By Randall Osborne

West Coast Editor

With its Thalomid (thalidomide) product headed for Phase III trials in multiple myeloma, and studies under way for other indications, Celgene Corp. surfed the high wave in biotech financing to raise $303 million in an offering of 3 million shares.

The company registered last month to sell 2 million shares in an offering expected to raise $130 million. (See BioWorld Today, Jan. 20, 2000, p. 1.)

Celgene, of Warren, N.J., is selling 2.48 million shares, and the remainder is being sold on behalf of Boston-based John Hancock Life Insurance Co. and its affiliates. Underwriters have an option to buy another 450,000 shares at the $101-per-share price, which would bring the proceeds from the financing to $348.45 million.

Stephen Brozak, an analyst with Vanguard Capital in New York, said the company and underwriters are under the "quiet period" rule of the SEC and could not comment.

Thalomid, approved for cutaneous manifestations of moderate to severe erythema nodosum leprosum (a debilitating condition associated with leprosy) and as maintenance therapy to prevent and suppress cutaneous manifestation recurrences, is being tested in clinical trials that are among 100 studies under way with Celgene products.

In addition to the Phase III trials of Thalomid for multiple myeloma, Phase III studies of the product against solid tumors are expected to begin the second half of this year, and it's being tested against advanced cancers, prostate cancer, glioblastoma multiforme and the bone marrow disorder myelodysplastic syndrome, among other indications.

Celgene acquired the exclusive worldwide rights for thalidomide as well as rights to its patents and technology from EntreMed Inc., of Rockville, Md., in December 1998.

The company will also use proceeds to boost its IMiD and SelCID development, and its chiral chemistry program, which includes Attenade (d-methylphenidate).

IMiDs, or immunomodulatory drugs, are novel structural analogues that Celgene designed and synthesized based on the biological activity and structure of Thalomid. IMiDs are designed to capture the ability of Thalomid to inhibit chronic overproduction of tumor necrosis factor-alpha (TNF-a), but in a more effective and safer manner. The compounds also are being tested for their effectiveness as anti-angiogenic agents.

SelCIDs, or Selective Cytokine Inhibitory Drugs, inhibit phosphodiesterase type 4 enzyme, the inhibition of which results in decreased TNF-a, and may have application against such diseases as rheumatoid arthritis, non-insulin-dependent diabetes, inflammatory bowel disease and systemic lupus erythematosus.

Attenade is the chirally pure version of the drug better known as Ritalin. Celgene has completed two pivotal efficacy trials of Attenade, and found it met all parameters for controlling the symptoms of attention deficit disorder and attention deficit hyperactivity in school-age children. The company expects to file a new drug application in the first half of this year.

In July, Celgene completed its second $15 million financing in 1999 as it placed convertible notes on very similar terms to the deal it closed the previous January.

Hancock and affiliates purchased $15 million in notes that can be converted into common stock at $19 per share, starting in one year. In January, the life insurance company purchased $15 million in notes that can be converted into common Celgene shares at $18 apiece. (See BioWorld Today, July 13, 1999, p. 1.)

J.P. Morgan & Co. is the book-runner of the offering, serving as co-lead manager with Prudential Vector Healthcare. U.S. Bancorp Piper Jaffray is acting as a co-manager, and the offering is expected to complete on Wednesday.

Celgene's stock (NASDAQ:CELG) closed Friday at $118.37, up $15.375.