By Mary Welch
Cytoclonal Pharmaceutics Inc. completed the call for redemption of its Class D warrants, with the gross proceeds totaling $25.7 million.
Each Class D warrant was exercisable at $8.75 by April 11 for one share of common stock.
The company now has $41.7 million in cash, which will be used to further develop its lead compounds for cancer and Gaucher's disease and expand two platform technologies for potential new drugs. To date, 65 percent of the warrants have been exercised by warrant holders. The Dallas-based company now has 15.6 million shares outstanding.
The company's lead programs involve paclitaxel, the active ingredient in Taxol, Bristol-Myers Squibb Co.'s anticancer drug. It struck a $50 million deal with Bristol-Myers to focus on microbial fermentation to produce paclitaxel and on use of specific genes to enhance production. In addition, it is seeking a treatment of polycystic kidney disease also using paclitaxel. (See BioWorld Today, June 26, 1998, p. 1.)
Other programs include Quantum Core Technology, its proprietary rational drug design, targeting proteins, and Oasis optimized antisense library for regulating genes. It also is involved in the discovery of human genes through Retroselection, focusing on the treatment of lung and breast cancers by peptide inhibition of estrogen receptors.
Cytoclonal officials could not be reached for comment.
Cytoclonal's stock (NASDAQ:CYPH) closed Monday at $5, down 6.25 cents.