Aronex Pharmaceuticals Inc., formed last year through a triplemerger, said Friday its public offering of six million shares waspriced at $5 each, resulting in gross proceeds of $30 million.

Aronex's stock (NASDAQ:ARNX) was at $4.38 when it filed for theoffering on April 11, 1996. It closed Friday at $5.06, down 44 cents.

Aronex, of The Woodlands, Texas, was created In September 1995when Argus Pharmaceuticals Inc., Triplex Pharmaceuticals Corp. andOncologix Inc. merged. The combined company's lead products areliposomal formulations of existing drugs originally developed atArgus.

Aronex this year started Phase III studies of Nystatin (LF), aliposomal formulation of the antifungal agent nystatin. It is in PhaseII/III studies with Tretinoin, a liposomal form of all-trans retinoicacid, and is in Phase I trials of a liposomal form of anthracyclinecalled Annamycin. A guanine-thymine oligonucleotide, Zintevir(AR177), is in Phase I studies for HIV. That product originated withTriplex.

Aronex President James Chubb said he saw a theme throughout thecompany's road show: Investors are interested in looking atcompanies with products in clinical trials.

"A lot of the investors we talked to felt biotechnology has progresseddramatically," Chubb said. "They see the industry maturing and aremuch more interested in looking at opportunities now."

He said Aronex's well-balanced portfolio, with different products atdifferent stages of development, went over well with investors.

Aronex now has 27.7 million shares outstanding. It had about $12million in cash and long-term investments on March 31, 1996, with anet loss for the quarter of $2.1 million.

Chubb said the company should be financed through 1998, when it isexpected to have new drug applications filed on its lead products.

Shareholders will be voting later this week on a company proposalfor a one-for-two reverse stock split, which would halve the sharesoutstanding and double the stock price. Chubb said the split couldexpand the investor base because some institutions have difficultyinvesting in stocks trading in the $5 range. n

-- Jim Shrine

(c) 1997 American Health Consultants. All rights reserved.