sciences] nets $10mm in follow-on

Thu, 01 Aug 1996 00:00:00 -0400

[T Cell Sciences] (immune system, anti-inflammatory and cardiovascular therapeutics) completed a follow-on offering of 5mm common shares at $2.1875 per share, netting $10.1mm. T Cell will use the proceeds to fund clinical trials, for manufacturing supplies for its lead drug TP10 (in Phase II trials) and for general corporate purposes. TP10 is a complement inhibitor, designed to interrupt the complement response,which can cause severe inflammation in organ transplant rejection, cardiac reperfusion, and other disorders. The company had filed the offering as a two-year shelf registration a month ago, but decided that despite the current down market for biotech stocks, the demand was there to offer all of the shares now. T Cell recently sold most of its diagnostics business (with the exception of its {Trax} technology), to concentrate on its therapeutic platforms.

[MGI Pharma] nets $5.6mm in 1.2mm share follow-on offering

Thu, 01 Aug 1996 00:00:00 -0400

[MGI Pharma] (MOGN--in-licensing therapeutics for niche markets) completed a best efforts offering of 1.2mm shares of common stock, netting $5.6mm. The proceeds will be used to develop and market its products and fund the acquisition or license of additional products and general corporate purposes. MOGN focuses primarily on products to treat cancer or that improve the quality of life of cancer patients. It currently has two marketed products: {Didronel} IV infusion, and {Salagen} (pilocarpine) tablets for radiation-induced xerostomia (dry mouth) associated with head and neck cancer. It plans to submit a supplemental NDA for {Salagen} as a treatment for xerostomia resulting from Sjogren's syndrome, a chronic autoimmune system disease experienced by many patients with rheumatoid arthritis and other autoimmune diseases.

[Transkaryotic Therapy] completes 2.5mm share IPO, nets $35mm

Thu, 01 Aug 1996 00:00:00 -0400

[Transkaryotic Therapies] (gene therapy company, founded in 1988) was successful at its second attempt at an initial public offering (the first was in 1993), selling 2.5mm common shares at $15 each, and netting $35mm. The company will use the proceeds to fund research and development, and for other general corporate purposes. Its major corporate partner, [Hoechst Marion Roussel], will buy an additional $5mm in equity concurrent with this offering. The companies have two alliances (signed in 1994 and 1995) which have a combined potential value of $125mm to TKT. Its lead program concerns the large-scale production of erythropoietin (EPO), expected to enter clinical trials early next year. TKT uses its {Gene Activation Technology}, which doesn't require the cloning of genes or their insertion into non-human cell lines, to produce the drug. This project places it in direct competition with EPO giant [Amgen].

[Magainin Pharmaceuticals] raises $12mm in private placement

Thu, 01 Aug 1996 00:00:00 -0400

[Magainin Pharmaceuticals] has raised $12mm in a private placement of 1.55mm shares of common stock together with warrants to purchase an additional 1mm shares exercisable at $8.48 per share. The financing was led by Vector Later-Stage Equity Fund. MAGN is focusing on anti-cancer and anti-infective compounds isolated from the host-defense system of animals. MSI-78 is currently in Phase III trials for topical treatment of infections associated with surgical wounds, burns and topical ulcers. MAGN is also developing therapeutics in the areas of pulmonary and allergic disorders and is expanding its research into the genomic basis of asthma.

[HemaCare] raises $1.2mm in private placement

Thu, 01 Aug 1996 00:00:00 -0400

[HemaCare] has raised $1.2mm in the private placement of 1.2mm shares. The proceeds will enable HEMA to maintain listing on the NASDAQ SmallCap market. HEMA provides blood products and services to hospitals, and is expanding its operations to provide blood management programs in various health care markets.

[Ilex Oncology] raises $10mm in private placement

Thu, 01 Aug 1996 00:00:00 -0400

[Ilex Oncology] (spinoff of [Cancer Therapy and Research Center]) has raised $10mm in the private placement of 2.3mm shares of series C convertible preferred stock. This round included current investors Boston Capital Ventures, Hambro's Cross Atlantic Partners, Advent International, McCombs Enterprises and first time investor Perseus. Ilex expects to file an NDA for mitoguazone dihydrochloride, its lead anti-cancer compound, later this year. Ilex has six other cancer compounds in clinical trials. The NDA will be filed for refractory or relapsed AIDS-related non-Hodgkin's lymphoma. It is also being evaluated for pancreatic and non-small cell lung cancers, the marketing rights for which were licensed to [Sanofi Winthrop] in 1992.

