By Randall Osborne

Marching ahead with development of its lead product for treating advanced melanoma, Maxim Pharmaceuticals Inc. plans a public offering of 2.5 million shares.

The San Diego company (AMEX:MMP) could raise nearly $35 million, based on Monday's closing stock price of $13.937, which was down $0.437.

After the offering, Maxim will have 9.179 million shares outstanding.

Maxamine, the company's lead product, is a dihydrochloride salt form of histamine. Used with interleukin-2 or alpha interferon — or with both of these cytokines — Maxamine is believed to enhance synergistically the work of these immune-system boosters. Because natural killer cells and T cells are protected, the dosage of cytokine can be lowered and toxicity thereby lessened.

In June, Maxim began a 200-patient Phase III clinical trial of Maxamine for advanced melanoma. (See BioWorld Today, June 27, 1997, p. 2.) A Phase III clinical trial for acute myelogenous leukemia will begin early next year. A separate, similar Phase III trial will begin in Sweden and Australia by the end of this year. Earlier-stage clinical trials are testing Maxamine against renal cell carcinoma, hepatitis C and multiple myeloma. Maxim expects to begin clinical trials of Maxamine for other cancers, such as prostate adenocarcinoma, next year.

Net proceeds from the stock offering will fund operations for at least a year, but will not be enough to pay for commercialization of Maxamine, if the FDA approves it.

The company also is developing Maxvax, a mucosal vaccine carrier/adjuvant system that uses the B subunit of cholera toxin. Maxima hopes to devise mucosal vaccines against sexually transmitted diseases, as well as diseases of the gastrointestinal tract and respiratory system.

Alfred Berg, an investment banking firm in Stockholm, is global coordinator for the offering. Rodman & Renshaw Inc., of Chicago, is the U.S. representative.

As of June 30, Maxim had $14.275 million in cash, cash equivalents and investments. The company's net loss for the second quarter of this year was $4.315 million. *