ProCyte Corp. of Kirkland, Wash., has completed its third stockoffering since going public in 1989, raising $33.1 million fromthe sale of 2.5 million common shares at $13.25 per share. Theoffering, filed December 7, was postponed on December 13when FDA temporarily halted the company's clinical trials ofIamin gel for diabetic foot ulcers. Trials were resumed severaldays later after FDA determined that seven deaths in thecompany's study population were unrelated to the agent (seeBioWorld, Dec. 17).
The company filed an amendment reinstating its offering onJan. 7. The offering was co-managed by Wertheim Schroder &Co. and Dain Bosworth Inc.
With the completion of the placement, the company now hasapproximately 12.5 million shares outstanding and about $55million in cash and cash equivalents. The company expects tohave a burn rate of about $14 million during 1994. ProCyteVice President Karen Hedine said part of this expense isassociated with the construction of a $4.5 million drug-manufacturing facility that is slated for completion in March.
ProCyte plans to use funds from the offering for clinical trialsof seven products. The company's development-stage productsinclude Iamin B for inflammatory bowel disease and Copper I,a protease inhibitor for the inhibition of HIV virus.
ProCyte's stock (NASDAQ:PRCY) closed at $13.88 per share onWednesday, down 25 cents.
-- Karl A. Thiel Associate Editor
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