Immunomedics Inc. went to a group of international investors to raise$10 million to help support the anticipated launch of its first product,a colorectal cancer diagnostic imaging agent.
The Morris Plains, N.J., company received an approvable letter inApril 1996 for the cancer test, called CEA-Scan, and is awaiting finalmarketing clearance from the FDA. CEA-scan also has beenrecommended for approval by the European Union's Committee forProprietary Medicinal Products.
The in vivo agent is a monoclonal antibody fragment, labeled withtechnetium-99, for detection of the carcinoembryonic antigen (CEA),which is expressed by colorectal cancer cells as well as other types oftumor cells. CEA-Scan would be used in conjunction with standarddiagnostic methods.
Immunomedics sold the international investors 200,000 shares of 5percent convertible preferred stock at $50 per share for a total of $10million in proceeds. The stock is convertible to common sharesduring the next two years. Investors who do not convert will receive a5 percent annual dividend beginning June 30, 1997.
If the 200,000 shares were converted using the $9.25 closing priceFriday of Immunomedics' stock (NASDAQ:IMMU), the companywould issue about 1.1 million common shares. The company endedthe day up 13 cents.
As of March 31, 1996, Immunomedics had $21.8 million in cash anda net loss of $3.4 million for the first three months of this year.
With an additional $10 million, Immunomedics' finance director PaulHerron said the company has sufficient funds to cover operations for"the next couple of years."
CEA-Scan also is being evaluated in late-stage clinical trials fordetection of lung and breast cancers. n
-- Charles Craig
(c) 1997 American Health Consultants. All rights reserved.