On the heels of its positive Phase III data for Myotrophin in thetreatment of Lou Gehrig's disease, Cephalon Inc. has registered withthe Securities and Exchange Commission to sell 2.5 million shares ofcommon stock.
Based on Cephalon's closing stock price Tuesday, the West Chester,Pa.-based company would raise about $42 million in the publicoffering. Cephalon ended the day at $16.75, off $1.
At the end of this year's first quarter, March 31, Cephalon had about18.3 million shares outstanding and $109 million in cash. Thecompany reported a net loss of $12.6 million for the quarter.
Cephalon, which is developing Myotrophin with Emeryville, Calif.-based Chiron Corp., anticipates filing a new drug application with theFDA by early 1996. Results of a second Phase III trial of Myotrophinin Europe are expected next month.
Myotrophin is a recombinant human insulin-like growth factor thatshowed it can slow the progression of Lou Gehrig's disease andimprove the patient's quality of life. Lou Gehrig's disease, oramyotrophic lateral sclerosis, is a fatal degenerative neuromusculardisorder that affects about 70,000 people worldwide, half of whomare in the U.S.
Cephalon also has another drug, modafinil, in Phase III studies fortreatment of narcolepsy. Modafinil is a synthetic compound that isbelieved to affect alpha-adrenergic receptors in the brain, possiblythrough the neurotransmitter norepinephrine. The company expects torelease results of the first of two Phase III modafinil studies in late1995.
The offering is being managed by Cowen & Co., Hambrecht & QuistInc. and Robertson Stephens & Co., all of New York. _ CharlesCraig
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