In summing up Diatide Inc.'s recent road show, President and CEORichard Dean said, "It's very competitive out there."
Despite the competition for investors' dollars, the Londonderry,N.H., company completed an initial public offering of 2.2 millionshares priced at $8.50 per share for gross proceeds of $18.7 million.The financing is expected to fund Diatide for 24 months, at whichtime the company hopes to receive its first product approval, Deansaid.
Diatide uses peptide and radiolabeling technologies in thedevelopment of technetium-99m-labeled peptides (Techtides) fornuclear medicine imaging procedures.
Phase III trials of the lead products _ P280 for deep vein thrombosisand P829 for tumor imaging _ are expected to be completed nextyear. Collaborator Nycomed AS, the Oslo, Norway-based leader inthe imaging business, has exercised options on both lead candidates.Nycomed has options on three additional imaging agents (forpulmonary embolism, infections and atherosclerotic plaque) beingdeveloped at Diatide.
The Nycomed deal involved a $10 million up-front payment toDiatide for a five-year option to exclusive licenses for the fivediagnostics, as well as research support and royalties on sales. Aseparate fee is paid for each option Nycomed exercises, as well asmilestone payments when marketing applications are filed andapprovals are granted for the licensed products.
Diatide (NASDAQ:DITI) now has more than $20 million in cash andabout 15.2 million shares outstanding. Its stock closed unchangedTuesday at $8.50.
"Those investors we sat down with who took the time to learn aboutDiatide were quite positive in their feedback," Dean said. n
-- Jim Shrine
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