Drug Royalty Corp. Inc. of Toronto has completed its initialpublic offering of 10.7 million shares of common stock. Theshares went on the market at U.S.$1.06 per share, raising $11.4million for the company.
Drug Royalty (TSE:DRI) acquires interests in royalties, licenses,development fees and other entitlements in emerging andexisting drugs and technologies. The company's current royaltyinterests include Biokine's immunostimulant GMDP, now inPhase II, as well as Peptide T-MS for the treatment of multiplesclerosis and Peptide T-AI for inflammation, both in preclinicaldevelopment by Peptide Technology Ltd. of Australia. DrugRoyalty is currently earning royalties on sales of MorphineRhotard, a slow-release morphine product and DiltiazemMultipor, a slow-release diltiazem marketed by EthicalHoldings plc of the United Kingdom.
The offering was underwritten by Midland Walwyn CapitalInc., RBC Dominion Securities Inc. and Yorkton Securities Inc.The underwriters have the option to purchase a total of 1.6million additional shares in the next 60 days to coveroverallotments and maintain the option to purchase a total of 1million additional common shares at $1.40 per share on orbefore Jan. 6, 1996.
Drug Royalty's IPO was introduced to the Toronto StockExchange in April 1993. The company raised $7.6 million in1992 through private placements.
-- Karl A. Thiel Associate Editor
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