Neurochem Inc. priced its initial public offering in the U.S. (which also includes the sale of shares in Canada), up-sizing to 5 million shares from the previously targeted 4.2 million, and now expects to raise about $54 million.

With the offering due to close on or about Sept. 23, the Montreal-based firm was in a quiet period under SEC rules, but the company said in a press release that the 5 million shares, all sold by the company, are priced at $10.87 per share.

Last month, Neurochem said in a prospectus filed with the SEC that it planned to offer 4.2 million shares. Based on the company's then most-recent closing price of C$14.48 (US$10.41), the sale would have raised about $43.7 million and left the company with 27.8 million shares outstanding (See BioWorld Today, Aug. 21, 2003.)

In the larger offering, Neurochem granted underwriters an option to purchase 750,000 more shares (630,000 in the first prospectus) to cover overallotments. After the offering, the company would have about 28.7 million shares outstanding, and the total proceeds to the company after underwriters are paid about $3 million would be about $51.3 million, according to the new prospectus.

Neurochem has applied to trade on Nasdaq under the symbol "NRMX."

The company's pipeline includes Fibrillex for secondary amyloidosis, in a Phase II/III trial with a new drug application expected in 2005. The drug has orphan status in the U.S. and Europe.

Design is under way for Phase III trials with Alzhemed in Alzheimer's disease, for which the NDA is forecast in 2006. Cerebril is in a Phase II trial for hemorrhagic stroke due to cerebral amyloid angiopathy, with the NDA likely due in 2007.

Sole book-running manager of the offering is UBS Securities LLC, of New York. Co-managers are Banc of America Securities Canada Co., of New York; RBC Dominion Securities Inc., of Toronto; CIBC World Markets Inc., of New York; Loewen, Ondaatje, McCutcheon Ltd., of Toronto; and Orion Securities Inc., also of Toronto.

Neurochem's stock (TSX:NRM) rose C$2.62 Thursday or 17.6 percent, to close at C$17.50.