Staff Writer

After scrapping plans for an initial public offering on Nasdaq, Australian-listed specialty dermatology company Peplin Inc. plans to raise $24 million in a private placement of stock and warrants.

The company is selling about 1.3 million units for $18.14 each. Each unit consists of three shares of common stock and one four-year warrant to purchase an additional share of common stock for $7.86.

The pricing is equivalent to A35 cents (US30 cents) per CHESS Depositary Interest (CDI), representing a two percent discount to the five-day, volume-weighted price of Peplin's CDIs.

The CDIs (ASX:PLI) closed at A42 cents on Tuesday.

Peplin spokespersons were not available to comment, but the company said in its press release that proceeds will be sufficient to fund Phase III trials of Peplin's lead drug, PEP005 (ingenol mebutate), for actinic keratosis (AK) of both the body and head.

AK, is a skin condition characterized by lesions and can be an early sign of skin cancer. In Phase II trials, PEP005 was well tolerated and resulted in clearance of AK lesions on the body and head.

Peplin plans to start a Phase III trial for nonhead lesions in the third quarter. The randomized, double-blind, 250-patient study was designed under a special protocol assessment with the FDA and will compare PEP005 administered at a concentration of 0.05 percent to a vehicle gel. The primary endpoint is the complete clearance rate of nonhead AK lesions.

For lesions of the head, Peplin is conducting a Phase IIb trial and expects results in the first quarter of 2009. Pending positive data, the company plans to begin a Phase III trial for head lesions later in the year. Both the head and nonhead Phase III trials, as well as supportive safety and other studies, will be used to back a new drug application filing in mid-2010.

PEP005 is a small molecule derived from the sap of Euphorbia peplus, commonly known as petty spurge or radium weed. In addition to AK, Peplin is studying the drug in Phase II trials for superficial basal cell carcinoma and in preclinical studies for leukemia and bladder cancer.

While PEP005 moves through the clinic, Peplin is expanding its pipeline through the acquisition of Emeryville, Calif.-based Neosil Inc. In exchange for $6.7 million in stock, Peplin will get Neosil's Phase II hair growth product and early stage antimicrobial agent for acne.

Both the acquisition and the private placement are subject to shareholder approval. A shareholder meeting will be held in October.

If both transactions are approved, Peplin said its pro-forma cash position as of June 30 would be $56 million.

In other financing news:

• Acorda Therapeutics Inc., of Hawthorne, N.Y., said underwriter Deutsche Bank Securities Inc. fully exercised the overallotment option associated with Acorda's previously announced public offering. Including the overallotment, the offering generated gross proceeds of $131.1 million through the sale of 4.6 million shares for $28.50 per share. Those proceeds will support a new drug application filing in the first quarter of 2009 as well as premarketing activities for Fampridine-SR, a drug intended to improve walking ability in patients with multiple sclerosis. (See BioWorld Today, Aug. 8, 2008.)

• F2G Ltd., of Manchester, UK, raised £6.3 million (US$11.7 million) in a private equity financing. The round was led by BankInvest Group, of Copenhagen, Denmark, and included participation by Merifin Capital, Astellas Venture Management and K Nominees. Proceeds will support preclinical development of FG3622, a small-molecule, systemic antifungal drug.

• Salix Pharmaceuticals Ltd., of Raleigh, N.C., priced its offering of $55 million aggregate principal amount of 5.5 percent convertible senior notes due 2028 to institutional buyers. Salix also granted an option to the initial purchasers to buy up to an additional $5 million to cover overallotments. The company intends to use the net proceeds to fund potential product acquisition or in-licensing opportunities, to develop and commercialize product candidates and new indications for rifaximin and to provide ongoing working capital and for general corporate purposes. The offering is expected to close Friday.