MedImmune Inc. has proposed raising $60 million through the saleof convertible subordinated notes to help fund construction of amanufacturing facility for its two marketed products, CytoGam andRespiGam.
Mark Kaufmann, MedImmune's manager of strategic planning andinvestor relations, said Thursday the financing, which follows asuccessful public offering five months ago that raised $58 million innet proceeds, would put the Gaithersburg, Md., company "in a solidfinancial position for the foreseeable future."
MedImmune said the notes, due in seven years, will be offered toinstitutional investors in 60,000 units valued at $1,000 each. Theunits would be convertible to $1,000 worth of common stock at aprice that has not been determined. The annual interest on the notesalso has not been decided.
As of March 31, 1996, MedImmune had $92.3 million in cash, whichincludes the money raised in the public offering. The company sold3.45 million shares at $18 per share for gross proceeds of more than$62 million.
MedImmune reported a net loss of $1.6 million for the first threemonths of this year and a 1995 loss of $22.7 million.
RespiGam was approved by the FDA in January 1996 for respiratorysyncytial virus in children and the immune globulin is being soldunder a co-promotion agreement in the U.S. with American HomeProducts Corp., of Madison, N.J. MedImmune has a collaborationwith Baxter Healthcare Corp., of Deerfield, Ill., for sales outside theU.S.
CytoGam, which is used to prevent cytomegalovirus in kidneytransplant patients, is sold by MedImmune and generated sales of$16.2 million in 1995, a 34 percent increase over 1994 revenues of$12.1 million.
MedImmune's proposed manufacturing facility, projected to costfrom $40 million to $45 million, will be used to make RespiGam,CytoGam and other products, including two monoclonal antibodies inlate stage development: MEDI-5000, targeted for organ transplantrejection, and MEDI-493, for prevention and treatment of RSV.
The company, which is seeking state and local government supportfor the plant, has received bids from Ohio, Maryland andMassachusetts for the manufacturing facility.
Funds from the $60 million financing not used for the constructionproject will support MedImmune's other drug developmentprograms.
MedImmune's stock (NASDAQ:MEDI) closed Thursday at $18,down 50 cents. n
-- Charles Craig
(c) 1997 American Health Consultants. All rights reserved.