Organogenesis Inc. filed to sell up to 1.9 million shares of stock by way of an underwriting agreement with UBS Warburg LLC.
At Friday¿s closing price (AMEX:ORG) of $8.85, such a sale would raise $16.8 million, although Canton, Mass.-based Organogenesis has arranged to sell the shares over a two-year period to UBS, of Stamford, Conn.
Under the terms of the deal, the company may issue and sell to UBS not less than 5 percent or more than 25 percent of the average trading volume for the previous five days.
In February, Organogenesis expanded its deal with Novartis AG, of Basel, Switzerland, related to payments from Novartis for Apligraf, the skin replacement product made from the foreskins of human infants. Cells from the discarded foreskins are cultured to create two layers of skin lacking blood vessels, hair follicles or sweat glands. (See BioWorld Today, Feb. 27, 2000.)
The amended deal also let Organogenesis sell up to $20 million in equity over the next five years.
The FDA approved Apligraf for venous leg ulcers caused by circulatory trouble, and last year approved the product for diabetic foot ulcers. (See BioWorld Today, Feb. 2, 1998 and June 21, 2000.)
Two months ago, Philip Laughlin, president and CEO of Organogenesis, said the company would be raising cash this year, but the form of the fund-raising was not certain. The company¿s stock closed Monday at $9.15, up 30 cents.
¿ Randall Osborne