[Cel-Sci] raises $5mm in private placement

Thu, 01 Aug 1996 00:00:00 -0400

[Cel-Sci] (immune-based therapeutics) has raised $5mm in a private placement of Series B preferred shares to new and already-existing institutional investors. The preferred shares are convertible into Cel-Sci common shares prior to August 1998. With the proceeds of the offering, Cel-Sci has a $10mm cash position, enough to fund its operations for the next two years.

[National Ctr for Genome Rsch] spins off [Molecular Informatics]

Thu, 01 Aug 1996 00:00:00 -0400

The [National Center for Genome Research] (NCGR), formed in 1994 by the federal government, is spinning off [Molecular Informatics], a for-profit company, to market computer software to manage genetic data. NCGR has provided initial funding and staffing of 30, and anticipates owning 60-70% after a corporate partner is found. MI has licensed two software products from NCGR in exchange for license fees and royalties. Both products assist in managing the wealth of data created by efforts to sequence the human genome.

[Interneuron]'s [Progenitor] withdraws IPO

Thu, 01 Aug 1996 00:00:00 -0400

[Interneuron]'s majority-owned subsidiary [Progenitor] (developmental biology and genomics) has filed for an IPO of 2.5mm shares at a proposed price of $11-13 per share. Last month Interneuron raised $117mm in a follow-on offering. Progenitor has filed a patent application for the B219 leptin receptor, involved in hematopoiesis, reproduction and obesity. It has an ongoing T7T7 (nonviral, naked DNA plasmid gene delivery system) commercialization collaboration with [Chiron] in the areas of tumor ablation, restenosis and infectious disease. Progenitor also has a two-stage license agreement with [Novo Nordisk]'s [ZymoGenetics] subsidiary to purify, clone and sequence a BFU-e red blood cell growth factor and then conduct research to establish the biological function of the growth factor. Interneuron will hold approximately 51% of Progenitor after the offering (80% now).

[Ergo Science] nets $33mm in follow-on

Thu, 01 Aug 1996 00:00:00 -0400

[Ergo Science] (novel biotech treatments for metabolic disorders) netted $32.7mm in a follow-on offering of 2.88mm common shares, including the overallotment, at a price of $12.25 per share. With its 40 filed or issued US patents related to temporal neuroendocrine regulation, Ergo is designing drugs to be taken orally at specific times of the day. Its lead product is {Ergoset}, an oral bromocriptine (dopamine agonist previously approved for Parkinson's disease and other conditions); the NDA filing is expected by mid-1997 for non-insulin dependent diabetes, a disease often linked to obesity. {Ergoset} may prove to be effective against obesity, as well, since dopamine, a neurotransmitter, plays a role in the body's metabolism of fat.

[ArQule] completed IPO of 2.875mm shares raising proceeds $31.3mm

Thu, 01 Aug 1996 00:00:00 -0400

Three-year old rational drug design company [ArQule] completed its IPO of 2.875mm shares of common stock (including an overallotment of 375,000 shares) at $12 a share, raising net proceeds of about $31.3mm. ArQule increased the offering from 2mm shares. ArQule plans to use the proceeds for R&D, working capital and general corporate purposes. ArQule believes it now has enough cash on hand to last through 1998. The company's technology integrates structure-guided drug design, high-speed parallel chemical synthesis and information technology to identify and optimize drug candidates. ArQule currently has collaborations underway with [Solvay], [Abbott], [Pharmacia Biotech] and most recently with [Aurora Biosciences].

[Titan Pharmaceuticals] nets $14mm in private placement

Thu, 01 Aug 1996 00:00:00 -0400

Publicly-traded [Titan Pharmaceuticals] (cancer and central nervous system therapeutics) received net proceeds of $14mm in a private placement of 1.54mm units consisting of one common share and one class A warrant. The company will use the proceeds to fund research and development and for general corporate purposes. It operates through five subsidiary companies: [Ansan], [Igenex], [Theracell], [ProNeura] and [Ascalon].

[MedImmune] raises $60mm in 7% notes

Thu, 01 Aug 1996 00:00:00 -0400

[MedImmune] has raised $60mm from the private placement to institutional buyers and accredited investors of 7% convertible subordinated notes due 2003. The notes are convertible into common shares at $19.68 90 days after issuance. The proceeds will be used for general corporate purposes and funding capital expenditures associated with the construction of a manufacturing facility. The facility would be used to produce MI's two marketed products, {RespiGam}, approved for respiratory syncytial virus and {CytoGam}, used to prevent cytomegalovirus in kidney transplant patients. {RespiGam} is co-promoted in the US by [American Home Products], and sold in the rest of the world by [Baxter Healthcare]; {CytoGam} by MI. The facility could also produce two monoclonal antibodies in late stage development for RSV and organ transplant rejection. MI also has a preclinical Lyme disease vaccine.

