Epimmune Inc., with $11.9 million in cash at the end of the third quarter, filed to publicly sell 7.25 million shares.
In its prospectus, San Diego-based Epimmune suggested a share price of $1.32, the amount its stock closed at on Wednesday, which would give the offering a gross estimated value of $9.57 million.
Epimmune's stock (NASDAQ:EPMN) rose 36 cents Friday, or 31.6 percent, to close at $1.40.
The company said it intends to use approximately $2.7 million of the net proceeds to fund the Phase I/II trial of its HIV vaccine, EP HIV-1090, that began in September 2002, and approximately $2.6 million to file an investigational new drug application and then fund the planned trial of its lung and colorectal cancer vaccine. The company's vaccines are made of epitopes designed to stimulate specific T-cell immune responses.
Epimmune expects proceeds from the offering, together with its existing assets and cash receipts from existing contracts, to be enough to fund operations through December 2004.
In July 2001, the company began a collaboration with Genencor International Inc., of Palo Alto, Calif., for vaccines to treat or prevent hepatitis B virus, hepatitis C virus and human papillomavirus. Genencor made an initial 10 percent equity investment at the time. The agreement calls for up to $60 million in payments, including the equity investment but excluding royalties. In January, the company received its first milestone payment for the identification of a product candidate to treat chronic hepatitis B. (See BioWorld Today, July 11, 2001.)
In the third quarter, Epimmune recorded a net loss of $1.5 million, or 13 cents per share. For the first nine months of the year, it recorded a net loss of $4.8 million. In its prospectus, the company said it would have up to about 19.4 million shares outstanding after the offering.
Punk Ziegel & Co. is acting as placement agent for the offering.