Matritech Inc., awaiting approval of its lead product, registered tosell two million shares in a public offering expected to raise about$20 million.
The Newton, Mass., company is developing cancer diagnostics basedon its nuclear matrix protein (NMP) technology, which involvesantibodies that detect cancer-specified NMPs. Matritech has receivedan approvable letter from the FDA for the NMP22 Test Kit, a urine-based assay for detecting bladder cancer.
A shareholder is offering 200,000 shares in the offering. Matritechwould have about 17.8 million shares if it sells the 1.8 million it isoffering.
At the end of the first quarter Matritech had nearly $11 million incash, with a net loss for the period of $1.4 million. The stock(NASDAQ:NMPS), which was trading at $13.38 when the offeringwas proposed last week, closed down 50 cents Tuesday at $10.75. Atthat price Matritech would gross $19.4 million. San Francisco-basedunderwriters Montgomery Securities and Genesis Merchant GroupSecurities are managing the offering.
Proceeds from the offering will be used to accelerate development ofother diagnostics in Matritech's pipeline, said Leslie Teso, thecompany's chief financial officer. Other tests are being developed forcolorectal, prostate, cervical and breast cancers. The company hopesthe colorectal cancer test will be in clinical trials by the end of theyear, she said.
Matritech has a collaboration with Bayer Corp.'s Diagnostic Divisionfor its cervical cancer product. It has a marketing and product-purchase agreement for the bladder cancer product with UroCor Inc.,of Oklahoma City, and with a Japanese company for the product inthat country and Taiwan. n
-- Jim Shrine
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