By Brady Huggett
ICOS Corp. completed its public offering, pulling in $166.5 million, an amount $73.5 million below its estimated bounty when it filed in October.
"We are pleased to have put the money in the bank that will support our late-stage clinical programs and the filing of an NDA [new drug application] for Cialis," said Lacy Fitzpatrick, director of investor relations at ICOS.
SG Cowen Securities Corp., of New York, led the offering. Co-managers are Banc of America Securities LLC, of San Francisco; Prudential Vector Healthcare Group, of New York; Robertson Stephens Inc., of San Francisco; and Ragen MacKenzie Inc., of Seattle. The underwriters have an option to purchase 675,000 shares to cover overallotments.
Originally, ICOS filed to sell 5 million shares. Based on the $48 opening price on the day of the filing's announcement, an offering at that price would have raised $240 million. But over the course of the next two months its stock moved downward, and ICOS closed the offering selling fewer shares - 4.5 million - and at a lower price - $37 per share. (See BioWorld Today, Oct. 13, 2000.)
ICOS, of Bothell, Wash., said in its prospectus it would use the proceeds for funding research and clinical development, commercialization of potential products and general corporate purposes. If the overallotment purchase option is exercised in full, ICOS said it anticipates raising a total of $181.4 million, after deducting underwriting discounts and commissions and offering expenses.
After the sale, ICOS has about 51 million shares outstanding. As of Sept. 30, it had about $53 million in cash and cash equivalents.
ICOS develops protein-based and small-molecule therapeutics. It combines its capabilities in molecular, cellular and structural biology, high-throughput drug screening, medicinal chemistry and genomics to develop its products.
Cialis, a product being developed in collaboration with Eli Lilly and Co., of Indianapolis, is in Phase III trials for the treatment of erectile dysfunction and in Phase II for female sexual dysfunction.
Pafase, being developed with Suntory Ltd., of Tokyo, for the treatment of sepsis, is expected to enter Phase III in the first quarter of 2001. ICOS also has IC14 in Phase I trials for sepsis.
Sitaxsentan, being developed with Texas Biotechnology Corp., of Houston, is expected to enter a Phase IIb/III trial for the treatment of pulmonary hypertension in the first quarter of 2001. It also is in two Phase IIa trials, one for chronic heart failure and one for essential hypertension.
ICOS' preclinical pipeline has products for cancer, psoriasis, rheumatoid arthritis, chronic heart failure and essential hypertension and chronic obstructive pulmonary disease. It is researching infectious disease, cardiovascular disease, allergic inflammatory disease, inflammatory disease and others.
ICOS has collaborative agreements with Array BioPharma Inc., of Boulder, Colo., and Abbott Laboratories Inc., of Abbott Park, Ill., among others.
ICOS has received approximately $200 million in aggregate milestone payments, research and development funding and license fees from its collaborations and licensing agreements from September 1990 through September 30, 2000.
ICOS' stock (NASDAQ:ICOS) closed up 18.75 cents Thursday at $39.687.