By Mary Welch

QLT PhotoTherapeutics Inc. raised almost $120 million in a public offering of 2.75 million shares, which is $20 million more than the company previously anticipated.

In late March, the Vancouver, British Columbia, company filed a registration with the SEC and Canadian authorities for a public offering in the U.S. and all provinces of Canada for 2.25 million shares of common stock. Instead, it sold 2.75 million shares of stock at $43.63 per share. QLT granted underwriters an option to purchase 412,500 shares to cover any overallotments. The offering started April 9, with the delivery set for May 5. Prior to the offering, there were 27.5 million shares outstanding. (See BioWorld Today, March 31, 1998, p. 1.)

QLT intends to use the net proceeds mainly to fund research-and-development activities and commercialization activities for Visudyne (verteporfin) and Photofrin (porfimer sodium), and possibly to acquire complementary technologies, products or companies.

The company has focused on photodynamic therapy for a variety of diseases ranging from cancer to rheumatoid arthritis. The therapy a two-step process that begins with intravenous administration of a photosensitizing drug, followed by exposure to a dose of light to activate the drug.

The photosensitizing drugs attach themselves to lipoproteins in cells. Because rapidly growing cells have a higher concentration of lipoproteins than normal cells, the drug accumulates in those cells more quickly than in normal cells. The drug is then activated with a dose of light that causes conversion of normal oxygen found in tissue to a highly energized form that, in turn, causes cell death.

Protofrin has been approved for three indications. In 1995, the FDA approved it as a palliative treatment for certain patients with esophageal cancer. In 1998, it was cleared for early-stage micro-invasive lung cancer in patients who are not candidates for surgery or radiotherapy. Last December, it got the nod for the palliative treatment of late-stage lung cancer. (See BioWorld Today, Sept. 8, 1998, p. 1, and Dec. 29, 1998, p. 1.)

The drug is currently in Phase III trials to treat Barrett¿s esophagus syndrome, with an FDA filing expected next year. Other possible indications include bladder cancer, gastric cancers, cervical cancer and dysplasia.

Visudyne, for the ¿wet¿ form of age-related macular degeneration (AMD), is now in two Phase III trials. A new drug application and European filings are expected to take place within the next few months. If approved, the drug would probably be launched in early 2000. AMD is the leading cause of adult blindness, affecting at least 10 percent of the U.S. population over 65. (See BioWorld Today, Jan. 6, 1999, p. 1.)

The company also has Visudyne in Phase III studies as a treatment for choroidal neovascularization due to pathologic myopia, a condition that is similar to wet-form AMD, but usually affects younger people.

Verteporfin is in early-stage development for the treatment of non-melanoma skin cancer, psoriasis and rheumatoid arthritis. Verteporfin may also be tested as a treatment for early stages of Barrett¿s esophagus syndrome.

The offering is being managed by CIBC Oppenheimer Corp./CIBC Wood Gundy Securities Inc., of Toronto. Serving as co-managers are: BT Alex. Brown, of Baltimore; ING Baring Furman Selz LLC, of New York; Nesbitt Burns Securities Inc., of Toronto; and Warburg Dillon Securities Inc. and Warburg Dillon Read LLC, both of New York.

QLT¿s stock (NASDAQ:QLTI) closed Friday at $45.687, up $2. n