SuperGen Inc. said Wednesday it sold 3.5 million units in an initialpublic offering that grossed the Emeryville, Calif., company $21million.
The offering was priced at $6 per unit. Each unit consists of onecommon share and a warrant that can be exercised for five years at$9. The warrants can be called by the company if the stock trades at$18 or more for 20 consecutive trading days.
SuperGen registered on Jan. 22, 1996, for a proposed offering of 3million units at an expected price of $5.50 to $7.50 each. Thecompany has about 16.3 million shares outstanding, excludingoptions and warrants.
Paulson Investment Co. Inc., of Portland, Ore., underwrote theoffering. The stock (SUPG) and warrants (SUPGW) are trading onNASDAQ. The stock lost $1.25 per share Wednesday to close at$4.25.
The company's strategy involves a three-tiered approach: to establishmarket presence and near-term revenue through development of fiveanticancer generic drugs; to develop four "supergeneric" anticancerdrugs with value-added properties that allow the manufacture ofready-to-inject, stable solutions; and proprietary compounds, derivedfrom natural hormones, to treat various forms of anemia. Oneproprietary compound, in Phase I/II studies, is an oral hormone-baseddrug for severe chronic obesity.
Between inception in 1991 and Dec. 31, 1995, SuperGen had totaloperating expenses of only $16 million, nearly $5 million of whichwas a non-cash charge for acquisition of in-process research anddevelopment. Rather than securing venture capital like most start-upsthe company has relied mostly on financing from company founders.
The generic drugs in development are mitomycin (for which anapplication has been filed), bleomycin, etoposide, vincristine andcisplatin. The supergenerics under development are Mitomycin Extra,Paclitaxel Extra, Doxorubicin Extra and Daunorubicin Extra. n
-- Jim Shrine
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