[Hexagen] secures $11mm in first round

Thu, 01 Aug 1996 00:00:00 -0400

[Hexagen] (functional genomics) has raised $11mm (UK6.75mm) in its first round of financing from investors Abingworth, New Enterprise Associates, and Schroder Ventures. The proceeds will be used to establish operations and develop its genomics technology. Hexagen utilizes mouse genetics as a model for analyzing the relationship between human gene function and disease. Hexagen is able to create variants in a gene of interest, mimicking the changes that lead to the onset or progression of human disease.

[ABT Global Pharmaceutical] raises $12.9mm in IPO of 3mm shares

Thu, 01 Aug 1996 00:00:00 -0400

[ABT Global Pharmaceutical Corp.] (developing pharmaceutical versions of natural medicines) completed its initial public offering of 3mm shares of common stock at $5 per share, raising net proceeds of approximately $12.9mm. ABT plans to use about $4mm of the net proceeds for clinical testing of HIV therapeutics {T4GEN} (Phase I) and {n-T4GEN} (Phase II); approximately $750,000 to manufacture {T4Gen} and {n-T4Gen}; $3.5mm for R&D; $4.15mm for marketing and newties; and remaining proceeds for overhead and salaries of additional personnel. ABT uses the {fingerprinting technology}, which was developed by Dr. Tasneem Khwaja of the [University of Southern California], and licensed to ABT. The technology enables ABT to identify active components in natural medicines and measure the component's bioactivity and effectiveness. In addition to developing drugs, ABT plans to license the {fingerprinting technology} to third parties.

[Scriptgen] raises $18.4mm in private placement

Mon, 01 Jul 1996 00:00:00 -0400

[Scriptgen Pharmaceuticals] (gene expression regulation) raised $18.4mm in a private placement of Series C preferred stock. Investors included CW Group, Atlas Venture, Accel Partners, New Enterprise Assoc., Advent Intl. and a major Swiss investment firm. Proceeds will help fund the company's drug development programs. Scriptgen, founded in 1992, uses gene transcription work by a University of Massachusetts and an MIT scientist. It develops proprietary technology used for regulating gene expression in order to identify and develop broad spectrum antifungal and antibacterial agents effective against resistant organisms. The company also recently announced collaborations with [Hoffmann-La Roche] and [Boehringer Ingelheim].

[La Jolla Pharmaceuticals] raises $10mm in offering

Mon, 01 Jul 1996 00:00:00 -0400

[La Jolla Pharmaceuticals] (therapeutics for antibody-mediated diseases) raised $10mm in follow-on offering of 2.1mm common shares at $5 per share. LJP will use the funds to support R&D of its lead drug for lupus, LJP 394, and other research programs for antibody-mediated disorders. LJP recently reclaimed worldwide rights to LJP 394 when it terminated a potential $40mm venture with [Leo Pharmaceutical], protesting Leo's decision to proceed only slowly with the development of the product. Lupus nephritis is associated with antibodies to double-stranded DNA; these antibodies can be found in 90% of untreated lupus patientsand are believed to cause kidney disease--the major killer of lupus patients. LJP 394 targets specific B cells that produce the antibodies. The offering fell short of expectations; originally, LPJ registered to sell 3mm shares at $6.75-$7.00.

[Vertex] nets $77.5mm in follow-on offering

Mon, 01 Jul 1996 00:00:00 -0400

[Vertex Pharmaceuticals] (rational drug design) has completed a follow-on offering of 3.45mm shares, including greenshoe, at $24 per share, netting $77.5mm. Vertex plans to use the proceeds for R&D, clinical trials, and general corporate purposes. Its lead products include VX-478, a protease inhibitor under development with [Glaxo Wellcome] for the treatment of HIV infection; and VX-710, a Phase II compound for multiple drug resistance in cancer patients.

[Shaman] grosses $3.3mm in private placement

Mon, 01 Jul 1996 00:00:00 -0400

Publicly-traded [Shaman Pharmaceuticals] (therapeutics derived from tropical plants) grossed $3.3mm in a private placement of 400,000 shares of series A convertible preferred stock at $8.147 per share. The investor also received a six-year warrant to purchase 550,000 shares of common stock at a price of $10.184 per share. The preferred shares are convertible into common stock at the earlier of either the investor's option, orimmediately following any 60 trading day period in which the company's common stock has consistently traded higher than $8.147, or after July 23, 1999. Shaman plans to start a Phase III trial this fall for its genital herpes treatment, {Virend}.

