Medarex Inc. grossed $10.95 million from the directplacement of nearly 2.2 million shares at $5 each, thecompany said Wednesday. Proceeds were about half ofwhat the company had hoped for when it registered forthe sale on Oct. 17, 1995.
As of June 30, 1995, the Annandale, Va., company had$9.6 million in cash. The offering leaves Medarex withabout 11.7 million shares outstanding. Smith Barney Inc.,of New York, and Vector Securities International Inc., ofDeerfield, Ill., underwrote the offering.
Donald Drakeman, president and CEO of Medarex, said,"We were able to place the stock with some very goodinvestors, and we were pleased to raise the money. Manyof the investors who are not dedicated biotech investorsmay be less interested with the biotech sector than theywere previously. We focused primarily on people heavilyfocused in biotechnology."
When Medarex registered for the offering, it proposed thesale of 3 million shares and its stock was trading near $7per share. The stock (NASDAQ:MEDX) closed down $1Wednesday, or 16 percent, at $5.38
Medarex is developing bispecific antibodies designed tobind to both diseased cells and immune system killercells, to ensure the latter launches an assault on theformer.
The bispecific product MDX-210 _ being developedwith Basel, Switzerland-based Ciba-Geigy Ltd. _ is inPhase I/II studies for cancers that express the HER-2protein. MDX-210 also is being studied in other trials,including one in combination with granulocyte colonystimulating factor. MDX-447, also in Phase I/II, is beingdeveloped with Germany-based Merck KGaA. It is aimedat epidermal growth factor receptors, which are expressedin various cancers.
Separately, Medarex has MDX-240 in Phase I/II trials forHIV and is in Phase II leukemia studies with MDX-11and MDX-22. n
-- Jim Shrine
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