By Mary Welch

Pharmacyclics Inc. raised $60 million by entering into definitive purchase agreements to sell 820,000 shares at $73.25 each to institutional investors.

The proceeds will be used for research and development, including clinical trials, process development and manufacturing support. Pacific Growth Equities Inc., of San Francisco, served as the placement agent.

The Sunnyvale, Calif.-based company specializes in developing energy-potentiating drugs to treat cancer, atherosclerosis and retinal disease. Its platform technology involves texaphyrins, which are ring-shaped small molecules that localize in cancer cells, atherosclerotic plaques and neovasculature. In order to eliminate disease tissues, these texaphyrins can be activated by various forms of energy, includin, X-rays, light and chemotherapeutics.

The company¿s lead molecule, Xcytrin, is in Phase III trials to increase the efficacy of radiation therapy for tumors that have spread to the brain. Xcytrin also is in Phase I trials for treating children with a type of brain stem tumor called intrinsic pontine glioma.

In addition, the company has finished Phase II trials of its photodynamic therapy, Lutrin, for recurrent breast cancer, and is planning Phase I studies of both Xcytrin and Lutrin in other cancer indications. Lutrin is in a Phase II study for patients with recurrent breast cancer to the chest wall.

Another product, Optin (motexafin lutetium), a texaphyrin for age-related macular degeneration, is in Phase I/II trials.

Pharmacyclics just started a Phase I trial of Antrin (motexafin lutetium) injection for the treatment of coronary artery disease. Already under way is a Phase II trial of Antrin, a lutetium texaphyrin, as a photo-angioplasty treatment for patients with peripheral arterial disease.

The company went public last fall raising almost $90 million in a public offering of 2.3 million shares. The company originally anticipated raising about $41 million. Final net proceeds were $83.6 million. (See BioWorld Today, Aug. 16, 1999, p. 1; and Sept. 27, 1999, p. 1.)

The company also released its second-quarter 2000 financials, which ended Dec. 31. The company reported a second-quarter net loss of $5.4 million, or 36 cents per share. Revenues were $1.16 million. The company had cash and cash equivalents of $61.2 million. There were about 15 million shares outstanding.

Pharmacyclics¿ stock (NASDA:PCYC) closed Thursday at $75.812, down $2.312.