Less than a week after receiving a $5 million loan from corporatepartner Wyeth-Ayerst Laboratories, Athena Neurosciences Inc. said ithas borrowed another $14 million from two other sources.
Athena's president and CEO, John Groom, said Thursday thecombined $19 million in financing will offset expenses for the fiscalquarter, ending June 30. In addition to a $6 million burn rate for thequarter, the South San Francisco-based company paid $9 million toEli Lilly and Co., of Indianapolis, for rights to Permax, a dopamineagonist for Parkinson's disease, and $3 million to Ireland-based ElanCorp. plc as part of a strategic alliance forged in April.
Groom added that Athena has $40 million in cash and the company'sburn rate for the year is expected to total about $25 million.
The $5 million, five-year loan from Wyeth-Ayerst, of King ofPrussia, Pa., was part of a $9.4 million deal, announced June 30,extending a 1991 drug discovery collaboration.
The two loans totaling $14 million also were negotiated during thesecond quarter, Groom said.
First Interstate Bank of California in San Francisco provided $9million in a loan that was guaranteed by Lilly, which has hadcollaborations with Athena dating to 1991.
The other $5 million is a 42-month loan from two financing groups,GATX Capital Corp., of Chicago, and Meier, Mitchell & Co., ofBerkeley, Calif.
Athena (NASDAQ:ATHN) closed Thursday at $9.12, unchanged. _Charles Craig
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