ICOS Corp., which has launched a Phase II trial with its lead product,ended 1995 with about a year's worth of cash and is heading into thepublic markets to sell 6 million shares in an effort to raise more than$50 million.

ICOS, of Seattle, had $21 million in cash at the end of 1995 andreported a net loss for the year of $23.3 million. In registering for thepublic offering, the company estimated a price for the 6 millionshares of $8.75 for gross proceeds of $52.5 million.

Based on the $8.12 closing price of the stock (NASDAQ:ICOS)Wednesday, ICOS would raise about $49 million. The shares endedthe day down 25 cents. Following the offering, ICOS will have 38.3million shares outstanding.

Underwriters are Robertson Stephens & Co., of San Francisco, RagenMacKenzie Inc., of Seattle, and Paine Webber Inc., LehmanBrothers, and Gerard Klauer Mattison & Co., all of New York.

ICOS lead drug development programs focus on inflammatorydiseases. Its most advanced product, a humanized monoclonalantibody called Hu23F2G, is designed to block movement ofneutrophils from blood into tissues during an inflammatory response_ a process that can damage tissues.

A Phase I trial, completed in December 1995, tested the antibody inmultiple sclerosis patients. In that study, ICOS said, the drug showedit could inhibit the trafficking of white blood cells from blood vesselsinto the brain and central nervous system tissues. Such movement ofwhite blood cells is believed to contribute to flare-ups of the disease.

Another Phase I trial in multiple sclerosis patients is continuing toassess the safety and dosing of the drug.

In the Phase II trial recently started, ICOS will evaluate theantibody's ability to prevent organ tissue damage from neutrophilsduring hemorrhagic shock involving cases of trauma.

ICOS also plans to conduct Phase II trials of the antibody forprevention of tissue damage caused by ischemic stroke, myocardialinfarction and acute peripheral arterial occlusion.

The company's other drug development programs include acollaboration with Glaxo Wellcome plc, of London, for treatment ofangina, congestive heart failure and male erectile dysfunction. n

-- Charles Craig

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