Oxigene Inc. raised more than $25 million in a public offering of 1million shares to European investors to support continueddevelopment of its drugs that boost the effectiveness of radiation andchemotherapy cancer treatments.
The company, with headquarters in New York and Lund, Sweden,priced the shares at $25.27, for gross proceeds of $25.27 million. Netproceeds totaled $23.6 million. Oxigene registered for the offering inlate October. (See BioWorld Today, Nov. 1, 1996, p. 1.)
Underwriters were D. Carnegie AB, of Stockholm, and NordbergCapital Inc., of New York.
Oxigene officials anticipated selling a portion of the shares in theU.S., but all 1 million were sold to investors in Sweden and otherEuropean countries.
The company's stock (NASDAQ:OXGN) closed Wednesday at$25.625, up $0.375.
In the past 16 months, Oxigene's stock has soared more than 320percent. In June 1995, the company changed management and raised$10 million in a private placement of 1.6 million shares at $6 pershare. Carnegie also managed that equity financing.
Oxigene's lead products, Sensamide and Neu-Sensamide, are in late-stage clinical development to battle cancer by making tumor cellsmore sensitive to destruction by radiation and chemotherapy.
The drugs are inhibitors of a DNA repair enzyme, called adenosinediphosphate ribosyl transferase (ADPRT), which counters thecytotoxic effects of radiation and chemotherapy.
Sensamide is a high dose form of metoclopramide and Neu-Sensamide is a second generation compound designed to producefewer adverse side effects. Sensamide is in Phase II/III trials for lungcancer and Neu-Sensamide is expected to begin Phase III trials thisyear for lung cancer.
Oxigene is also working on compounds that stimulate ADPRT topromote DNA repair for treatment of other diseases.
As of June 30, 1996, Oxigene had $10.7 million in cash and reporteda net loss of $3.4 million for the first six months of this year. n
-- Charles Craig
(c) 1997 American Health Consultants. All rights reserved.