By Mary Welch

Delsys Pharmaceutical Corp. raised $26 million in an oversubscribed private placement of preferred stock.

The Princeton, N.J., company will use the proceeds to take its proprietary Accudep technology through commercialization with a collaborating partner, said Martyn Greenacre, the company's CEO. "This will allow us to develop and commercialize a product for marketing with a collaborator using the Accudep technology. We expect that we will be ready by mid-2003."

"This financing will last us until we actually go public - until we are actually really ready to go public with a capital 'R,'" he said. "We expect that will be in the second quarter of next year, which isn't to say that it will happen. We will have to see about market conditions. But we have no need to go public before that."

The privately held company was looking for $20 million to $25 million, he said. The round was led by London-based Rothschild Asset Management's International Biotechnology Trust, and included a new investor, STAR Ventures, of Munich, Germany. Past investors who participated in this round include HealthCare Ventures, of Princeton, N.J.; Rho Management, of New York; Hudson Trust, of Princeton; CenterPoint Ventures, of Dallas; Prism Venture Partners, of Westwood, Mass.; and Johnson & Johnson Development Corp., of New Brunswick, N.J.

"This financing provides us with a strong capital base to support commercialization of the Accudep process," Greenacre said.

The Accudep technology is a highly controlled electrostatic powder deposition process that deposits a drug's active ingredient onto a variety of surfaces, thus cutting down on excipients and eliminating traditional pharmaceutical manufacturing procedures for powder mixing and blending, granulation and drying, lubrication, compression and coating.

As a result, the company said, the technology offers several benefits, including improved drug quality and safety, reduced time to market, enhanced efficiency in drug formulation and an overall reduction in manufacturing costs by supplanting the time-, labor- and infrastructure-intensive processes associated with traditional pharmaceutical manufacturing, the company said.