Procept Inc., with its lead drug in Phase I/II studies forAIDS, is entering the equity markets to sell 1.8 millionshares in a public offering expected to raise about $11million.

The sale would boost Procept's outstanding shares toabout 8.3 million. Based on the $6.75 closing priceTuesday of Procept's stock (NASDAQ:PRCT), theCambridge, Mass.-based company would raise more than$12 million. Procept ended the day up 38 cents. Theoffering is being managed by Oppenheimer & Co., ofNew York.

Procept's lead drug, PRO 2000, is a small moleculedesigned to bind to the CD4 receptor on T cells andprevent HIV from infecting the immune system cells. Thecompany, which successfully completed a Phase I safetytrial in May, is conducting Phase I/II studies in AIDSpatients.

In addition, Procept this month received $2.2 millionfrom Switzerland-based Sandoz Ltd. to continue foranother year their two-year-old drug discoverycollaboration targeting autoimmune diseases and organtransplant rejection. Prior to extension of the agreement,Procept had received $14 million from Sandoz since1993.

The alliance has focused on Procept's expertise with Tcell receptors to develop small molecule compounds thatinhibit CD4 and CD2 receptors. Both CD4 and CD2 areinvolved in immune system responses leading to diseasessuch as rheumatoid arthritis, and to graft rejection inorgan transplants.

Under terms of the extended agreement with Sandoz, ifno lead compound is found for CD2 by December 1995,that portion of the drug discovery collaboration will end.The two companies also agreed to consider continuing thealliance on CD4 inhibitors following the currentextension.

As of June 30, 1995, Procept reported $8 million in cashand a net loss of $6 million for the first six months ofthis year. _ Charles Craig

(c) 1997 American Health Consultants. All rights reserved.