WASHINGTON _ Telios Pharmaceuticals, a seven-year-oldbiotech firm that is preparing to launch its maiden product, saidThursday it completed a public offering of securities that has raised$13.4 million for research and product development.The offering totaled 3 million shares of 1994 convertible preferredstock and 3 million step-up warrants. Each warrant can beredeemed for one share of stock over the next two years at a pricethat would increase during the second year. The price for one shareof stock and one warrant was $4.75.Company officials say they hope to reap an additional $18.3million when stockholders exercise their warrants, bringing thetotal to $31.7 million. A portion of the money would be used tobring its initial product, Argidine Gel, to pharmacists' shelves.Currently, Argidine Gel, a healing-agent for people with refractorydiabetic foot ulcers, is awaiting approval from the FDA. Thecompany filed a pre-market approval application for the gel inMarch 1993.Nancy McCrae, Telios' investor relations manager, said thecompany has completed three of four clinical trials and expects torelease the results within six months. If those studies yield positiveresults, they could help bring the product closer to its launch date.David Stone, an analyst for Cowen & Co., said FDA approval ofArgidine has taken longer than expected, but the company appearsto have weathered the delay with $14 million on hand.Stone said the level of investor interest in the company's mostrecent offering "indicates a level of support and confidence in theprospects of their lead product."Dave Duncan, Telios' chief financial officer, said, "We basicallywanted to construct an instrument that was good for investors andgood for Telios. We actually raised more money than we expected.We sold twice as many shares as we hoped for."Duncan said the company had hoped to raise $9 million.Telios currently has six other products in development, includingthe anti-clotting drug, TP-9201. The others have potentialapplications in cardiovascular disease, osteoporosis, fibrotic diseaseand tissue repair. n
-- Steve Sternberg Special to Bioworld Today
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