National Editor

A pair of companies entered bought-deal financing arrangements: AnorMED Inc., to raise C$25.48 million (US$18.7 million), and Stressgen Biotechnologies Corp., which also plans to make a Canadian sale, to raise C$20 million.

AnorMED, of Vancouver, British Columbia, said it entered an agreement with a syndicate of underwriters led by Vancouver-based BMO Nesbitt Burns Inc., in which members have agreed to buy 5.2 million common shares from AnorMED and sell them to the public at $4.90 each.

The company's shares (TSX:AOM) closed Tuesday at C$4.88, down C56 cents, or 10.5 percent.

Underwriters have been granted an option to buy up to 1 million more shares, exercisable until 48 hours prior to the closing date, expected on or about Dec. 23.

AnorMED said proceeds will be used for general corporate purposes, as well as to fund research and clinical trials for its core programs. Those include AMD3100, a stem cell mobilizer in Phase II trials for cancer patients undergoing stem cell transplants and in a preclinical program for cardiac tissue repair in heart attack patients; AMD070, an HIV product in a Phase I study to evaluate its safety; and CCR5 entry inhibitor candidates, being sorted for the selection of a lead candidate against HIV infection.

Others in the syndicate include RBC Capital Markets in New York; Raymond James Ltd. in Vancouver; and Desjardins Securities Inc. in Montreal.

Stressgen, of San Diego, said it would use proceeds from its bought-deal financing to fund manufacturing and clinical development of its lead product, HspE7. The company made news a week ago when it restructured the terms of its deal focused on the recombinant fusion drug with Basel, Switzerland-based F. Hoffmann-La Roche Ltd. (See BioWorld Today, Dec. 3, 2003.)

The altered deal involves separate, parallel development of multiple indications for HspE7, which consists of heat-shock protein 65 from Mycobacteria bovis BCG fused to the protein E7, an antigen derived from human papillomavirus. Under the new arrangement, Stressgen's potential payments increase by $23 million to $227 million.

Stressgen's deal is with a syndicate of underwriters that has agreed to buy about 10.6 million units at a price of C$1.88 per unit, each consisting of one common share of Stressgen and one-half of one common share purchase warrant. Each whole warrant entitles the holder to buy one share at a price of C$2.44 on or before 36 months from the date of closing, which is expected to occur on or before Dec. 30.

Underwriters have the option to increase the size of the offering by about 10.6 million more units if they notify Stressgen 48 hours before closing. They also have the option, exercisable for a period of 30 days after closing, to acquire more units amounting to as much as 15 percent of the total sold at closing.

Proceeds also will be used for general corporate purposes. Stressgen's stock (TSX:SSB) closed Tuesday at C$1.72, down C17 cents.

Separately, the company said CFO Donald Tartre will be leaving the firm by mid-January for a job with an undisclosed biotechnology firm, and will be replaced by Gregory McKee, currently vice president of corporate development and strategic planning.