DepoTech Corp. on Friday grossed $36 million from aninitial public offering of 3 million shares priced at $12apiece.
DepoTech, of San Diego, is developing sustained-releasedrug-delivery technology. The company's lead product,DepoCyt, is being developed with Chiron Corp. It is inPhase III trials for the treatment of neoplastic meningitis.
The company originally proposed selling 2.5 millionshares at $10 to $12 each. (See BioWorld Today, Aug.24, 1995, p. 1.)
It now has about 10.8 million shares outstanding. On June30, 1995, DepoTech reported having $10.7 million incash and equivalents. Underwriters Dillon, Read & Co.Inc. and UBS Securities Inc., both of New York, have anoption to purchase another 450,000 shares to coveroverallotments.
DepoTech and Chiron, of Emeryville, Calif., reportedpositive interim results from a Phase III trial of DepoCyt,encapsulating cytarabine (ara-C), for neoplasticmeningitis arising from solid tumors. Other arms of thetrial involve disease arising from lymphomas andleukemia.
DepoCyt is an injectable drug based on the company'sDepoFoam lipid-based delivery technology. DepoTechand Chiron also are working on DepoFoam formulationsof Chiron's interleukin-2 and insulin-like growth factor-1products.
DepoTech's stock (NASDAQ:DEPO) closed Friday up$1 to $14 in heavy trading of 2.4 million shares. _ JimShrine
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