By Brady Huggett
Protein Design Labs Inc. completed a public offering of 3 million shares at $118.44 each, raising $355.3 million, more than $100 million more than it sought when it registered for the offering in August.
The offering is being co-led by Credit Suisse First Boston and CIBC World Markets, and co-managed by SG Cowen, all of New York. They have a 30-day option to purchase up to 450,000 additional shares to cover overallotments. PDL now has about 42.8 million shares outstanding.
PDL, of Fremont, Calif., underwent a 2-for-1 stock split in July. In late August it filed to sell 2.5 million shares, an offering expected to bring in about $220 million with its $87 stock price at that time. PDL's stock (NASDAQ:PDLI) closed at $117.625 Tuesday, down 87.5 cents. (See BioWorld Today, Aug. 8, 2000, p. 1.)
PDL plans to use the money for clinical trials, sales and marketing, working capital and for other corporate purposes.
PDL holds fundamental patents in the U.S., Europe and Japan for its antibody humanization technology and has signed license, option or humanization agreements covering more than 40 antibodies, over half of which are in clinical development. PDL created the first humanized antibody to receive marketing approval, called Zenapax. It is marketed in the United States, Europe and other territories by Hoffmann-La Roche Inc. and affiliates for the prevention of acute kidney transplant rejection.
PDL's SMART humanized antibodies are created by combining mice and human antibodies, about 90 percent of which are human. PDL's completed clinical studies demonstrated that the minor amount of mouse antibody used in SMART antibodies does not cause immune responses in patients, a common occurrence with mouse antibodies.
PDL had $309.9 million in cash and cash equivalents June 30, thanks largely to a $150 million private placement in February of 5.5 percent convertible subordinated notes due 2007. (See BioWorld Today, Feb. 2, 2000, p. 1.)