Cephalon Inc. announced Wednesday that it has completed itsfollow-on public offering of 3.3 million shares of common stock,raising $49.5 million in gross proceeds.

Because of high demand, the company sold 300,000 moreshares than it proposed when the offering was announced inJanuary. The company will raise net proceeds of $46.3 millionfrom the offering, Cephalon spokesman Jason Rubin toldBioWorld.

The West Chester, Pa., company has offered its underwriters,Cowen & Co., Hambrecht & Quist Inc. and Robertson, Stephens &Co., the option to purchase an additional 495,000 shares ofstock (NASDAQ:CEPH) to cover any overallotments from theoffering.

As of Sep. 30, 1993, Cephalon had $50.3 million in cash, whichwill be almost doubled by this financing. The companyreported a loss of $13 million for the three quarters endedSept. 30, Rubin said. Cephalon now has approximately 16million shares of stock outstanding. The company plans to usethe proceeds from the offering in its research and developmentprograms and for the expansion of its facilities.

Cephalon's stock closed at $15.75 per share on Wednesday, up38 cents. -- Karl Thiel

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