By Randall Osborne
Collateral Therapeutics Inc. (CTI) registered for an initial public offering (IPO) of 3.33 million shares at an expected $11 to $13 per share — a price which, at the middle range of $12, would raise $39.9 million for the gene therapy company.
San Diego-based CTI uses a non-surgical approach to deliver gene therapy for congestive heart failure and peripheral vascular disease. The company also has a gene therapy program covering heart muscle regeneration as a treatment for heart attack. (See BioWorld Today, Jan. 7, 1998, p. 1.)
With CTI's method, a cardiologist threads a catheter through the femoral artery and into the coronary artery to deliver the gene therapy package while performing a diagnostic angiogram.
In February, CTI collaborated with Targeted Genetics Corp. in a research agreement to test the Seattle-based company's recombinant adeno-associated viral (rAAV) vector for cardiovascular gene transfer.
Under terms of the deal, the companies have the option to experiment with delivering the adenylycyclase (AC) gene into heart cells to treat congestive heart failure. CTI's research has shown the AC gene increases the ability of the heart to contract, which could make it a new treatment for congestive heart failure. The condition afflicts about 4 million people in the U.S.
CTI hopes to develop Targeted Genetics' rAAV vector for use in Corgenic, a new gene therapy product designed to increase the heart's ability to pump blood in response to catecholamine solution.
In May 1996, CTI partnered with Schering AG, of Berlin, to develop and commercialize products based on CTI's angiogenesis program for coronary artery disease.
All shares in the IPO would be offered by CTI, with Bear Stearns & Co., of New York, acting as lead underwriter. Co-managers are Raymond James & Associates Inc., of St. Petersburg, Fla., and Vector Securities International Inc., of Deerfield, Ill. *