By Matthew Willett
COR Therapeutics Inc. said it plans to offer convertible senior notes totaling $175 million to fund research and development activities, possible acquisitions and other general corporate purposes.
The financing could include up to $50 million more in notes to cover overallotments, the South San Francisco-based company said.
As of March 31, COR had cash and cash equivalents of $338.5 million. The firm reported a loss for the quarter of $2.89 million, or 5 cents per share, contract revenues of $22.8 million and revenue of $38.1 million from sales of its lead product Integrilin for injection, an anti-clotting therapeutic for use in patients with unstable angina and non-Q-wave myocardial infarction or patients undergoing balloon angioplasty.
¿A 144a transaction in the debt world provides an access to a new set of investors and the opportunity, ultimately, to issue equity at a premium to the current trading price, and those are attractive features,¿ said Peter Roddy, COR¿s chief financial officer. Financings of this type often move quickly, he added.
Roddy said he couldn¿t provide a more detailed picture of the offering, arranged by Goldman Sachs & Co., of New York.
COR had 55 million shares outstanding as of March 31. In April, the company said it expected to attain profitability by the end of the year.
In the clinic, COR is evaluating Integrilin for acute myocardial infarction in a Phase II trial. Its oral GP IIb/IIIa inhibitor, which functions through the same pathway as Integrilin ¿ that is, by blocking the platelet receptor GP IIb/IIIa ¿ has completed a Phase II study in acute coronary syndrome and stroke. In preclinical evaluation are COR¿s Factor Xa inhibitor for treatment of venous thrombosis and its growth factor for restenosis and oncology applications.
COR has a thrombin receptor inhibitor, a platelet adenosine diphosphate receptor, a myocardial signal transduction factor and an integrin signaling factor under early research as well. The company¿s stock (NASDAQ:CORR) dropped $2.33 Monday, closing at $32.19.