Neurobiological Technologies Inc. (NTI) announced Wednesdaythat it has completed its initial public offering of 1.6 millionshares of common stock at $8 per share. The $12.8 million ingross proceeds from the offering may be increased through a240,000-share overallotment option NTI has granted itsunderwriters. Van Kasper & Co. was lead manager of theoffering. The company filed for the IPO in January.

NTI of Richmond, Calif., which will trade on NASDAQ under thesymbol NTII, will realize net proceeds of $11.8 million from theoffering, the company's president and chief executive officer,Jeffrey Price, told BioWorld. With the completion of theplacement, NTI has approximately 3.6 million sharesoutstanding and about $14.5 million in cash (not includingoverallotments). The company has a quarterly burn rate ofabout $800,000, Price said.

NTI, which is developing therapeutics based on neurosciencesresearch, has three compounds in clinical trials. Corticotropin-Releasing Factor (CRF) is a human anti-inflammatory peptide inPhase I/II development for edema resulting from braintumors, reduction of edema associated with cosmetic andreconstructive surgery and alleviation of acute asthma. NTI hascompleted Phase I trials of the neuroendocrine-immuneregulator for these indications and is also studying CRF as atreatment for pulmonary edema, rheumatoid arthritis, sepsisand graft-vs.-host disease following bone marrow transplants.

NTI is in Phase II development of Dynorphin A, a humanpeptide the company believes can reduce tolerance to anddependence on morphine. The drug is being studied for itsability to restore morphine-induced analgesia in patients whohave become tolerant to the drug's effects through prolongeduse. An investigator-initiated Phase I/II trial of Dynorphin A isunder way to evaluate the compound's ability to reducecravings in heroin addicts, the company said.

Nicosim, an oral, non-nicotine pharmacologic aid for cigarettesmoking cessation, is also in Phase I/II development by NTI.The drug, a combination of two currently marketed drugs,mimics nicotine's actions to reduce the severity of withdrawalsymptoms, the company said.

NTI's last financing was in December 1993, when it raised netproceeds of $1.65 million through the placement ofapproximately 250,000 shares of its stock with several privateinvestors, including Mohr, Davidow Ventures of Menlo Park,Calif., and Arthur Rock & Co. of San Francisco.

NTI was founded in 1987. Its scientific founders include EnochCalloway, a psychiatrist from the University of California, SanFrancisco.

-- Karl A. Thiel Associate Editor

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