Zonagen Inc., which researches and develops products addressing the human reproductive system, has completed a public offering of 2.25 million shares of common stock at $30 per share, raising a total of $67.5 million.

In addition, Zonagen, of The Woodlands, Texas, has granted underwriters Volpe Brown Whelan & Co. L.L.C. and Raymond James & Associates Inc. an option to purchase up to 337,500 additional shares to cover overallotments.

Zonagen has recently completed two pivotal Phase III clinical trials in the U.S. of its lead product, Vasomax, an oral treatment for male erectile dysfunction. Based on these results, the company believes the product will improve erectile dysfunction, intercourse success rates and overall sexual experience for a significant percentage of impotent men.

Zonagen is also engaged in the research and development of a therapy for female sexual dysfunction and new approaches to contraception, including zona pellucida-based vaccines, in collaboration with Schering AG, of Berlin.

Other programs target treatments for urological diseases, such as benign prostatic hyperplasia and prostate cancer, and development of an adjuvant to enhance the effectiveness of vaccines.

Vasomax delivers phentolamine mesylate, which has been approved by the FDA for treatment of hypertension and for use in the diagnosis of certain tumors of the adrenal gland.

Zonagen's stock (NASDAQ:ZONA) closed Tuesday at $30.750, down $1. — Frances Bishopp