Lidak Pharmaceuticals said Thursday it completed a $2 million privateplacement of common stock with Japanese pharmaceutical companyGrelan Pharmaceutical Co. Ltd.Grelan purchased 522,449 shares of Lidak (NASDAQ:LDAKA) at$3.83 per share, a 25 percent premium to Wednesday's closing price of$3.06. The company's stock, which had risen 22 percent on Tuesday,closed Thursday at $2.81.Lidak, of La Jolla, Calif., now has about 28.5 million sharesoutstanding and just over $18 million in cash, David Katz, Lidak'spresident and CEO told BioWorld. He said the company's burn rate isexpected to double, to about $700,000 per month, during the fiscal yearstarting in October. In June, Lidak raised about $8.8 million from theexercising of 3.9 million Class B warrants.Katz said Grelan, a Tokyo-based firm with 1993 sales of $120 million,"is interested in our technology, and they wanted to make a long-terminvestment. We're in discussions with them, and other Japanesecompanies, about possible business relationships." He said Lidak alsois in discussions with potential partners in the Asian Rim area.Katz said the potential relationships would involve Lidak's anti-viralcream formulation, Lidakol, which is in Phase III trials in Europe fororal herpes. That trial is being funded by European licensing partnerYamanouchi Europe of the Netherlands. A Phase II trial of Lidakol inthe U.S. for oral herpes is ongoing, and the company is preparing forPhase III U.S. trials for oral herpes and genital herpes. _ Jim Shrine
(c) 1997 American Health Consultants. All rights reserved.