Advanced Tissue Sciences Inc. registered Friday for a public offeringof 3 million shares that should help the company commercialize itsfirst products.
Underwriters Goldman, Sachs & Co. and Morgan Stanley & Co.,both of New York, are managing the offering and have an option onan additional 450,000 shares to cover overallotments.
Advanced Tissue released the proposed offering Friday afternoon. Itsstock (NASDAQ: ATIS) closed Friday down 13 cents at $10.13. Atthat price the offering would gross about $30.4 million.
On Dec. 31, 1995, the company reported about $18.9 million in cashand equivalents, enough to last through September given the currentburn rate of nearly $6 million per quarter. It currently has about 33.8million shares outstanding.
Proceeds from the offering are expected to help in the launch of thecompany's human tissue products, the lead indications being forsevere burns and diabetic foot ulcers. A premarket approvalapplication (PMA) for Dermagraft-TC, an engineered human dermaltissue for burns, is expected to be filed in the first half of this year.Filing of a PMA for the foot ulcer product, Dermagraft, a skincovering, is expected by the end of the year.
Both products have been granted expedited review. Companyofficials have said medical devices such as the Dermagraft productshistorically have been reviewed in four to six months.
Earlier this month the company entered into an agreement giving itaccess to a $50 million equity line. Advanced Tissue can draw on thefunds for two years, at its discretion, and obtain up to $15 million atany one time. The company would sell stock at a 5 percent discountto an average trading price in return for any drawn funds.
Advanced Tissue plans to market the burn product itself, at least inthe U.S. and Europe. Dermagraft-TC would be marketed primarily tomajor burn centers, which could be covered with a small sales staff.The company is seeking partners in Europe and Asia for Dermagraft,the ulcer product, and would consider partnering the product in theU.S. if the deal is right. n
-- Jim Shrine
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