DepoTech Corp., with positive Phase III trial results of its sustained-release cancer therapeutic in hand, filed Thursday to sell two millionshares in a public offering.
DepoTech and partner Chiron Corp. said last month they plan onfiling a new drug application by the end of the year for DepoCyt, aninjectable, sustained-release formulation of the chemotherapeuticagent cytarabine. DepoCyt produced better responses than thestandard therapy of methotrexate for patients with neoplasticmeningitis arising from solid tumors.
DepoTech, of San Diego, is expecting to raise about $44 millionfrom the sale of two million shares. Its stock lost 75 cents per shareThursday and 50 cents Friday to close at $20.75. The current price is73 percent higher than it was when DepoTech grossed $41.4 millionfrom its September 1995 initial public offering of nearly 3.5 millionshares at $12 each.
Following the offering DepoTech will have about 13.4 million sharesoutstanding. Dillon, Read & Co. Inc. and UBS Securities, both ofNew York, and Vector Securities International Inc., of Deerfield, Ill.,are managing the offering.
Chiron, of Emeryville, Calif., has marketing rights to DepoCyt inNorth America and Europe. The companies are working onsustained-release formulations of two other Chiron proteins, insulin-like growth factor and interleukin-2. DepoTech has completed aPhase I study of DepoAmikacin, a sustained-release form of theantibiotic amikacin, for bacterial infections.
DepoTech reported having $30.6 million in cash and short-terminvestments on March 31, 1996, with a net loss of $2.5 million forthe quarter. _ Jim Shrine
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