By Mary Welch

Neose Technologies Inc. raised $14.2 million in a private placement "for general corporate purposes and to give us a little extra capital," said Sherrill Neff, president and chief financial officer.

The money "gives us tremendous advantages and allows us to take advantage of opportunities that come along," Neff said, adding the flexibility "might include buying or in-licensing compatible technology, [but] don't read too much into this. There is no deal imminent."

Neose, headquartered in Horsham, Pa., sold 1.5 million shares of common stock to institutional investors as well as individuals, including its board of directors. The price was $9.50 per share, which was the closing bid price on June 17. Paramount Capital Inc., of New York, assisted in the private financing. With this placement, the company has 11.5 million shares outstanding.

"It was a straightforward deal, no special warrants or other unusual things that you're seeing in a lot of these deals," Neff said. "We're particularly pleased that every member of our board of directors purchased stock. The institutional investors were all new."

Neose is developing a broad technology platform for the enzymatic synthesis, manufacture and commercialization of complex carbohydrates for a variety of uses. The company has two products in Phase II trials: NE-0080, for the prevention and treatment of H. pylori-induced ulcers and gastritis; and NE-1530, for the prevention and treatment of ear infections in children.

"We also believe that our carbohydrate platform, some of which we acquired from Cytel, is going to become increasingly important," Neff said.

Neose paid $6.6 million in cash to Cytel Corp., of San Diego, for its Glytec business unit, which included 14 patents (issued or pending), two provisional applications as well as foreign patents and applications. It also included license and option agreements with nine companies and institutions, covering more than 50 additional patents. (See BioWorld Today, March 30, 1999, p. 1.)

A main part of the acquisition centered on Cytel's Sugar Nucleotide Cycling (SNC) technology, a process to enzymatically synthesize complex carbohydrates. It uses recombinant glycotransferase enzymes to link carbohydrate components in a way that allows for yields near 100 percent in certain carbohydrates.

Neose's stock (NASDAQ:NTEC) closed Tuesday at $9.750, down $0.250.