Matrix Pharmaceutical Inc. said Monday it raised about$18 million from a self-managed private placement of1.48 million shares.

The company's president and CEO, Craig McMullen,said the financing leaves Matrix with more than $40million, which should last about two years at presentspending rates. At the close of the transaction, the MenloPark, Calif. company will have about 13.6 million sharesoutstanding.

Five European and U.S. investors participated in theprivate investment, including Matrix Chairman Ed Luck.The shares were sold for $12 each, a 25 cent-per-sharediscount to Friday's closing price. Matrix(NASDAQ:MATX) closed up 13 cents Monday at$12.38.

There were no other special terms or conditions attachedto the placement other than registering the shares,McMullen told BioWorld. He said Matrix is on scheduleto submit in August its first marketing authorizationapplication in Europe, and to file in September its firstnew drug application in the U.S. Each application will beseeking approval of AccuSite injectable gel for thetreatment of genital warts.

AccuSite is a sustained-release chemotherapy packageconsisting of a biodegradable protein matrix, 5-fluorouracil and the vasoconstrictor epinephrine. It isused for dermatological indications. IntraDose products,which consist of similar technology, are intended foroncological indications.

In April Matrix started Phase III trials of AccuSite forbasal cell cancer at 65 sites in the U.S., Europe, Australiaand New Zealand. Phase II trials of the product are underway for squamous cell carcinoma.

IntraDose-CDDP, which contains the chemotherapy drugcisplatin, was taken into Phase III trials in June to treathead and neck cancer and other accessible solid tumors.A Phase II trial of IntraDose is under way in prostatecancer, and one has been completed in liver cancer.

Matrix intends to commercialize AccuSite incollaboration with London-based Medeva plc, which hasmarketing rights in the U.S. and Western Europe. Matrixhas worldwide manufacturing rights and marketing rightsin all other areas. McMullen said Matrix will get nearly33 percent of revenues from European sales with itsroyalty and manufacturing arrangement, and in the U.S.will get a revenue split.

He said Matrix intends to maintain all U.S. rights toIntraDose. n

-- Jim Shrine

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

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