Cytogen Corp. entered into a financing agreement in which it couldsell up to $49 million of its stock over the next two years.
Cytogen, of Princeton, N.J., filed an initial shelf registrationstatement to allow for offerings of $11 million at various times. Anagreement with Nomura Securities International Inc. allows Nomura,at its discretion, to buy up to $11 million of Cytogen stock at a timeto distribute to public markets.
"This is a proactive decision to align ourselves with Nomura so wecan have access to additional capital," Pamela Murphy, Cytogen'svice president, corporate communications, told BioWorld. She saidthe company currently has no plans to access the money. But it wantsto be ready in the event that alliances, products or technology thatcould add value to Cytogen become available, she said.
"We see consolidation continuing to occur in the industry," Murphysaid. "We want to be prepared to take advantage of opportunities asthey arise."
Cytogen reported $7.7 million in cash and equivalents on Dec. 31.Since then it received $11.7 million from its takeover of its financingvehicle, CytoRad, and $5.3 million from DuPont MerckPharmaceuticals Co. related to their collaboration on Samarium-153EDTMP, a product in Phase III for bone pain related to cancer.
Cytogen has a product, OncoScint CR/OV, on the market in U.S. andEurope for detection of colorectal and ovarian cancer; and has filedproduct and establishment license applications for ProstaScint, aprostate cancer imaging agent.
Cytogen (NASDAQ:CYTO) has about 30 million shares outstanding.The company released terms of the deal late Tuesday. Its stock closedat $3.25 Wednesday, up 25 cents. _ Jim Shrine
(c) 1997 American Health Consultants. All rights reserved.