Alpha-Beta Technology Inc. said Monday it registered to sell 2million shares in a public offering that, if successful, would fund thecompany through submission of a product license application on itslead product next year.
The Worcester, Mass., company at the end of 1995 reported 12.5million shares outstanding and about $28 million in cash. Theoffering would gross nearly $30 million based on Monday's closingprice of $14.88, which was down 38 cents on the day.
Hambrecht & Quist LLC, of New York, and Vector SecuritiesInternational Inc., of Deerfield, Ill., are underwriting the offering.
Alpha-Beta has been spending about $2 million per month. Thatshould increase moderately this year because of expenses associatedwith the Phase III pivotal study of Betafectin PGG-Glucan, acarbohydrate initially being developed to treat post-surgicalinfections, said Augustine Lawlor, the company's vice president,finance and chief financial officer.
The double-blind trial, with two doses and placebo, was started inFebruary 1995 and will involve 1,236 patients at up to 40 U.S. sites.Betafectin is being used in conjunction with antibiotics followinggastrointestinal surgery. Planned completion of patient accrual is theend of the third quarter this year, with results being available at theend of the year, Lawlor said.
"We would have $50 million to $60 million in cash on a pro formabasis after this offering," Lawlor said. "We would see this offering assecuring our way through the point of product license applicationfiling," which is expected around mid-1997.
Alpha-Beta now owns all rights to Betafectin. The company is indiscussions with potential partners that would help market theproduct and accelerate worldwide development, Lawlor said.
Early studies of Betafectin in hematopoietic indications are ongoing,and others are planned for additional follow-on surgery indications.Alpha-Beta has a preclinical development program in polysaccharideA, a T cell specific immunomodulator. n
-- Jim Shrine
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