Italian firm Eurand priced its initial public offering, grossing $112 million through the sale of 7 million shares at $16 apiece.

The Milan-based company, incorporated in the Netherlands, had revenues of $109 million in 2006, primarily from products sold by others that use its formulation technologies. Eurand said its licensees market more than 40 different products that use its technologies, generating $92 million of last year's revenue total. Eurand also is developing its own products, with the lead candidate, EUR-1008, having completed two Phase III trials for treatment of exocrine pancreatic insufficiency.

The company, founded in 1969, became independent in 1999 when affiliates of Warburg Pincus LLC and Eurand CEO Gearóid Faherty acquired the drug delivery business of American Home Products Corp. (now part of Wyeth). AHP owned the business from 1989 to 1999. Eurand has manufacturing and research facilities in Milan and Trieste, Italy; Paris; Philadelphia; and Dayton, Ohio.

Eurand registered for its IPO May 1, proposing to sell 7 million shares at $17 to $19 per share. Deutsche Bank Securities Inc. and Lehman Brothers Inc. are joint bookrunners of the offering. Co-managers are Banc of America Securities LLC, Lazard Capital Markets LLC and Thomas Weisel Partners LLC. They have an option to purchase up to 1.05 million additional shares from Warburg Pincus and Faherty.

Eurand's stock (NASDAQ:EURX) fell 56 cents, or 3.5 percent, in its debut Thursday, closing at $15.44. It now has 43.86 million shares outstanding, along with 3.7 million options exercisable at an average price of $4.30 per share.

EUR-1008 is a porcine-derived enzyme replacement product for the treatment of exocrine pancreatic insufficiency, a deficiency of digestive enzymes normally produced by the pancreas that can result in various diseases. It completed two Phase III trials late last year in cystic fibrosis patients suffering from EPI, studies that met primary endpoints related to fat absorption and malabsorption, as well as secondary endpoints. Eurand said in its prospectus that it plans to begin a bioavailability study this summer in 12 subjects, and to begin a rolling new drug application to the FDA this quarter. The bioavailability study is expected to be completed late this year or early next year.

If approved, Eurand would establish a sales and marketing organization targeting the 115 cystic fibrosis treatment centers in the U.S. and certain gastroenterologists and pulmonologists. It proposed the name "Zentase" for EUR1-1008. It plans to out-license the product for Europe, Japan and other markets. The most advanced of Eurand's co-development products includes EUR-1002, a sustained-release formulation of cyclobenzaprine, a muscle relaxant, that will be marketed by ECR Pharmaceuticals, of Richmond, Va. The FDA approved the product in February.

Other advanced products include EUR-1047, orally disintegrating formulations of the allergy drug Benadryl, which is being developed with McNeil-PPC Inc., a subsidiary of New Brunswick, N.J.-based Johnson & Johnson; and EUR-1000, a generic to Inderal LA, a sustained-release formulation of propranolol for hypertension and migraines, developed with Reliant Pharmaceuticals Inc., of Liberty Corner, N.J. Eurand's most advanced internal product after EUR-1008 is EUR-1025, a once-a-day oral formulation of ondansetron, an anti-emetic prescribed to prevent nausea and vomiting in cancer patients undergoing chemotherapy and radiotherapy.

Eurand said it has signed 18 new co-development agreements with pharmaceutical companies in the U.S., Europe and Japan since 2005, generating revenues that fund its research and development programs. Its drug formulation technologies including platforms in customized release to reduce daily dosing requirements; dosage-form technologies such as orally disintegrating tablets and taste-masked drugs designed for convenience of use; bioavailability-enhancement technology to improve drug absorption; and drug-conjugation technology to extend drug half-life and to target specific organs or other biological targets.

Eurand had a net loss of about $6.6 million in 2006. It had about $7.6 million in cash and equivalents as of Dec. 31.

In other financing news:

• Biodel Inc., of Danbury, Conn., said underwriters of its initial public offering that priced earlier this month exercised their option on 750,000 additional shares. The IPO totaled 5.75 million shares at $15 per share, for gross proceeds of $86.25 million and net proceeds of about $80.2 million. Funds will be used in part to support development of VIAject, an injectable formulation of recombinant human insulin that began two pivotal Phase III studies in diabetes in September. (See BioWorld Today, May 14, 2007.)

• Advanced Magnetics Inc., of Cambridge, Mass., registered to sell 2 million shares in a public offering. Morgan Stanley & Co. Inc. is the sole book-running manager, with Bear Stearns & Co. Inc. joint lead manager. Co-managers are Deutsche Bank Securities Inc., Jefferies & Co. Inc. and ThinkEquity Partners LLC. They would have an option to purchase up to 300,000 additional shares to cover overallotments. The company's stock (NASDAQ:AMAG) fell $1.97 Thursday to close at $63.

• Maxygen Inc., of Redwood City, Calif., filed a universal shelf registration statement covering the sale of up to $150 million of various securities. Terms of any offering would be established at the time of the offering. Maxygen focuses on development of improved versions of protein drugs. Its stock (NASDAQ:MAXY) fell 50 cents Thursday to close at $9.20.

• Amicus Therapeutics Inc., of Cranbury, N.J., set terms for its proposed initial public offering. It intends to sell 5 million shares at $14 to $16 per share, which would gross $75 million at the midpoint of that price range. Underwriters would have an option to purchase up to 750,000 additional shares to cover overallotments. Morgan Stanley & Co. Inc. and Merrill Lynch & Co. are joint book-runners for the offering, and J.P. Morgan Securities Inc., Lazard Capital Markets LLC and Pacific Growth Equities are co-managers. Amicus filed for the IPO earlier this year to fund development of its lead drugs against lysosomal storage disorders. (See BioWorld Today, April 2, 2007.)

• Jazz Pharmaceuticals Inc., of Palo Alto, Calif., set terms for its proposed initial public offering with a plan to sell 6 million shares at $24 to $26 per share, which would gross $150 million at the midpoint of that price range. Underwriters would have an option to purchase up to 900,000 additional shares to cover overallotments. Morgan Stanley and Lehman Brothers are lead managers for the offering. Co-managers are Credit Suisse and Natexis Bleichroeder Inc. Jazz registered earlier this year for an IPO to raise up to $172.5 million. (See BioWorld Today, March 12, 2007.)

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