Techniclone International Corp. announced Thursday that it hasfinalized an agreement to place 1 million new shares of itscommon stock with Legere Enterprises Ltd., a majorshareholder in the company. The placement will bring theTustin, Calif., company $1.5 million in proceeds.
Techniclone's chairman and chief executive officer, Lon Stone,told BioWorld that the company will use the funds to meetexpenses associated with the submission of an application toFDA to conduct Phase III trials of LYM-1, its therapeuticmonoclonal antibody (MAb) for the treatment of lymphoma.After the Phase III trial is under way, he added, the companyplans to raise an additional $2 million through placements withother investors that have expressed interest in Techniclone.The company expects to make its submission to FDA at the endof this month.
With the completion of its private placement, Techniclone hasapproximately 14.5 million shares outstanding, Stone said. Thecompany has about $2 million in cash with a burn rate of$125,000 per month. LYM-1 is being developed under a jointventure with Los Angeles-based Alpha Therapeutic Corp., headded, so Techniclone is not responsible for the research anddevelopment expenses.
LYM-1 is a MAb labeled with radioactive iodine that is beingdeveloped for the treatment of lymphoma. Stone said that in aPhase II protocol with 15 patients, LYM-1 caused completeregression of tumors in 46 percent of patients, and that onaverage, the patients remained tumor-free for close to a year.
Techniclone's stock (NASDAQ:TCLN) was delisted in 1990 afterthe company fell below the $4 million in total equity that isrequired to maintain a listing. The company's shares currentlytrade on the pink sheets, Stone said, but the company hopes tobe relisted after its second offering this year. Techniclone lastraised money in mid-1993, he said, when it sold 2 millionshares of its stock for $2.4 million.
-- Karl A. Thiel Associate Editor
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