By Karen Pihl-Carey

Pharmacyclics Inc. raised $89.1 million, more than double what it proposed, through a public offering of 2.3 million shares.

What was last month an offering of 1.75 million shares at an assumed price of $25.125 per share turned into the sale of 2.3 million shares at $38.75 each. (See BioWorld Today, Aug. 16, 1999, p. 1.)

The Sunnyvale, Calif., company and its underwriters still are in a "quiet period" and could not comment.

Pharmacyclics originally anticipated raising $41 million through the offering. Net proceeds were $83.6 million.

The company's stock has climbed steadily over the last several months. In August, at the time Pharmacyclics registered with the SEC for the offering, its stock (NASDAQ:PCYC) was at $26.75. It closed Friday at $41.937, up $3.187.

Once the offering is completed, the company will have 14.7 million outstanding shares. All of the 2.3 million shares are being sold by the company. The underwriters - Morgan Stanley Dean Witter, of New York; Hambrecht & Quist LLC, of San Francisco; and Pacific Growth Equities, of San Francisco - have the option to purchase a total of 345,000 additional shares to cover overallotments.

The company said in SEC filings it plans to use the money for research and development, including clinical trials, process development and manufacturing support, as well as for general corporate purposes. Proceeds may also go toward acquiring or investing in complementary businesses, products or technologies. No such negotiations were ongoing when the stock offering was proposed.

Pharmacyclics specializes in developing energy-potentiating drugs to treat cancer, atherosclerosis and retinal disease. Its platform technology involves texaphyrins, which localize in cancer cells, atherosclerotic plaques and neovasculature. They can be activated by X-rays, light and chemotherapeutics to eliminate diseased tissues.

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. The company has completed Phase II trials of the photodynamic therapy, Lutrin, for recurrent breast cancer, and it is planning Phase I studies of both Xcytrin and Lutrin in other cancer indications. The company also has Optin in Phase I/II trials. Optin is a texaphyrin for age-related macular degeneration.

Pharmacyclics recently completed a Phase I clinical trial of Antrin, a lutetium texaphyrin, as a photo-angioplasty treatment for patients with peripheral arterial disease. The studies indicated that Antrin injection treatment was safe, well-tolerated and clinically active in the patients.