From Staff Reports

Endocyte Inc. raised $15 million in a Series C-3 round of financing to support development of receptor-targeted therapeutics for treating cancer and autoimmune diseases.

The West Lafayette, Ind., company raised $22.6 million in an earlier part of the Series C round, in 2004. (See BioWorld Today, Dec. 8, 2004.)

Endocyte said funds will be used for three Phase II trials and one Phase I study of its folate-targeted cancer therapies. The studies will target renal cell carcinoma, ovarian cancer and non-small-cell lung cancer. The company said targeting drugs to receptors on diseased cells is expected to reduce side effects. Endocyte also will continue its development efforts related to autoimmune therapies and the extension of its pipeline with next-generation oncology drugs.

The financing was provided by existing investors. They included Sanderling Venture Partners, Burrill & Co., Triathlon Venture Partners, Blue Chip Venture Co., American Bailey Ventures and CID Capital.

In other financing news:

• Chelsea Therapeutics International Ltd., of Charlotte, N.C., closed a previously announced $12.5 million private placement with institutional and other accredited investors. The company sold about 2.6 million shares, and warrants to purchase up to 794,000 additional shares. Leerink Swann & Co. was placement agent. Proceeds will be used to fund development of CH-1504, including Phase II trials in rheumatoid arthritis; initiate pivotal Phase III trials of Droxidopa in neurogenic orthostatic hypotension; expand its Droxidopa clinical program into other indications; and for general working capital.

• Pharmasset Inc., of Princeton, N.J., set terms for its proposed initial public offering. The company said it would sell 6 million common shares at $12 to $14 per share, for gross proceeds of $72 million to $84 million. Pharmasset plans to use proceeds for Phase III trials of clevudine in hepatitis B, among other purposes. Banc of America Securities LLC and UBS Investment Bank are joint book-running managers for the deal, with JMP Securities serving as co-manager. They would have an overallotment option on 900,000 additional shares. Pharmasset registered last year to raise up to $75 million in an IPO. (See BioWorld Today, May 10, 2006.)

• Progen Industries Ltd., of Sydney, Australia, filed a shelf registration statement that would allow it to sell up to $60 million in shares and/or warrants in the U.S. over the next two years. The terms, amounts and pricing would be determined at the time of any sale. The company is developing small-molecule drugs for treating cancer and other diseases.