Frances Bishopp

With one product in the marketplace and another soon to begin Phase III clinical trials, Guilford Pharmaceuticals Inc. in a public offering has raised $65 million from the sale of 3.25 million shares of common stock at $20 per share.

Delivery is scheduled for April 14, 1997. Guilford, of Baltimore, also has granted the underwriters of the offering an option to purchase 487,500 shares to cover over-allotments, which, if exercised, could bring an additional $9.75 million.

The offering is being managed by Oppenheimer & Co., of New York, Alex. Brown & Sons Inc., of Baltimore, and Hambrecht & Quist, of New York.

Guilford's stock (NASDAQ:GLFD) closed Thursday at $20.875, up $0.625.

"Given the difficult market conditions, we were obviously pleased to complete the offering and raise in one offering almost as much money as we have ever raised in the market in three prior offerings," Craig Smith, president and CEO of Guilford, told BioWorld Today.

In June 1994, Guilford raised $15 million in its initial public offering from the sale of 1.75 million shares at $8 each The over-allotment was 281,250 shares at $8 per share.

In August 1995, Guilford sold 3 million shares at $6.50 per share. There were no over-allotments in this offering.

In its third offering in March 1996, Guilford sold 2 million shares at $20 per share. The over-allotment was 300,000 shares and was exercised, raising a total of $46 million.

If over-allotments from its most recent offering are exercised, Guilford will have raised approximately $154 million from all of its combined offerings.

After this offering, Guilford has 17.9 shares outstanding.

Smith said the money will be used to pay for Phase III clinical testing for its lead product, Dopascan, to develop new polymer-based products for cancer and to advance Guilford's early-stage programs, particularly the program to develop its neuroimmunophilin ligand program.

Neuroimmunophilin ligands are small molecules which promote nerve growth and repair. Smith said the company plans to move the neurotrophic program into clinical development this year because the results of pre-clinical research indicate they may be able to successfully treat both peripheral neuropathy and Parkinson's disease with an oral drug.

Dopascan injection is a radiolabeled tropane derivative being developed for the diagnosis and monitoring of Parkinson's disease. The company has just completed a multicenter Phase II clinical trial of Dopascan, for which results have not been reported. Guilford is partnering with Tokyo-based Daiichi Radioisotope Laboratories in Japan, Korea and Taiwan on this product.

Guilford's brain cancer product, Gliadel, was launched by marketing partner Rhone-Poulenc Rorer Inc., of Collegeville, Pa., on Feb. 25, 1997. The Gliadel Wafer is a treatment for malignant glioma, the most common and rapidly fatal form of brain cancer.

The wafer was the first FDA-approved product to deliver chemotherapy directly to the site of a malignant brain tumor.

The biodegradable polymer wafer is implanted into the cavity from which a brain tumor is removed. The wafers slowly erode, delivering the chemotherapy drug carmustine to the site. An average of eight disks, about the size of a dime, are implanted.

Guilford received approval of the drug as a second-line therapy for patients who have additional surgeries for recurrent glioblastoma. The company sought clearance of Gliadel as a first-line treatment with initial surgeries in all malignant glioma patients. To expand the label, Rorer and Guilford expect to begin another Phase III study of Gliadel this year.

As of Dec. 31, 1996, Guilford had approximately $77 million in cash. *