Selling 1 million shares more than originally proposed, Labopharm Inc. priced its initial public offering in the U.S., raising $88 million to support commercialization of its once-a-day tramadol product.

The Laval, Quebec-based company sold 11 million shares at $8 apiece and offered underwriters an overallotment option to buy up to about 1.7 million common shares. If exercised in full, it would raise the company another $13.2 million in gross proceeds.

Its shares now will trade on the Nasdaq National Market under the symbol "DDSS." The stock was well received and closed Friday at $8.80.

In Canada, where Labopharm is listed on the Toronto Stock Exchange (DDS), shares rose C97 cents, to close at C$9.99 (US$8.94)

Merrill Lynch & Co. and Banc of America Securities LLC, both of New York, are acting as joint book-running managers, while Vancouver, British Columbia-based Canaccord Capital Corp., Boston-based Leerink Swann & Co., and Toronto-based firms Orion Securities Inc., Dundee Securities Corp. and Westwind Partners Inc. are the co-managers.

In addition to paying for tramadol activities, the funds will advance development of existing and new product candidates within the company's pipeline, as well as support working capital and other general corporate purposes.

Labopharm filed for the IPO in mid-April, expecting to offer 10 million shares and raise about $76.4 million. (See BioWorld Today, April 20, 2006.)

Earlier in the month, the company reported that tramadol achieved statistical significance in the MDT3-005 Phase III trial, which was conducted under a special protocol assessment with the FDA. The trial enrolled about 1,000 patients who had moderate to severe pain associated with osteoarthritis of the knee and showed that tramadol reached statistical significance (p=0.0157) over placebo in the comparison of baseline pain intensity with pain intensity at the end of the study period.

The analgesic is marketed in Germany and has regulatory approval in 21 other European countries. Labopharm's product incorporates its Contramid controlled-release technology, enabling tramadol to be delivered once a day, causing fewer side effects than the approved version. Contramid is based on cross-linked, high amylose starch and is used for oral administration of solid dosage medications.

Tramadol is partnered in the U.S. with Purdue Pharma LP, of Stamford, Conn., through a deal signed last August and worth $170 million. Labopharm filed a new drug application for the product last year and has a PDUFA date scheduled for Sept. 28.

The company also is developing once-daily trazodone, which is slated to enter Phase II trials later this year. Trazodone is indicated for depression and administered as a twice-daily or three-times-a-day product.

At the earlier stage, Labopharm is working on a once-daily betahistine, which is indicated for symptoms related to Meniere's disease. The company expects to out-license the product for further development.

Company officials remained in an SEC-imposed quiet period on Friday. The IPO is expected to close May 3. Following the closing, Labopharm will have 54.9 million shares outstanding.

In other financings news:

• Acadia Pharmaceuticals Inc., of San Diego, priced a public offering of nearly 5 million shares of common stock at $12 apiece, resulting in gross proceeds of $59.4 million and net proceeds of $55.6 million. The company also granted the underwriters an overallotment option of 742,084 shares, which could raise the net proceeds to $64 million, if exercised in full. Underwriters include Banc of America Securities LLC, Lehman Brothers Inc., Piper Jaffray & Co., JMP Securities LLC and Canaccord Adams Inc. Acadia plans to use the net proceeds to fund ongoing and new clinical trials of ACP-103 for Parkinson's disease, schizophrenia and insomnia, and ACP-104 for schizophrenia. Proceeds also will go toward the company's other product candidates, its research and preclinical development activities and its general corporate purposes, including working capital.

• Sonus Pharmaceuticals Inc., of Bothell, Wash., entered purchase agreements to sell about $30.6 million worth of its common stock in a registered direct offering. The company will sell about 6.1 million shares at $5 apiece to a select group of new and current institutional investors, led by Federated Kaufmann Funds. Needham & Co. LLC acted as the lead placement agent, and Punk Ziegel & Co. and ThinkEquity Partners LLC acted as co-placement agents. Proceeds will help fund the company's share of the remaining Phase III development costs of Tocosol Paclitaxel and to help expand its efforts to develop additional oncology products.