NeoRx Corp. announced Tuesday that it has filed a registrationstatement with the Securities and Exchange Commission for apublic offering of 2 million shares, adjusted for a 1-for-4reverse split.

Mabon Securities Corp. is the underwriter for the offering.

NeoRx (NASDAQ:NERX) of Seattle has about 38 million sharesoutstanding; after the split it would have 9.5 million. NeoRx'sshareholders will vote on the split at a special meeting on Dec.7. If approved, the split would become effective the date of thepublic offering.

NeoRx's senior vice president and chief financial officer, RobertLittauer, explained that the company proposed a reverse splitbecause the large number of shares currently outstanding has"reduced attractiveness to institutional investors."

At the end of September NeoRx had $17 million in the bank,with a burn rate of about $1 million per month.

NeoRx last visited the public offering well in August 1988, withits initial public offering of 2.5 million shares priced at $7 pershare. It grossed $17.5 million.

Since then, the company has raised money through privatefinancing. In August it garnered $9 million through a privateoffering of 4.5 million shares at an 11 percent market discount.

NeoRx develops biopharmaceuticals, particularly monoclonalantibody-based products, to detect and treat human diseases.The company has filed a product license application for a lungcancer diagnostic imaging product.

NeoRx's stock closed at $2.25 a share on Tuesday, off 6 cents.-- Brenda Sandburg

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