[Immusol] withdraws 3mm share IPO

Mon, 01 Jul 1996 00:00:00 -0400

[Immusol] (ribozyme gene therapy and ribozyme-mediated gene functional analysis) registered an IPO of 3mm shares priced in the $9-11 range but later withdrew the filing. The proceeds were to be used to fund research and development programs. [Immusol] (ribozyme gene therapy and ribozyme-mediated gene functional analysis) has registered an IPO of 3mm shares priced in the $9-11 range. The proceeds will be used to fund research and development programs. Immusol plans a Phase I clinical trial later this year with its lead compound, {HIVase I}, being developed through a collaboration with [Pfizer] for the treatment of HIV-infected individuals. {HIVase I} utilizes retroviral vectors to deliver two of the Company's proprietary HIV inhibitory ribozyme genes to cells {ex vivo} which are then returned to the patient. Ribozymes are naturally ocurring molecules which can be engineered to cleave and inactivate DNA molecules and theircorresponding proteins. The company also has three other ribozyme gene therapy products in earlier stages for the prevention of coronary restenosis and the treatment of hepatitis C and hepatitis B viral infections.

[Molecular Biosystems] raises $30mm in 3.6mm share FOPO

Mon, 01 Jul 1996 00:00:00 -0400

[Molecular Biosystems] (ultrasound imaging agents) has raised $30mm in a 3.6mm share follow-on offering. Proceeds will be used for R&D activities, including preclinical and clinical studies, and general corporate purposes. MB's first product, {Albunex}, an ultrasound contrast agent approved for marketing by the FDA, and its second generation product, {FS069}, currently in Phase III clinical trials to evaluate cardiac function and in Phase II clinical trials to evaluate myocardial perfusion, consist of human albumin microspheres. The microspheres are injected intravenously into the bloodstream, enhancing the visualization of organs and structures containing blood. The Company has granted [Mallinckrodt] worldwide exclusive marketing rights to {Albunex} and {FS069}, excluding territories not licensed to [Shionogi] and [Nycomed Imaging] (Japan, Taiwan and South Korea; Europe, the former Soviet Union, Africa, the Middle East & India respectively).

[Immune Response] withdrew 2.5mm share FOPO

Mon, 01 Jul 1996 00:00:00 -0400

[Immune Response], founded by the late Dr. Jonas Salk and focused on HIV, autoimmune disease, gene therapy and cancer, filed, but subsequently withdrew, a 2.5mm share follow-on offering. IMNR withdrew the offer citing poor market conditions. The company's 17.1mm outstanding shares, which had been trading around $12.50 per share at the time of the offering, are currently trading at $7.50. IMNR's lead product, {Remune}, is avaccine designed to stimulate the patient's immune system against HIV. IMNR is enrolling up to 3,000 HIV-infected participants for a Phase III trial in the US, and as many as 10,000 HIV-infected patients for a Phase II trial in Thailand inconjunction with partner [Trinity Medical]. IMNR has Phase II T-cell receptor compounds for rheumatoid arthritis and psoriasis, and preclinical gene therapy products for cardiovascular and hemophilia.

[Hemispherx Biopharma] raises $6mm in private placement

Mon, 01 Jul 1996 00:00:00 -0400

[Hemispherx Biopharma] has raised $6mm from the sale of series D preferred stock, convertible into common, to a single institutional investor. The proceeds will be used to fund inventory expansion of its lead product, {Ampligen}, being developed for the treatment of various chronic viral diseases and immune disorders. These disorders include chronic fatigue, immune dysfunction syndrome, HIV and hepatitis.

[Molecular Geriatrics] raises $7.2mm privately

Mon, 01 Jul 1996 00:00:00 -0400

[Molecular Geriatrics] (diagnostics and therapeutics for Alzheimer's) has raised $7.2mm in a private offering of 3.6mm shares of preferred convertible shares. The proceeds will be used to complete the development of its diagnostic to detect Alzheimer's disease in cerebrospinal fluid and to advance the R&D of its Alzheimer's therapeutic. MG licensed [Pharmacia & Upjohn] rights to its Alzheimer's disease associated proteins assay to screen compounds P&U is developing for treating Alzheimer's disease.

[Protein Delivery] raises $7mm in private debt