Alkermes Inc. raised what was projected from its 2-million-share offering proposed in August, but didn't seethe appreciation of its stock during the registration periodthat many other biotechnology companies have in recentofferings.

The Cambridge, Mass., company said Thursday theshares were sold at $7 apiece, resulting in gross proceedsto Alkermes of $14 million. Alkermes' stock closed at$7.25 on Aug. 16, 1995, the day the shares wereregistered. Its stock (NASDAQ:ALKS) closed Thursdayat $7.00, up 13 cents.

Michael Landine, the company's senior vice presidentand chief financial officer, said Alkermes was pleasedwith the offering.

"We had intended it to be a modest-size deal," Landinesaid. "That's why we kept it at 2 million shares eventhough we were oversubscribed. We haven't sold stock inthe public market since 1991. We used this not only as anopportunity to raise funds and strengthen the balancesheet, but to re-present ourselves to the financialcommunity."

Alkermes reported having $25.3 million in cash and 13.6million shares outstanding on June 30, 1995. Since thenthe company has received $6 million related to acollaboration partnership with Schering-Plough Corp.and, through March 1996, can draw the remaining $8.2million from its partnership for the development of RMP-7.

Landine said analysts are projecting that Alkermes willburn $12.5 million in the year ending March 31, 1996. Hesaid without further collaborations, the company's cashshould take it into early 1998.

But Alkermes intends to have new collaborative dealsdone by then. Landine said the company is beginningbusiness-development activities for its RMP-7 (receptor-mediated permeabilizer) delivery technology, whichinvolves a peptide that has been shown to increasepermeability of the blood-brain barrier and allow passageof small molecules into the brain. RMP-7 acts by bindingto the a cell surface receptor on brain endothelial cells,triggering a brief relaxation of the tight cellular junctions.

The agent is in three Phase II studies, in combination withcisplatin, for the treatment of recurrent glioma, a type ofbrain cancer. Two are U.K. open-label studies and thethird is a double-blind placebo-controlled U.S. trial.Those studies should be completed by the end of 1996,Landine said.

He said Alkermes wanted to get additional data from theRMP-7 studies before seeking partners. Now thecompany will seek collaborations involving othercompounds and indications.

The $46 million in funding provided by a partnership,Alkermes Clinical Partners L.P., for development ofRMP-7 will be depleted by the end of March 1996.Alkermes will fund the program after then. Rights toRMP-7 can be bought back for the original $46 millionplus royalty considerations.

Alkermes already has three ongoing collaborations withits ProLease technology, which is designed for thesustained-release delivery of peptides and proteins.Landine said additional ProLease collaborations areexpected. n

-- Jim Shrine Staff Writer

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