Flamel Technologies SA raised about $62 million by selling about 2 million shares of common stock, while certain stockholders sold about the same amount.

The Lyon, France-based company sold its shares in the form of American Depository Shares, while other selling shareholders offered about another 2 million ADSs, priced at $33.25 apiece. Flamel expects to net about $62.1 million from the public offering, funding it plans to use for research and development, working capital and general corporate purposes.

Its two polymer-based delivery methods include Medusa, a nanoparticulate technology designed to deliver therapeutic proteins and peptides, and Micropump, a controlled-release and taste-masking technology for the oral administration of small-molecule drugs.

The company recently partnered its recombinant human insulin product, Basulin, with Bristol-Myers Squibb Co. in a deal valued at up to $165 million. If its New York-based partner advances the controlled-release insulin product to the market, Flamel would receive double-digit royalties. (See BioWorld Today, Aug. 28, 2003.)

Basulin initially was partnered with Novo Nordisk A/S, of Bagsvaerd, Denmark, in a deal that began late in 1999 and included a $5 million up-front payment with a total value of $42 million. Upon the collaboration's termination, Flamel disclosed that it had received another $10 million from Novo. (See BioWorld Today, Jan. 14, 2002.)

Flamel will not receive any additional proceeds from the financing if the underwriters exercise their 588,000-share overallotment option. The underwriters include Merrill Lynch & Co., UBS Investment Bank, SG Cowen Securities Corp., Punk Ziegel & Co. and Brean Murray & Co. Inc., all of New York, as well as Merriman Curhan Ford & Co., of San Francisco.

The shares are expected to be issued and sold on Oct. 8, subject to customary conditions. Flamel's stock (NASDAQ:FLML) on Friday gained $1.32 to close at $35.10.

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