Creative BioMolecules Inc.'s public offering of two million sharesgenerated $14 million, which was less than anticipated, to supportdevelopment of its morphogenic proteins for tissue and organregeneration.
When the Hopkinton, Mass., company registered for the offering inearly June 1996, its stock (NASDAQ:CBMI) was trading at $9 pershare. The equity sale, at $7 per share, matches the price of CreativeBioMolecules' initial public offering (IPO) four years ago. Thefollow-on public offering was the first for the company since the IPO.
Underwriters were Hambrecht & Quist LLC and Cowen & Co., bothof New York. They have options to purchase another 300,000 sharesto cover overallotments.
Following the offering, Creative BioMolecules has 31 million sharesoutstanding. As of March 31, 1996, the company had $17.5 millionin cash and reported a net loss of $3.4 million for the first threemonths of this year.
Creative BioMolecules' drug development is based on usingmorphogenic proteins to stimulate tissue regeneration. The proteins,company researchers said, are responsible for the natural activationof stem cells, which differentiate to form the body's various tissues,such as those that make up bone, organs and the brain.
The company's lead morphogenic protein, called osteogenic protein-1 (OP-1), is produced in kidneys. The most advanced clinical studiesinvolve using OP-1 in a paste-like formulation to regenerate bone fortreatment of fractures. In that form, OP-1 is classified by the FDA asa device and the product is in late-stage pivotal studies for non-unionfractures.
Creative BioMolecules has a collaboration with Stryker Corp., ofKalamazoo, Mich., a surgical and medical products company, fordevelopment of OP-1 for orthopedic indications. The two firms havebeen partners since 1985.
In May 1996 Stryker paid Creative BioMolecules $12 million toexpand the orthopedic program and support work for filing apremarket approval application for OP-1 with the FDA in late 1997.n
-- Charles Craig
(c) 1997 American Health Consultants. All rights reserved.