Life Medical Sciences Inc., developing tissue culturing techniques forpromoting cell growth directly at patients' treatment sites andbioresorbable polymers for preventing post-operative adhesions,registered for a public offering of 2 million shares to raise anexpected $13.5 million.

The Princeton, N.J., company, which will have 7.45 million sharesoutstanding following the offering, had about $3.8 million in cash atthe end of 1995 and reported a net loss for the year of $2.8 million.

In registering for the equity offering, Life Medical Sciencesanticipated a per-share price of at least $6.75 for gross proceeds of$13.5 million. Based on the $8.50 closing price of the stock(NASDAQ:CHAI) Tuesday, the sale of 2 million shares would raise$17 million. The company ended the day down 12 cents.

Underwriters Wedbush Morgan Securities, of Los Angeles, andFechtor, Detwiler & Co. Inc., of Boston, have options to purchaseanother 300,000 shares to cover overallotments.

Life Medical Sciences' most advanced products are based on its insitu tissue culturing technology, which uses serum-free combinationsof nutrients and hormones to stimulate cell growth, form bloodvessels and improve blood flow.

Cariel, which has been in clinical development since 1992, is a geltargeting on-site treatment of chronic wounds, such as diabetic ulcers,and burns. Another treatment, Piliel, is a viscous liquid designed tostimulate hair regrowth, and a third product, Lipoel, is aimed atimproving the success of autologous fat transplants, such as thoseused in reconstructive surgeries. Lipoel is being evaluated in pilottrials in Israel and Piliel completed initial studies last year in thatcountry.

The company's other main development program involves the use ofpolymers to prevent adhesions from forming following surgery. Theproduct, called Repel, has completed two preclinical studies.

Life Medical Sciences, founded in 1990, describes itself as a virtualcompany with five employees. It in-licenses technology fordevelopment using clinical research organizations to conductpreclinical and human trials.

The tissue culturing technology was licensed from the Technion-Israel Institute of Technology in Haifa, Israel, and the polymertechnology was licensed from Hebrew University of Jerusalem.

Life Medical Sciences' first commercialized product was a woundclosure device, called Sure-Closure System, which was sold in July1994 and is marketed by C.R. Bard Inc., of Boston. Life MedicalSciences receives 10 percent royalty on all net sales. n

-- Charles Craig

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