Cytel Corp. sold more than 3 million shares of stock in a privateplacement that raised $9.4 million, including $5 million fromLondon-based Rothschild Asset Management Ltd.
Karin Eastham, chief financial officer of the San Diego-basedcompany, said funds will be used to finance development of thecompany's two lead products, Theradigm-HBV and Cylexin, whichare in Phase II clinical trials.
Theradigm-HBV, which is being tested in Phase II trials for patientswith hepatitis, is engineered to induce antigen specific cytotoxic Tlymphocytes to attack infected cells.
Cylexin, a cell-adhesion blocker, is being evaluated as a method ofreducing reperfusion injury following surgical procedures. A PhaseII trial is under way in patients undergoing pulmonarythromboendarterectomy, which involves removal of blood clots fromthe lung. Another Phase II study is expected to begin later this yearfor myocardial infarction in angioplasty patients.
Eastham said Cytel's cash on hand at the end of the third quarter,Sept. 30, would have totaled $38.4 million by adding the $9.4million from the stock sale and a $5 million equity investment lastweek from Japan-based Sumitomo Pharmaceuticals Co. Ltd. Cytelhas a burn rate of $1.5 million a month and 21.4 million sharesoutstanding.
Investors in the private placement paid $3.12 per share. In additionto Rothschild Asset Management, three other investment groups eachpurchased $1 million worth of stock.
The company's partnership with Sumitomo focuses on Cytel's cell-adhesion program. Other agreements with The Scripps ResearchInstitute, of La Jolla, Calif., and Japan-based Takara Shuzo Co. Ltd.target Cytel's Theradigm technology. _ Charles Craig
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